How Much 20-Somethings Should Save

Your 20s may seem like an odd time to think of retirement, but it’s actually the perfect moment to start planning for your later years. That’s because the earlier you start saving, the more time your money has to grow.

Savers who begin setting aside 10% of their earnings at 25, for example, could amass significantly more by retirement age than those who wait just five years to start saving. You can use online calculators to see how much starting saving now can produce once you reach retirement.

Building a nest egg on a starter salary and a shoestring budget can seem daunting, though. Focusing on the incremental savings, rather than the goal, can help your savings objectives feel more manageable.

How Much to Save for Retirement

For those earning around $25,000 a year, the median income for 20 to 24 year olds in 2015, saving the recommended sum of 10% amounts to a little more than $200 a month.

It may seem like a reach, but consider this: If you start saving $100 a month at age 25 and invest it to return 7.7% a year — the average total return of the Standard & Poor’s 500 Index of U.S. stocks over the past decade — you’ll have more than $378,000 available at retirement age. And it could be tax-free.

If you wait until you’re 30 to start and save the same monthly amount at the same rate of return, you’ll wind up with less than $253,000.

Several vehicles can help you build a retirement fund. A 401(k) contributory plan, typically offered by your employer, is often the most convenient and easily accessible of these. Contributions you make usually aren’t taxed, which helps reduce your income tax liability.

  • Pre-tax 401(k) accounts make up around 80% of retirement plans offered by employers, according to the American Benefits Council. Roth 401(k) accounts are another option, though these are less widely available, and money contributed to a Roth 401(k) account goes in after it’s taxed. Money withdrawn from this type of account — including earnings — is usually tax-free.
  • Companies that offer a 401(k) plan often match employee contributions, up to a certain percentage. This is essentially free money toward your retirement.
  • If your employer will match your contributions, try to take full advantage and commit a large enough percentage to get the full benefit.
  • Beyond a 401(k), individual retirement accounts, commonly referred to as IRAs, offer another solid option. There are two types: traditional and Roth.
  • Money put into a traditional account is tax-deferred, similar to funds put in a traditional 401(k) plan. That means those funds aren’t taxed until they’re taken out. But typically any earnings you make with the money are also subject to income taxes on withdrawal.
  • Money put into a Roth IRA has already been taxed when you earn it, so there’s no immediate tax benefit. When it’s time to withdraw the cash, however, you usually don’t pay taxes on it. And anything the money earns also can be taken out tax-free.
  • Contributions to both types of IRAs are currently capped at $5,500 a year for those under age 50, and $6,500 for older workers.

How Much to Save for Emergencies

In addition to retirement, it’s also wise to save for a rainy day. Ideally, your emergency fund should be enough to cover three to six months of living expenses.

Some experts suggest setting aside even more for savings and investments: 20%. That’s roughly $415 a month on an annual income of $25,000.

That’s not always feasible, especially if a big chunk of your monthly income goes to student loan and credit card payments. Consider saving what you can, even if it’s just $10 a month.

Making a habit of saving now could serve you well down the road. And, as your income increases, the percentage you save can as well.

© Copyright 2016 NerdWallet, Inc. All Rights Reserved

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F & M Bank Corp. to Present at 2016 Microcap Conference

TIMBERVILLE, VA—October 24, 2016—F & M Bank Corp. (FMBM), parent company of Farmers & Merchants Bank, will present at the 2016 Microcap Conference in Philadelphia tomorrow, October 25, 2016. Neil Hayslett, Executive Vice President and Chief Administrative Officer, will lead the discussion on behalf of F & M Bank Corp.

The MicroCap Conference is an exclusive event for investors who specialize in small stocks. It provides an opportunity to be introduced to and speak with management at some of the most attractive small companies, to learn from various expert panels, and to mingle with buyside analysts and other micro-cap investors.

If interested in learning more about F & M Bank Corp., the only publicly traded organization based in Rockingham County, the conference will be available via webcast. The presentation will begin at 12 PM on October 25, 2016. Please, click here to register!

About F & M Bank Corp.
F&M Bank Corp. is an independent, locally-owned, community bank holding company, offering a full range of financial services, through its subsidiary, Farmers & Merchants Bank's twelve banking offices in Rockingham, Shenandoah, Page and Augusta Counties, Virginia. The Bank also provides additional services through two loan production offices located in Penn Laird, VA and Fishersville, VA and through its subsidiary, VBS Mortgage located in Harrisonburg, VA. Additional information may be found by contacting us on the internet at or by calling (540) 896-8941.

F & M Bank Corp. Announces Record Quarterly and Year to Date Earnings and Dividend Increase

TIMBERVILLE, VA / ACCESSWIRE / October 21, 2016 / F & M Bank Corp. (FMBM), parent company of Farmers & Merchants Bank, announces its financial results for the third quarter and year to date ending September 30, 2016.

Selected highlights for the quarter and year to date include:

  • Net income of $2.6 million and $7.0 million, respectively;
  • Net income per common share increased 14.04% YTD;
  • Net interest margin of 4.33%;
  • Net interest income YTD increased $1.4 million;
  • Loans held for investment increased $34.0 million YTD;
  • Return on Average Assets of 1.43% for the third quarter

Dean Withers, President and CEO, commented, “We are pleased to announce record third quarter and year to date earnings of $2.601 million and $7.049 million. These results represent increases of 18.82% and 13.04% for the respective periods. Loan demand continues to be strong with the growth in loans held for investment totaling $34.0 million year to date. Deposit growth has also accelerated in the last two quarters with the year to date increase now totaling $33.2 million. Our net interest margin at 4.33% has been stable over the last several quarters and continues to drive our extraordinary results.”

Withers continued, “During the third quarter, we opened our twelfth branch in Grottoes, Virginia and began construction on our thirteenth branch in Fishersville, Virginia. These branches will supplement the two branches we opened in 2015 in Staunton and Craigsville to further strengthen the growth of our southern market.” Withers stated, “On October 20, 2016 our Board of Directors declared a third quarter dividend of $.22 per share to common shareholders. This is an increase of $.02 (10%) over the prior quarter and $.03 (15.79%) over the prior year. Based on our most recent trade price of $25.00 per share this constitutes a 3.52% yield on an annualized basis. The dividend will be paid on November 17, 2016, to shareholders of record as of November 3, 2016.” Highlights of our financial performance are included below.

F & M Bank Corp. is an independent, locally-owned, community bank holding company, offering a full range of financial services, through its subsidiary, Farmers & Merchants Bank’s twelve banking offices in Rockingham, Shenandoah, Page and Augusta Counties, Virginia. The Bank also provides additional services through two loan production offices located in Penn Laird, VA and Fishersville, VA and through its subsidiary, VBS Mortgage located in Harrisonburg, VA. Additional information may be found by contacting us on the internet at or by calling (540) 896-8941.

This press release may contain “forward-looking statements” as defined by federal securities laws, which may involve significant risks and uncertainties. These statements address issues that involve risks, uncertainties, estimates and assumptions made by management, and actual results could differ materially from the results contemplated by these forward-looking statements. Factors that could have a material adverse effect on our operations and future prospects include, but are not limited to, changes in: interest rates, general economic conditions, legislative and regulatory policies, and a variety of other matters. Other risk factors are detailed from time to time in our Securities and Exchange Commission filings. Readers should consider these risks and uncertainties in evaluating forward-looking statements and should not place undue reliance on such statements. We undertake no obligation to update these statements following the date of this press release.

Read the Key Statistics on Yahoo! Finance


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Year-End Retirement Savings Strategies

Whether your retirement unfolds as a beautiful dream or a scary nightmare depends largely on the financial decisions you make today. But if retirement planning is brand-new to you, you’re not alone.

The average working household has very little cash saved for retirement and about 45% of working-age households have no retirement savings at all, according to the National Institute on Retirement Security.

However, you still have time this year to start building a retirement fund and gain a tax advantage in the process.

Calculate your target

How much will you actually need for retirement? Chances are, quite a lot. Retirement may last anywhere from 15 to 20 years or more, and you’ll need somewhere between 70% and 90% of your pre-retirement income annually to live comfortably.

Don’t count on Social Security to cover this; many people experience some shortfall. To determine yours, contact the Social Security Administration online or call 1-800-772-1213 for a benefit estimate. Factor in retirement accounts you already have, as well as how expenses might change after retirement. To close your gap, you’ll need to save $15 to $20 for each annual shortfall dollar. So an annual shortfall of $25,000 means you’ll need to save between $375,000 and $500,000 before retirement.

Tax-advantaged retirement strategies

There are various types of savings plans that let you save on your taxes while you get ready for retirement.

IRAs: Individual retirement accounts come in many forms, including CDs and mutual funds. In any case, two basic structures apply:

Traditional IRAs: Contributions aren’t taxable until you withdraw funds during retirement, which can dramatically reduce what you owe the IRS this year. By the time you withdraw cash, you’ll likely be in a lower tax bracket.
Roth IRAs: If you won’t owe much to Uncle Sam this year, consider a Roth IRA. The money invested remains taxable as income this year, but then grows tax-free.

Both IRA types have a basic contribution limit of $5,500 annually (with the exception of qualified reservist repayments and rollover contributions). If you’re 50 or older, however, you’re allowed to make additional catch-up contributions of $1,000 each year.

401(k) plans: These employer-managed plans often match employee contributions up to a set limit, which translates to free retirement money for you. Unless your plan is specifically a Roth 401(k), your contributions are deducted from your federal income, resulting in a nice immediate tax break. Like traditional IRAs, when you make retirement withdrawals, the money is taxed as income. When planning your retirement savings, make sure to take full advantage of any employer 401(k) match that’s available before putting money into other types of plans.

Health savings accounts: HSAs don’t generally come to mind during retirement planning, which is a shame because if you’re enrolled in a high-deductible health insurance plan, they can provide a tax break today and help to make retirement more comfortable down the road. Payroll deductions for HSAs are pretax, and individual contributions are tax-deductible, up to the annual limits of $3,350 for individuals and $6,750 for families. Then, to sweeten the deal, any interest earned on these accounts is tax-free, and you can make tax-free withdrawals anytime for qualified medical expenses.

If you’re wondering what this all has to do with retirement, there’s no limit on carry-overs or when you have to withdraw funds. This means you can invest annually in an HSA, receive a tax break right away, and reserve the funds to use tax-free for medical expenses during retirement.

Once you’ve reached the contribution limits for tax-advantaged retirement investment options, you can explore alternative retirement savings options, including money market accounts, CDs and cash-value life insurance, to make sure your shortfall is covered. With the right planning and discipline on your part, you can achieve your best possible tax outcome this year while ensuring a comfortable tomorrow.


© Copyright 2016 NerdWallet, Inc. All Rights Reserved


Best Ways to Start Saving for the Holidays

“Christmas in July” is the name of a movie in which a man called Jimmy is tricked into believing he's won $25,000 in a national radio contest. (It's from 1940, but the point remains.) He promptly goes out and blows his winnings on a shopping spree. When the truth comes out that Jimmy didn't win, the department store owner tries to repossess all the presents Jimmy bought for his girlfriend, his mother and everyone on the block.

The movie has a happy ending — Jimmy is officially named the contest winner after all — but real life is seldom so benevolent when we overspend. Here are some steps to avoid such a predicament this holiday season:

Examine your finances

Unless you know a windfall is coming your way, setting up a savings account dedicated to holiday spending is an excellent way to avoid running up debt.

Craft a budget to approximate what you can afford to salt away by subtracting expenses from income. It may be useful to differentiate between fixed expenses such as your mortgage or rent, utilities and car payments, and variable ones such as food, entertainment and vacations.

It also may help to review how much you spent on gifts last year. Whatever savings goal you come up with, divide it by the number of weeks left before the holidays to calculate how much to set aside each week.

Setting up the account

Once you have your target, the next step is to set up the account with your bank or credit union and decide how to fund it. If you already have direct deposit set up with your employer, it may be possible to divert a specified sum from each paycheck — $25, $50 or whatever you decide to contribute — to this account.

Automating the process makes it easier to meet a savings target while also “masking” the loss. You don't miss what you don't see.

You might also consider padding the account to go beyond gifts and cover holiday-related outlays for decorations, dining out and traveling.

Staying on track

The earlier you know what you're buying for whom, the sooner you can start monitoring prices and timing your purchases to take advantage of promotions and sales. And if you have a credit card with cash-back rewards, consider using it on holiday gifts to earn a bit on your spending.

As the holidays near, you may also wish to freeze extra spending. This could increase the likelihood you'll reach your goal and avoid excessive debt on other fronts.

If you see your budget is going to fall short of projected costs and want to avoid incurring debt, you may wish to consider paring down your list or the specific gifts you had planned on.

Now, this might sound contradictory, but if you have your plan and are sticking to it, consider using a credit card to actually make your purchases. Why? Because using a credit card can mean better fraud protection, price protection and the ability to earn rewards. When the bill comes in January, you pay it out of the dedicated savings account you'd set up.

Whatever you do, be smart and be responsible with your holiday spending, because most of us can't count on a Hollywood-type happy ending.

© Copyright 2016 NerdWallet, Inc. All Rights Reserved


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F&M Bank to Host Groundbreaking Ceremony for New Branch at Coffman’s Corner

New Location Slated to Open in 2017

TIMBERVILLE, VA—October 3, 2016— F&M Bank, a locally owned independent community bank headquartered in Timberville, VA, is excited to announce it will soon break ground on its 14th location near RMH Sentara Campus in Harrisonburg.

The ground breaking ceremony will take place on Thursday, October 13th from 11:30 am – 12:30 pm at 2030 Legacy Lane in Harrisonburg. Coffman’s Corner is an 11-acre mixed-use development that will be comprised of destination retail, medical and professional offices. Coffman’s Corner is one of the last remaining prime parcels near the new $300 million Rockingham Memorial Campus (RMH).

“Coffman’s Corner, by Cottonwood Commercial, has road frontage on both Port Republic Road (24,000 AADT) and Southeast Connector Road (projected 31,000 AADT) which connects every commercial corridor in Harrisonburg. This highly visible parcel is located directly across from RMH, which serves over 190,000 outpatients and 16,300 inpatients each year and has more than 2,400 employees. It is directly connected to 8,000+ Student Beds, JMU’ s main campus (8,200 employees), and Interstate 81 within 2 miles via Port Republic Road”, according to Cottonwood Commercial’s website.

The Harrisonburg-Rockingham Chamber of Commerce, public officials, and F&M Bank staff and board members will be in attendance and available for comment. The public is invited to attend the event and stay for a light lunch.

F&M Bank currently operates bank branches in Harrisonburg, Staunton, the counties of Rockingham, Page, Shenandoah, and Augusta; an automotive dealer finance division in Harrisonburg; VBS Mortgage in Harrisonburg; and a loan production office in Fishersville. F&M Bank also recently broke ground on a branch in Augusta County, located at Myers Corner on Route 250 in Fishersville. The much anticipated Coffman’s Corner branch is slated to open in 2017 and will provide its customers a unique branch setting along with a multi-use facility for meetings and events.

For additional information about F&M Bank or the groundbreaking ceremony, contact Holly Thorne, 540-896-1743, or email

About F&M Bank:
F&M Bank serves the Shenandoah Valley with 12 full-service branches, a network of ATMs, and a wide variety of financial services. Both individuals and businesses find the organization’s local decision-making, and up-to-date technology provide the kind of responsive, knowledgeable, and reliable service that only a progressive community bank can. Farmers & Merchants Bank has grown to over $700 million in assets — celebrating its most successful year in history in 2015 — and boasts over 160 full and part-time employees. Its conservative approach to finances and sound investments, along with excellent customer service, has made F&M Bank profitable and continues to pave the way for a bright future.

Coffman’s Corner by Cottonwood Commercial: