Archive for category: Personal Finance

2020 threw a major curve ball to the entire world, with small businesses especially hard hit by pandemic-related economic challenges. Now, as Virginia moves into the third phase of reopening, local small businesses are taking stock of the damage and preparing to bounce back. Here are 10 things to check off your to-do list to help your business start down the road to recovery. Is your business headed in the right direction? Are you on track to meet your quarterly and annual goals? Review our list of 10 steps to financial recovery for Virginia small businesses and contact our commercial team for personalized advice.

1. Review your business plan or create one if you don’t already have one in place.

 

As your business grows, you may need to reevaluate your business plan to accommodate new goals and circumstances. Or, if your business is brand new you may not have finished building a business plan yet. For inspiration, check out these business plan resources from SCORE Shenandoah Valley.

Need more personalized help? “The lending staff at F&M can work with commercial customers to provide quick decision making,” says Jordan Dean, Vice President; Commercial Relationship Manager. “We’re not just bankers, but knowledgeable professionals that can offer sound advice to a variety of industries.”

2. Set a budget, track it, and stick to it.

Just as a budget is the foundation of your healthy personal finances, your business also needs to plan and track cash inflow and spending. SCORE Shenandoah Valley has a free on-demand course with tips on budgeting for your business.

3. Reduce high-cost debt.

Are your principal or interest payments too high and dragging down your cash flow? Consider consolidating and refinancing your high-cost debt into a more affordable monthly payment with our Business Term Loans.

Discussing cash flow scenarios with your loan officer can help lead to unique solutions for your business. “My goal is to form long-lasting relationships with my customers as I help them grow and thrive. I bring a consultative approach to understand all aspects of my client’s business and personal goals”–Brooke Zirk, Vice President; Commerical Relationship Manager.

4. Understand and manage your business cash flow cycle more effectively.

Many profitable businesses have closed their doors due to cash and resource mismanagement. That’s why it’s so important to understand your cash flow cycle, use debt where appropriate and have a plan! It’s also advisable for new business owners to use the services of a commercial lender to help them either plan for financing options for a new business or even do a wellness check for existing businesses.

5. Pay bills on time.

Falling behind on regular overhead costs isn’t a good sign for the financial health of your business. Use these accounting and cash flow resources from SCORE Shenandoah Valley to forecast profits and losses and set yourself up to stay on top of accounts payable this year.

If you need help evaluating your cash flow strategy, don’t be afraid to ask your loan officer. “Our decisions will always have your best interest in mind and your success is linked to ours. It’s our job to match your financial needs with the best product whether it’s a loan, checking account, etc”–Kevin Nixon, Vice President; Commercial Relationship Manager.

6. Establish or build on existing savings.

Saving for a rainy day can help your business manage cash flow and avoid falling too far into debt. Browse the business savings account options at F&M Bank and don’t be afraid to ask questions of your banker. You may also want to consider the tools you are using to conduct business to determine if cost savings options are available.

“When partnering with a business, we tailor our Business Solutions package to fit your specific needs. From treasury and merchant services to our one-of-a-kind courier option, we have everything a business needs to succeed!”–Mary Pavlovskaya, Bank Officer; Business Deposit Services Officer.

7. Improve your digital presence and SEO.

As a small business owner, you’re already juggling many responsibilities. The prospect of digital marketing can feel overwhelming, but if you can’t afford to outsource it, it’s worth it to devote a regular bracket of time each week to improve your SEO and SEM.

8. Utilize social media and promote your business regularly.

The same thing goes for social media. As a local business, you need to interact with your customers on their favorite social platforms. Check out these free social media marketing tools to help you get started.

9. Become more involved in the local community.

 

As a longtime community bank, we understand the importance of getting involved locally. After all, the success of our bank–and any local business–is tied to the success of the community. As Donna Brown, Vice President; Commercial Relationship Manager, says:

“The betterment of our local communities, businesses, and individuals continues to be at the forefront of our corporate objectives and goals, as it has always been since 1908. We have a proven history of promoting, serving and enriching our local communities, friends, and neighbors.”

This year, spend some time thinking about the causes and organizations you’d like to get involved with and then execute your plans. At the same time that you’re doing good work, you’ll build awareness of your brand, engage with existing customers, and connect with new prospects.

10.  Build a relationship with their banker/financial institution.

When you partner with a relationship bank like F&M, you can count on sound financial advice and recommendations throughout the life of your business.

“I would advise every business owner to develop a relationship with their banker. Most bankers can help guide their customers in financial decisions and give them thoughts to consider when starting a business and moving ahead with growth and needs”–Barbara Bartley, Assistant Vice President; Commercial Relationship Manager.

“We take the team approach, and our employees are dedicated to servicing our customers and building lasting relationships. We also have local decision making which means the person that you are working with from the beginning is also approving your loans.”–Renee Hartless, Assistant Vice President; Commercial Relationship Manager.

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Contact a commercial lender at F&M Bank today!

If you’re looking for Virginia small business lenders, give our team of commercial lenders in Virginia a call. You can browse our staff here, learn more about the business banking solutions we offer, and contact us at your convenience.

The global Coronavirus pandemic is an unprecedented experience for Americans alive today. It’s natural to feel a lot of anxiety about the future, including the future of your portfolio. Luckily, market volatility is not unprecedented. In this article, we’ll apply the lessons of previous market downturns to help you develop a sensible economic outlook for whatever stage of life you’re in now. Have questions? Contact one of our Virginia-based Financial Advisors today.

Long-Term Financial Goals in your 20’s and 30’s

In this stage of life, you have the power to take the long view and buy low, which will help you take advantage of upswings when the market inevitably turns around. In general, you want to buy less when the market is high and more when it’s low. This is when you are most likely to benefit the most from compound interest.

Start Now

Whether you’re just out of college, building your career, or married with kids, now is the time to get your finances in order and put a financial plan in place. Even if you can’t afford to save much right now, whatever you can put into your investment accounts will benefit you in the long run. You can reduce total interest paid on debt, benefit from flourishing markets, and be financially prepared for unexpected emergencies or expenses.

• Open a retirement account if you don’t already have one. If you don’t qualify for an employer sponsored plan, you can open your own Individual Retirement Account (IRA).
• Boost your emergency savings. Start with a manageable goal like $1,000 and work your way up to a month of living expenses, then a few months.
• Pay down debt. If you have credit card balances, start with the lowest one and throw a little more at it each month until it’s gone. Then tackle the next-highest balance. If you don’t have credit card debt, look at student loans or a car loan. The sooner you can pay off these debts, the more money you’ll be able to save.

Invest For The Long-Term

Set aside three to six months’ salary in a savings account for a rainy day. This will come in handy if you lose your job as well as for unexpected expenses and emergencies like a trip to the ER or a big car repair. Keep your emergency funds in cash in an FDIC-insured savings account.

• Take advantage of compound interest as soon as you can. Earn interest on the interest you receive by adhering to a disciplined investing plan.
• Don’t make any drastic financial changes right now if it’s not necessary. Instead, focus on saving aggressively and putting any extra money towards retirement.
• Keep savings in cash or CDs so the funds are readily available for any significant expenses or purchases you will make in the near future.

Practice Dollar-Cost Averaging

This is an investment strategy* in which assets are purchased regularly at a fixed dollar amount. For example, 401(k) plans use dollar-cost averaging by making regular purchases according to the participant’s pay schedule and contribution. As a result, investors could end up buying certain investments at a discount during periods of market underperformance.

*Dollar-cost averaging is a method of helping to control risk. It does not assure a profit or the avoidance of loss. Investors should consider their ability to continue a dollar-cost program in periods of declining markets.

In Your 40’s and 50’s, Get Out Ahead Of Market Volatility

This life stage includes the prime income-earning years when you’re likely to have the greatest savings power. Stash away as much cash as possible while it still has a few decades to compound.

Start Diversifying With Safer Investment Options

Diversify your portfolio* info safer investment options such as bonds, bond mutual funds, CDs, and Money Market Accounts. These options tend to be more stable as markets change, helping to protect your portfolio from dramatic ups and downs.

*Diversification is a method of helping to control risk. It does not assure a profit or the avoidance of loss.

Consider Additional Principal-Protecting Options

Consider an annuity or a life insurance policy, especially if you have a family that is dependent on your income. The younger and healthier you are, the more likely you are to qualify for a lower rate.

In your 60’s and Through Retirement

Now it’s time to create a more risk-averse investment strategy.

For those nearing or already entered into retirement, it’s essential to protect the assets that will carry you through the entirety of retirement. The best approach is to set up three buckets of investment money that can financially carry you through each phase of your retirement:

• 5-Year Bucket: Short-term income to fund immediate needs.
• Intermediate Bucket: This is for money invested in a moderate-risk portfolio that can continue to grow over the next 6 to 15 years.
• Long-Term Bucket: Finally, you have money that can be aggressively invested and won’t be touched for 16 years or more.

Build A Retirement Budget

The amount of money you need to live on in retirement depends on how much you’ve saved so far and what a “comfortable life” looks like for you.

Start by making a list of your current expenses. Include both fixed bills, such as housing costs, as well as discretionary spending for items like clothing, travel, entertainment, and so on.

How much of your salary are you living on now?

If you’re spending close to all of what you make now, it’s a good idea to “test run” your retirement by trying to scale back and only spend 70 percent or so of your income. Yes, you may drop some expenses in retirement (less spending on transportation, a paid-off house to live in) but other costs of living could rise (healthcare, property taxes). And if you want to enjoy travel, classes, and other leisure/enrichment activities that aren’t free, you’ll probably spend more on that in retirement and need to budget accordingly.

Have you saved enough?

A number of factors (some out of your control) will determine how much yearly cash your retirement savings provides. If you don’t feel like you have enough, don’t get dejected. Just keep focusing on saving. You can, on average, double your nest egg balance in the last ten years or so of your career. People age 50 and older are even permitted to make larger “catch-up contributions” to 401(k) plans and IRAs.

Seek Out Other Income-Producing Assets

The more streams of income you have, the better your overall financial stability will likely be. For example, many retirees take on part-time jobs to supplement their savings. This could relate to a passion or hobby, such as working in a garden store if you love plants, or teaching a class at the local community college to share your expertise from a long career.

Also consider income-producing assets such as real estate/investment properties, dividend-paying stocks, and/or variable annuities.

Best Practices For All Life Stages

• Don’t make any spontaneous decisions or changes. Talk to your financial advisor to discuss your financial goals and concerns before making any rash decisions, especially decisions related to retirement savings or investments.
• Don’t make early withdrawals. If you take an early withdrawal from your 401k before age 59.5, you’ll pay ordinary income taxes and a 10% penalty. Withdrawing money early also forfeits tax-advantaged growth and can trigger a higher tax bill.
• Get a financial planner. Professional financial managers can help you navigate the market turbulence and prevent you from making detrimental financial decisions during market volatility.
• Reassess and rebalance on a regular basis. Whether it’s quarterly, semiannually, or annually, make a standing appointment to review your investments and assets to ensure your finances are where you want them to be.

F&M Bank’s Osaic Institutions Investment Executives Can Help You Navigate the Market!

Whatever stage of life you’re in, our financial planners can help you understand your options and develop a strategy for your investment portfolio that matches your individual goals for retirement. Feel free to reach out with any questions you may have or schedule a consultation with an Osaic Institutions Financial Advisor at any of our locations in Staunton, Harrisonburg, and the greater Shenandoah Valley.

 

Investment and insurance products and services are offered through Osaic Institutions, Inc., Member FINRA/SIPC. F&M Financial Services is a trade name of F&M Bank. Osaic Institutions and F&M Bank are not affiliated.

Securities and Insurance Products:

Not Guaranteed by the Bank | Not FDIC Insured | Not a Deposit | Not Insured by Any Federal Government Agency | May Lose Value Including Loss of Principal

We hope that you remain healthy and safe as we endure this pandemic. COVID-19 has impacted everyone in our community in some way, but some financial relief is on the way. As individual economic impact payments from the CARES Act are distributed, we hope this serves as a helpful resource.

Electronic Deposit of Individual Economic Impact Payments

If you filed taxes in 2018 or 2019 and included your bank routing and account number for payments or refunds, and this information has not changed, the IRS has the information it needs to send your payment electronically.

If you file taxes, but the IRS does not have your direct deposit information, you can provide that online through the Get My Payment portal. This portal can also be utilized to check your payment status or confirm your payment type if you are unsure.

If you are not required to pay taxes, but want payment electronically deposited, you can sign up. The IRS and the U.S. Treasury launched this website where you can enter your information, including bank account details, to indicate where you would like your stimulus money deposited.

Paper Check Individual Economic Impact Payments

If instead of direct deposit, you receive a paper check in the mail, you may deposit it through the F&M Bank mobile app, or at any of our drive thru locations.

Social Security Recipients

The IRS will use direct deposit by the Social Security Administration to facilitate payments. If the direct deposit information you have provided in the past is for a bank-issued prepaid debit card, you will receive your funds on that card account.

As a reminder, the F&M Bank routing number is 051404419. To find your account number, please reference the bottom of your F&M Bank checks. It is the number listed directly beside the routing number we have included above.

Scams Related to Individual Economic Impact Payments

Although we are facing a pandemic, fraudsters are still at work. There will be a large amount of funds disbursed to qualifying individuals. Accordingly, there is a risk for fraud of various types. The IRS has announced various ways individuals can be on guard against these types of bad activities.

Do not provide any banking information to anyone claiming to be registering you for your relief payment. F&M Bank will never call, text or email you directly asking for personal information such as your account number. Even if your Caller ID indicates the call is from F&M Bank, it is better to be safe than sorry. Please, hang up immediately and call your local branch to inquire if the call was legitimate.

In a time of uncertainty and isolation we are all reaching for more information, especially from respected institutions such as the Centers for Disease Control (CDC), the World Health Organization (WHO) and respected hospitals and research facilities. But unfortunately cybercriminals are using the names of these institutions to lure unsuspecting individuals into fake offers, giving out personal information, and clicking on download links that can infect their computers. This can lead to fraud, identity theft and the loss of account information and passwords. As with all things related to the coronavirus outbreak, it pays to be vigilant.


In short, if you have accessed an online article, blog, or website that is not familiar, and you don’t feel 100% safe, do not click on offers or download documents, interactive maps or programs. This may be an attempt to introduce a malicious computer virus, ransom-ware or other program into your phone, tablet or PC for the purpose of collecting your personal information. If you click on a link and you are asked for permission to download, or give access to your photos, contacts, etc., think twice. Do you really understand what this program or app is going to do with the information you are providing? Like the coronavirus we need to be very careful about the things that we virtually touch and what we allow to touch us!


See below two recent articles from the Federal Trade Commission about coronavirus scams:

Avoid Coronavirus Scams

Types of Coronavirus Scams


As always, if you feel that you might be a victim of identity theft or you have a question about the safety of your accounts or your login information please contact us. We can help.

As people seek to file their tax returns this year, cybercriminals will be busy trying to take advantage of this with a variety of scams. Citizens may learn they are victims only after having a legitimate tax return rejected because scammers already fraudulently filed taxes in their name. According to the Internal Revenue Service (IRS), there was a 60% increase in 2018 in phishing scams that tried to steal money or tax data. The IRS identified 9,557 fraudulent tax returns as of only February 24^th, 2018 for the last filing season. As everyone aims to file their returns among all this fraud, the following advice will explain how tax fraud happens and provide recommendations on how to prevent it from happening to you or how to get help if you are unfortunately affected by a tax scam!

How is tax fraud perpetrated?

The most common way for cybercriminals to steal money, financial account information, passwords, or Social Security Numbers is to simply ask for them. Criminals will send phishing messages often impersonating government officials and/or IT departments. They may tell you a new copy of your tax form is available. They may include a link in a very official looking email that goes to a website that uses an official organization’s logo and appears legitimate, yet is fraudulent. If you attempt to login into the false website, or provide any personal information, the criminals will see what you type and try to use it to compromise your other accounts and file a false return in your name.

Additionally, much of your personal information can be gathered online from sources like social media or past data breaches. Criminals know this, so they gather pieces of your personal information from a variety of sources and use the information to file a fake tax refund request! If a criminal files a tax return in your name before you do, you will go through the arduous process of proving that you did not file the return and subsequently correcting the return.

Criminals also impersonate the IRS or other tax officials, demanding tax payments and threatening you with penalties if you do not make an immediate payment. This contact may occur through websites, emails, or threatening calls or text messages that seem official but are not. Sometimes, criminals request their victims to pay “penalties” via strange methods like gift cards or prepaid credit cards. It is important to remember that the IRS lets citizens know it will not do the following:

• Initiate contact by phone, email, text messages, or social media without sending an official letter in the mail first.
• Call to demand immediate payment over the phone using a specific payment method such as a debit/credit card, a prepaid card, a gift card, or a wire transfer.
• Threaten you with jail or lawsuits for non-payment.
• Demand payment without giving you the opportunity to question or appeal the amount they say you owe.
• Request any sensitive information online, including PIN numbers, passwords or similar information for financial accounts.

How can you protect yourself from tax fraud?

• File your taxes as soon as you can…before the scammers do it for you!
• Always be wary of calls, texts, emails, and websites asking for personal or tax data, or payment. Always contact organizations through their publicly-posted customer service line. If they contact you end the call and call the organization on the phone number on their website. As mentioned previously, the IRS will initiate contact on these issues by mail through the postal service.
• Don’t click on unknown links or links from unsolicited messages. Type the verified, real website address into your web browser.
• Don’t open attachments from unsolicited messages, as they may contain malware.
• Only conduct financial business over trusted sites and networks. Don’t use public, guest, free, or insecure Wi-Fi networks.
• Use strong, unique passwords for all your accounts and protect them. Reusing passwords between accounts is a big risk that allows a breach of one account to affect many of them!
• Shred all unneeded or old documents containing confidential and financial information.
• Check your financial account statements and your credit report regularly for unauthorized activity. Consider putting a security freeze on your credit file with the major credit bureaus. This will prevent identity thieves from applying for credit or creating an IRS account in your name.

If you receive a tax-related phishing or suspicious email at work, report it according to your organization’s cybersecurity policy. If you receive a similar email on your personal account, the IRS encourages you to forward the original suspicious email as an attachment to its phishing@irs.gov email account, or to call the IRS at 800-908-4490. More information about tax scams is available on the IRS website and in the IRS Dirty Dozen list of tax scams.

If you suspect you have become a victim of tax fraud or identity theft, the Federal Trade Commission (FTC) Identity Theft website provides a step-by-step recovery plan. It also allows you to report if someone has filed a return fraudulently in your name, if your information was exposed in a major data breach, and many other types of fraud.

Content from the Community Institution and Association’s Cyber-Tip Newsletter