Scheduling a monthly financial health check is a practical way to keep your finances in check. Just like a regular medical checkup, it helps you assess your financial situation and identify areas for improvement.

So, what does this checkup look like? First off, you’ll want to take a good look at your budget. Where’s your money coming from and where’s it going? Are you spending more than you’re earning? This is your chance to spot any sneaky expenses that might be draining your bank account.

Next, tackle debt. Make a list of what you owe and the interest rates on each debt. This info is golden when it comes to figuring out which debts to pay off first. Don’t forget about your credit report. It’s a good idea to give it a once-over at least yearly. Your credit score can affect everything from loan approvals to interest rates, so it’s worth keeping an eye on.

Setting financial goals is another key part of your checkup. Maybe you’re saving for a house or thinking about retirement. Whatever your goals, make sure they’re realistic and fit your current life situation. If you’re feeling a bit lost, don’t be afraid to chat with a financial advisor. They can offer personalized advice and help you stay on track.

Remember, these regular checkups aren’t just about avoiding money troubles. They’re about giving you the power to make smart choices with your cash. By keeping tabs on your finances monthly, you’re setting yourself up for a healthier financial future. It might take a bit of effort, but it’s worth it in the long run.

Still have questions, talk with an RCB Bank Banker or Wealth Advisor today.

The opinions expressed above are the personal opinions of the author and meant for generic illustration purposes only. RCB Bank. Member FDIC. 

Succession planning is crucial for preserving family farms and ranches across generations. It involves creating a strategic roadmap to ensure a smooth transition of assets, responsibilities and decision-making authority from one generation to the next. This process helps safeguard the legacy of the farm while preparing the next generation for leadership roles[2].

One of the primary goals of farm succession planning is to minimize conflicts and uncertainties within the family. By addressing these issues proactively, families can maintain harmony and unity, which are essential for the continued success of the farming operation[1]. Additionally, a well-structured succession plan can help manage financial aspects, such as estate taxes and capital gains, thereby optimizing financial resources for future generations[3].

Involving all family members in the planning process is vital. Open communication about the succession plan can help align the expectations and priorities of all parties involved. This includes discussing the roles and responsibilities of each family member and addressing any potential conflicts early on[3].

Legal and financial professionals play a key role in formalizing the succession plan. They can assist in structuring the transfer of assets through trusts or business entities like LLCs, which can provide liability protection and potential tax benefits[3]. Conservation easements are another tool that can ensure the land remains dedicated to agriculture, preserving the family’s farming legacy[4].

Ultimately, farm succession planning is an investment in the future of the family and the agriculture industry. By taking these steps, families can ensure their farm remains a thriving enterprise for generations to come[2].

If you are a ready or have questions about AG succession planning, an RCB Bank Farm and Ranch Representative would be happy to talk with you today on how to get started on your goals.

Opinions expressed above are the personal opinions of the author and meant for generic illustration purposes only. RCB Bank is a community bank with locations across Oklahoma and Kansas. Founded in 1936, RCB Bank is committed to serving its communities with conservative banking practices and progressive banking products. Investment products are not insured by FDIC. Not a deposit or other obligation of or guaranteed by the depository institution. Subject to investment risk, including possible loss of the principal amount invested. Wealth advisors do not provide tax, legal or accounting advice. Seek advice from a professional tax consultant. Learn more at RCBbank.bank or give us a call at 855.BANK.RCB.

Sources:

[1] https://www.hertz.ag/farm-management/succession-planning

[2] https://www.fbfs.com/learning-center/what-you-need-to-know-about-farm-succession-planning

[3] https://legacyassuranceplan.com/articles/beneficiary/how-to-pass-down-family-farm 

[4] https://www.eidebailly.com/insights/articles/2024/8/family-farm-succession

What happens to your life insurance, 401(k), savings and checking accounts if something happens to you? If you have listed payable on death (POD) beneficiaries for all your eligible accounts, it can be a relatively straightforward process for your beneficiaries to receive distributions of these benefits. A POD beneficiary is one or more persons or entities that you designate as the recipient of your account benefits or assets in the event of your death.

When planning a Will, please keep in mind that beneficiary designations will generally override estate plan instructions such as Wills/Trusts. Be sure to talk with your accountant or financial advisor before designating a beneficiary, especially when naming a trust or estate as your beneficiary on an Individual Retirement Account (IRA).

But what happens if you have not designated any beneficiaries? Unfortunately, your family may face the burden of settling your estate through probate court, which can be a complicated, costly and lengthy process. It is important to note that a beneficiary only benefits when all account owners are deceased. Naming one or more beneficiaries ensures that your assets go directly to the charity or person(s) you choose, bypassing the probate process.

Setting a beneficiary to your accounts can be important as it may allow them to cover certain final expenses, such as funeral arrangements. This is a small step that provides peace of mind knowing your assets will be handled according to your wishes.

Protect your assets and help keep the hardship of your passing more manageable for your family members and loved ones.

Simple steps now can help save your family members from additional burdens in the event of your death.  Take care of the people that matter the most and declare or update your beneficiaries today!

The opinions expressed above are the personal opinions of the author and meant for generic illustration purposes only. For specific questions regarding your personal lending needs, please call RCB Bank at 855-BANK-RCB. RCB Bank is a member FDIC.

Crop insurance is one of the best tools available today to manage financial risk in the agriculture industry due to the unpredictability of mother nature. This type of insurance provides a safety net for protecting farmers from financial loss caused by events beyond their control called “covered perils.” Such events are droughts, floods, storms, fires, pests, disease and even market fluctuations.

Historically, crop farmers only purchased Hail Insurance, then in 1980 the Federal Crop Insurance Act was established. Federal Crop Insurance was designed to protect a guaranteed yield based on historical yields of a farm; this is also called yield based. The industry changed dramatically in 1996 when a product called Crop Revenue Coverage was designed and brought to market.

Crop Revenue Coverage allowed a farmer to protect not only their yield but it placed some protection on the respective commodity prices; this is also called revenue based. The new coverage also gave the farmer the ability to “lock in” a Revenue Guarantee on each acre that is produced. This became a major game changer in U.S. grain production.
When farmers invest in insurance for crops, whether FDA backed or private sector, they have helped mitigate certain risks by providing financial compensation support, which can be the difference between recovery or financial disaster. Furthermore, crop insurance also supports the food industry. By protecting farmers’ incomes and livelihoods, it ensures a more stable food supply. This stability benefits not only farmers, but also consumers by maintaining consistent availability and pricing of food products.

Crop production is a risky business, but with the right crop insurance you have a greater chance of having a more profitable outcome as a landowner. If you are a landowner who is leasing their property for share crop leases, an RCB Bank Farm and Ranch Representative would be happy to talk with you today on how to meet your goals.

Opinions expressed above are the personal opinions of the author and meant for generic illustration purposes only. RCB Bank is a community bank with locations across Oklahoma and Kansas. Founded in 1936, RCB Bank is committed to serving its communities with conservative banking practices and progressive banking products. Investment products are not insured by FDIC. Not a deposit or other obligation of or guaranteed by the depository institution. Subject to investment risk, including possible loss of the principal amount invested. Wealth advisors do not provide tax, legal or accounting advice. Seek advice from a professional tax consultant. Learn more at RCBbank.bank or give us a call at 855.BANK.RCB.

Sources:
Crop Insurance 101: The Basics | Market Intel | American Farm Bureau Federation (fb.org)
History of the Crop Insurance Program (usda.gov)

It’s easy to get caught up in day-to-day affairs and inadvertently let important dates creep up on you. One critical date to keep aware of is the annual tax filing deadline – which is different this year from the typical due date.

According to the Internal Revenue Service (IRS), the filing deadline to submit 2022 tax returns or an extension to file and pay tax owed is Tuesday, April 18, 2023, for most taxpayers. By law, holidays in Washington, D.C. impact tax deadlines for everyone in the same way as federal holidays. The due date is April 18, instead of April 15, because of the weekend and the District of Columbia’s Emancipation Day holiday, which falls on Monday, April 17.

Taxpayers requesting an extension will have until Monday, October 16, 2023, to file.

The IRS has recommendations to keep in mind during tax season at its website (IRS.gov), including tips on what information you should have ready before filing. The IRS says it anticipates most taxpayers will receive their refund within 21 days of when they file electronically if they choose direct deposit and there are no issues with their tax return.

Source:

https://www.irs.gov/newsroom/irs-sets-january-23-as-official-start-to-2023-tax-filing-season-more-help-available-for-taxpayers-this-year

If you’re new to investing and looking for a place to start, a certificate of deposit may be what you’re looking for. Or if you’ve been investing for some time, a certificate of deposit can be one of the many tools you can use to help you toward retirement.

Certificates of deposit – otherwise known as CDs – are considered to be one of the safest saving options, according to the U.S. Securities and Exchange Commission.

CDs can give you a place to keep your cash safe and potentially earn a higher interest yield than a savings account.

But before deciding to invest in a CD, keep in mind you should use money that you’re not counting on to use for anything else. For instance, you shouldn’t put your emergency savings funds into a CD.

That’s because with a CD, you commit to keeping your money untouched for a set amount of time – anywhere from 30 days up to 10 years or more, depending on the bank. There generally are penalties and fees if you withdraw your money before the term to which you agreed expires.

When your term expires, you can roll your initial investment and earned interest into another CD, or you can cash it out.

Before getting a CD, make sure you understand all of the terms and carefully read the disclosure statement. Ask questions, and check out the answers with an unbiased source.

The guaranteed rate of return of a CD is enticing, but keep in mind that rate usually is low and oftentimes won’t always beat inflation.

One advantage of a CD can be the fact that you can’t withdraw it (without incurring penalties and fees), so say if you have a big expense coming up that you have the money set aside for – like a vacation, for instance – putting those funds in a CD can keep you from dipping into it, plus it will add money to your original amount invested.

Keep these tips in mind when if you decide to go with a CD:

• Minimum and maximum maturity terms.
• Minimum deposit requirements.
• Interest rates and annual percentage yield (APY).
• Early withdrawal fees and/or penalties.
• CD renewal policies.

The bottom line is this: Does a CD make sense for you? CDs can provide security and stability, but they likely won’t provide you with enough returns to build on your wealth.

Talk to a financial adviser to compare your options and help you determine what’s best for your situation.

Financially Fit is your home fitness guide for all things financial, provided by RCB Bank. Find money-building tips, insights and inspiration to help you improve your financial well-being at RCBbank.com/GetFit. Opinions expressed above are the personal opinions of the author and meant for generic illustration purposes only. Member FDIC.

Sources:

https://www.sec.gov/reportspubs/investor-publications/investorpubscertifichtm.html

https://www.investor.gov/introduction-investing/investing-basics/investment-products/certificates-deposit-cds

A retirement plan needs regular checkups to ensure it remains in good health. If you haven’t done it yet this year, you should set aside the time to do it before the start of the holiday season, which is usually the busiest time of the year.

According to the Center for Retirement Research at Boston College, 50% of households are “at risk” of not having enough to maintain their living standards in retirement.

Regular checkups of your retirement plan can keep you informed on whether or not you’re on pace to meet your monthly expenses once you retire and if you’ll be able to maintain your living standards.

You should check your contributions and account balances, and adjust accordingly. Also, if you have more than one retirement plan, check to see if it would be better to consolidate them, or if it’s best to keep them separate. If you have one retirement plan, check to see if it would behoove you to open another.

Depending on how close you are to retirement at the time of your “checkup,” you should consider shifting your investments around. If you’re close to retirement, a more conservative approach may be prudent to safeguard what you’ve accumulated. Conversely, if retirement is a ways away, a more aggressive approach may be in order.

No two paths to retirement are the same, so what works for one person won’t necessarily work for you. Consider talking to a financial advisor to help you map out your strategy and help you identify anything you may have overlooked on your self-checkup. That way you can get a plan that is catered specifically to your needs.

Financially Fit is your home fitness guide for all things financial, provided by RCB Bank. Find money-building tips, insights and inspiration to help you improve your financial well-being at RCBbank.com/GetFit. Investment products not insured by the FDIC. Not a deposit or other obligation of, or guaranteed by the depository institution. Subject to investment risks, including possible loss of principal amount invested. The information provided is for educational purposes only and does not constitute tax, investment or legal advice. Consult a professional wealth advisor to discuss your individual retirement savings needs.

Sources:

https://crr.bc.edu/special-projects/national-retirement-risk-index/

A cash windfall isn’t something for which you can plan ahead of time. It’s also not something you should ever count on. But knowing what to do if it happens can be extremely beneficial.

Should you spend it? Invest it? Pay off debt? All of the above?

Those answers will depend on the amount of money received and your financial situation. The answer will not be the same for everyone.

Windfall sizes can vary dramatically – from a small one that can help you eliminate a debt or allow for a  major purchase, to an even larger one that can make you financially independent, or to a size that may be more money than you could ever spend in your lifetime.

No matter the size of the windfall, the first thing you should do is resist the temptation to rush into anything – be it a purchase, an investment or even quitting your job. Formatting a plan before rushing into anything will help you avoid any regretful decisions. The most important tool you have when it comes to money is knowledge.

Secondly, separate the windfall from your usual accounts to avoid spending it. You could put it in a short-term CD or in a new interest-earning savings account until you come up with a plan. This will give you time to decide on how the windfall can serve you now and in the future.

It also would be wise to meet with a financial advisor. A financial advisor will help you map out the plan for your financial future and will help you get good use of the money. And if the windfall is big enough, they could help you plan for generations to come.

Together, you’ll assess your current financial situation and your financial goals and formulate a plan to put you on a successful path.

Coming into a significant amount of money may be cause for reason to celebrate, but it will be even more rewarding if you have a plan on what to do with the unexpected money. If you’re fortunate enough to have unexpected money come your way, don’t miss out on the opportunity to get ahead.

Financially Fit is your home fitness guide for all things financial, provided by RCB Bank. Find money-building tips, insights and inspiration to help you improve your financial well-being at RCBbank.com/GetFit. Opinions expressed above are the personal opinions of the author and meant for generic illustration purposes only. RCB Bank, Member FDIC.

What is a Money Market account?

A money market account is an interest bearing account that typically earns higher interest than a traditional savings account. The advantage of a money market savings account is the ability to earn a higher interest rate, insurance protection and the ability to write checks and use a debit card. Banks generally require a minimum balance to be met when you open a money market account and will impose fees if the amount in the account falls below the minimum.

What are the benefits of a Money Market account?

Besides debit card and check writing privileges, money market accounts offer a number of benefits.

• They allow for guaranteed earnings and FDIC insurance protection of up to $250,000 per depositor per account.
• Your money is also easily accessible and can be immediately withdrawn if you need it.
• Money market accounts also lack the risk of traditional investments.

When should I get a Money Market account? 

There are many situations when a money market account is a great savings option. If you have a short-term savings goal such as a home renovation, wedding, tax payments or funds for a new car, money market accounts are very useful. They can also be used to create an emergency fund since you have unlimited access to the money and it will accrue higher interest when not being used. It is useful to note that Money Market mutual funds are different from Money Market accounts and do not have the benefits of FDIC insurance.

Money Market vs. CD

Whether you choose a Money Market or CD (Certificate of Deposit) depends on your goals. While both accounts are FDIC insured, higher interest, low risk investments, there are some key differences. The main difference between a Money Market account and a CD is that you do not have regular access to your funds after opening a CD. If you choose a longer deposit period, you will get a better interest rate, however, you will be penalized if you pull the funds out early. If you have a longer-term financial goal, such as five or ten years, it may be better to secure a higher interest yield.

The key is to talk with a financial planner before making any decisions about your investment strategy. I am here to help, even if you are not an RCB Bank customer. Whether you are a customer or not, RCB Bank is here to help. Our wealth advisors can help with all of your questions about retirement investments. Give us a call at 855-226-5722.

Opinions expressed above are the personal opinions of Arnold Beevers and meant for generic illustration purposes only. For specific questions regarding your personal lending needs, please call RCB Bank at 855-BANK-RCB.RCB Bank is an Equal Housing Lender and member FDIC.

Imagine your retirement fund as the seat of a stool. Its stability depends on the construction of the legs. Put all the weight on one leg of the stool and you risk a wobbly future. Instead, use multiple funding sources to build a sturdier retirement savings plan. Depending on your desired lifestyle, we suggest saving between 10-20% of your salary to fund your retirement. Use this balanced approach to diversify savings.

First Leg: Employer Plan

If your employer retirement plan offers a match, fund this account up to the full match if not more. If your employer does not offer a match, you will want to contribute more money toward this account.

Second Leg: Social Security

Social Security benefits can vary drastically depending on how long you work, the amount you earn during your highest earning years and when you elect to claim your benefits. The generation retiring now is receiving about 35-40% of their former salary in the form of Social Security benefits.

Third Leg: Personal Savings

This may include savings accounts, IRAs, CDs, investment accounts and your home’s equity. While it is possible to build a solid three-legged stool, you may want to reinforce your retirement fund with a fourth leg.

Fourth Leg: Retirement Income

Income may be in the form of a rental property, part-time job or small home-based business. However you go about it, you have to sit on your retirement stool, so make it is sturdy enough to hold you during your retirement years. Find a wealth advisor you trust to help you plan a retirement savings strategy built for your individual lifestyle goals and needs.

Save now. Save often. Your future self will thank you.

We offer free portfolio reviews at no cost, no obligation. We’d be happy to take a look at your current portfolio and offer a second opinion to ensure you’re getting the most out of your investments.

Connect with an RCB Bank Trust Wealth Advisor in your area.

Invest in your retirement. RCBbank.com/GetFit

Opinions expressed above are the personal opinions of the author and meant for generic illustration purposes only. Investment products are not insured by FDIC or any government agency, Not a bank guarantee, Not a deposit, Subject to risk and may lose value.

Investing is a tool for building wealth.

Legendary investor Warren Buffett defines investing as “… the process of laying out money now to receive more money in the future.”

The key to successful investing is setting clear-cut goals. Know what you want, the cost to get it and how long you have to save.

We all have different comfort levels when it comes to investing our money. We call this risk tolerance. The concept of risk tolerance refers not only to your level of comfort in taking a risk, but also your financial ability to endure the consequences of loss.

Therefore, when it comes to investing, there is no one- size-fits-all strategy.  When I talk about investing with my clients, I like to use a bucket visualization. Imagine investing as three buckets.

Everyone needs to begin with a foundation – bucket one. This is your readily available cash, including your savings, emergency fund and short-term investments.

Once you have bucket one filled, you are ready to toss money into buckets two and three, your mid-term and long-term goals. The amount you invest in each bucket varies by your time horizon and risk tolerance. Bucket two consists of low-risk investments while bucket three is long-term, higher growth risk investments.

As with any plan, it is important to monitor your portfolio to ensure you stay on track with your goals.

If you plan to work with a financial advisor, make sure they are working for you with your best interest in mind. It’s important that you have an open line of communication with your advisor.

I am here to help answer questions you may have about investing even if you are not an RCB Bank customer. Feel free to contact me, my information is at the bottom of this page.

At RCB Bank Trust, we offer professional recommendations at no cost, no obligation.

We provide a conservative approach to growing and preserving wealth tailored to your individual financial needs. Call one of our wealth advisors today and request your free review.

We offer free portfolio reviews at no cost, no obligation. We’d be happy to take a look at your current portfolio and offer a second opinion to ensure you’re getting the most out of your investments. Connect with a wealth advisor in your area.

The bucket concept was originally created by planning guru Harold Evensky. It is one of many approaches to investing.

Investment products are not a deposit. Not insured by the FDIC or any federal government agency. Not guaranteed by the Bank. Subject to risk and may go down in value.

Opinions expressed above are the personal opinions of the author and meant for generic illustration purposes only. Investment products are not insured by the FDIC. Not a deposit or other obligation of, or guaranteed by the depository institution. Subject to investment risks, including possible loss of the principal amount invested. Ask for details.

Recent news about dramatic declines in the Dow Jones have been front and center lately.  While the “Dow” is often first quoted on the news, it is not a particularly good representation of the U.S. stock market.  It is just an index of 30 companies. Also, it is price-weighted, which means the companies with the highest stock price carry the most weight. The five companies that currently carry the greatest weight in the Dow are Boeing, Goldman Sachs, 3M, United Health Group, and Home Depot. However, none of these companies crack the top ten when looking at the largest companies in the U.S. by market capitalization.

Alternatively, the S&P 500 is an index of about 500 companies, making it a much broader barometer of the U.S. stock market.  Moreover, it is market-weighted, so the largest companies by market capitalization carry the greatest weight.

Headline vs. Reality

Headline: On February 5, 2018, the Dow experienced the largest point drop in history.

Reality: On February 5, 2018, the S&P 500 declined 4.10 percent, which ranks as only the 39th worst in the last 40 years.

Why has the stock market declined?

Believe it or not, the recent declines were prompted by good news.

January payroll reports show 200,000 workers were added to U.S. payrolls and, more importantly, average hourly wages increased 2.9 percent from January 2017. This was the highest level of year-over-year wage growth since June 2009. In anticipation of a strong jobs report and a pick-up in wage inflation, bond markets drove yields on the benchmark 10-Year U.S. Treasury bond sharply higher from a closing level of 2.63 percent on Thursday, January 25 to an intraday high of 2.88 percent on Monday, February 6. This sudden rise in market interest rates spooked equity investors in several ways. It could indicate both a faster pace of Fed rate hikes to keep up with inflation and an increase in borrowing costs for U.S. corporations.

What should I do about it?

I don’t get emotional about stock market swings.  Stock market swings are sometimes irrational.  Look to the fundamentals instead.  In my view, nothing has really changed in the last week from a fundamental or economic perspective. We believe the cyclical backdrop for stocks remains positive given synchronized global growth, rising corporate profits and relatively easy monetary conditions compared to history in the U.S. and abroad.

At RCB Bank Trust, we are conservative, long-term investors. 

We don’t try to time the market and we don’t overreact to headlines and short-term volatility. That being said, this is a great time to gut-check your risk tolerance and make sure your asset allocation is right.

We offer free portfolio reviews at no cost, no obligation. We’d be happy to take a look at your current portfolio and offer a second opinion to ensure you’re getting the most out of your investments. Connect with a wealth advisor in your area.

By Nate Haberman, AAMS^®, Financial Advisor

By the year 2040, it is projected that 14.6 million Americans will be 85 years old or older. This is triple in population from 6.5 million in 2014, according to the Administration of Aging¹.

Are you prepared financially to live longer? If you’re age 20 or older, retirement planning should be one of your top priorities. Not sure where to begin? I asked Nate Haberman, AAMS® Financial Advisor at RCB Wealth Management to share a few tips.

Figure out your retirement income needs.

Use your current expenses as a starting point. Don’t forget to factor in items like travel, new vehicles and healthcare expenses.

“A financial plan does not have to be complicated,” Haberman said. “Its purpose is to help you get from where you are to where you want to go, as well as improve the odds that you won’t outlive your money in retirement.”

Invest in your employer-sponsored retirement plan or an individual retirement account.²

Start now.

“It can be hard to plan for retirement when you are living paycheck to paycheck,” said Haberman. “But, a small amount is better than no amount. Setting aside a little bit each month will add up in the long run, especially if your employer matches a percentage of your contributions.”

Build an emergency fund.

Prepare for the unexpected and avoid tapping into your retirement savings.

“At one time or another, an expense will come up that you didn’t plan for – car repair or hospital visit,” said Haberman. “An emergency fund is there to help manage the financial risks of unforeseen expenses and potentially lessen some stress. Plus, early withdrawals from retirement accounts often have tax penalties assessed to them.”

Revise your plan along the way.

Life happens. Plan, prepare, review and adjust regularly in order to stay on track of your goals.

“A professional advisor can assist you through realistic expectations in your planning, while taking into consideration items like the age you plan to retire, inflation and taxes,” said Haberman. “A professional can walk you through all the available tools so you can better understand your options.”

While having a plan doesn’t guarantee a successful retirement, it may help you alleviate possible hardships, and allow you to live the life you want during your golden years.

Source:

¹U.S. Department of Health and Human Services Administration for Community Living. Administration of Aging Profile of Older Americans: 2015. Retrieved from http://www.aoa.acl.gov/aging_statistics/Profile/2015/2.aspx

²Investing involves risk, including the possible loss of principal and there can be no assurance that any investment strategy will be successful. Before investing, carefully consider the risks, charges and expenses of the investment.

Opinions expressed above are the personal opinions of the author and meant for generic illustration purposes only. This information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Investments mentioned may not be suitable for all investors. The material is general in nature. Past performance may not be indicative of future results.

Investment products are not insured by the FDIC. Not a deposit or other obligation of, or guaranteed by the depository institution. Subject to investment risks, including possible loss of the principal amount invested. Ask for details.