Tag Archives: Cash

7 Things You Didn’t Know About ITMs

Next time you are in a hurry and there is a line in the lobby, why not give one of Stock Yards’ ITMs a try? Interactive Teller Machines are located in several of our offices throughout Louisville, Cincinnati, and Indianapolis. Convenient and easy to use, ITMs can take care of your banking needs with a few simple steps. Here are 7 things you may not know about ITMs:

  1. Stock Yards’ first ITM opened in Louisville in the fall of 2014.
  2. Our three Virtual Service Associates are located out of a branch in Louisville.
  3. You can cash a check and receive exact change back – right down to the penny.
  4. You do not need a deposit ticket when using the ITM to make a deposit. There are several options to choose from, such as typing in an account or simply inserting a debit card.
  5. Stock Yards has ITMs at the following office locations:
    • 5th Street
    • Poplar Level
    • Highland Heights
    • Francis
    • Florence
    • St. Matthews
  6. All of the drive in ITM’s have dual functionality and are available to customers 24/7 as an ATM.
  7. Our virtual staff has over 25 years of combined experience at Stock Yards!

Budgeting 101

Rainy-day funds, savings for college, or just making your rent payment can all be made easier with a budget. Although a simple and oftentimes overlooked strategy, budgeting your finances will help make the difference in managing your money. Putting together a household budget requires time and effort. Stock Yards offers the following steps to create a budget:

• Be a Spending Sleuth. Track every penny you spend for a month. Keep receipts and write everything down. This will be an eye-opening experience and will help you see where you can cut back.

• Count Your Money. Determine the total amount of money coming in. Include only your take home pay (your salary minus taxes and deductions). Your income may also include tips, investment income, etc.

• Itemize, Categorize, and Organize. Review the records and receipts you’ve been collecting over the last month. Categorize your spending using a budget sheet. You can utilize the free templates in Microsoft Excel to create a budget sheet that is fit for you and your family.

• Achieve Your Goals. Set a realistic financial goal and develop your budget to achieve that goal. Subtract your monthly expenses from your monthly income. Find ways to cut spending and set limits on things like entertainment expenses.

• Save, Save, Save. Make one of your financial goals to save a certain dollar amount each month. Start an emergency fund if you don’t already have one. You never know when you may need it.

• Stick to it. Keep track of your spending every month. Update your budget as expenses or incomes change. Once you achieve your financial goal, set another.

Resource information provided by American Banker’s Association.

Save or Spend: 5 Ways to Make Your Refund Count This Tax Season

According to the Internal Revenue Service, the nation’s taxpayers received an average tax refund of nearly $3,000 in 2015. This year, with more than 70 percent of taxpayers receiving a refund, the American Bankers Association is highlighting five tips to help them make the most out of their windfall.

“Tax season is a great time for consumers to reassess how they allocate extra cash,” said Corey Carlisle, executive director of the ABA Foundation. “It’s wise to take steps toward securing your financial well-being like storing your refund for rainy days or using it to get a jumpstart on saving for retirement.”

To help consumers make the most out of their money, ABA has highlighted the following tips:

• Save for emergencies. Open or add to a savings account that serves as an “emergency fund.” Ideally, it should hold about three-to-six months of living expenses in case of sudden financial hardships like losing your job or having to replace your car. Click here for more information regarding Stock Yard’s account options.

• Pay off debt. Pay down existing balances either by chipping away at loans with the highest interest rates or eliminating smaller debt first.

• Save for retirement. Open or increase contributions to a tax-deferred savings plan like a 401(k) or an IRA. Where can you get one? Stock Yards can help set up an IRA, while a 401(k) is employer-sponsored.

• Put it toward a down payment. The biggest challenge that most first-time home buyers face is coming up with enough money for a down payment. If you intend to buy a new home in the near future, putting your tax refund toward the down payment is a smart move.

• Invest in your current home. Use your refund to invest in home improvements that will pay you back in the long run by increasing the value of your home. This can include small, cost-effective upgrades like energy-efficient appliances that will pay off in both the short and long term. If you have more substantial renovations in mind, your bank can help with a home equity line of credit. Click here for more information on how to make the most of your investment.

Resource information provided by American Bankers Association

Giving Thanks & Giving Back

The holidays are often a time where we reflect upon our lives, give thanks for what we have, and look to give back to those in need. This time provides us the opportunity to evaluate the year and make our resolutions for the next. And ideally, your investments should fall somewhere in this process of reflection. After all, your portfolio, if planned well, can be a gift that has the potential to keep on giving, to you and the ones you love for many years to come. To help get you started this year, here are a few year-end investment tips that are always important to remember.

Evaluate your goals. What are the goals for your financial assets? Are they all achievable? Have they changed since last year? Sometimes these questions are the most difficult to answer, yet they are the most important. Alongside your time horizon, cash flow needs and tolerance for risk, these questions are the basis for your financial plan. And if you don’t have any investment goals or a financial plan, now is an excellent time to create one. Having a plan in place that is properly aligned with your goals gives you the best chances to succeed.

Review your diversification and harvest losses carefully. With the recent volatility in the markets, you’re probably looking to sell some underperformers in your portfolio and harvest some tax losses.  Be careful not to chase heat.  It can be easy to sell what’s done poorly and reinvest in what’s done well.  But no one investment style or category leads forever.  Stick to your benchmark and maintain your diversification.  And if your benchmark contains a 5% weighting in energy you should have close to that invested in energy as well (not 0%, but also not 20% – each of those carries too much risk).  Whether you think any one stock, sector, or fund still has room to rise or fall, remember you can always be wrong.  Even the best investors are often wrong about timing.  You don’t want to be caught on the wrong side.

Focus on your total return. Most investors want to compare their portfolio’s overall performance to how each individual investment performed. They want each individual stock, bond or fund to perform as well or better than the whole. But this isn’t how portfolio construction should work. There should always be stocks in your portfolio that perform vastly different from each other, and similar to their respective categories. If they don’t then you’re probably taking too much risk. Review the point above. This is the concept of diversification and it is immeasurably important to meeting those financial goals. Don’t always look to sell the underperformers. Focus on the total return.

Donate Stock, Not Cash. Finally, for those whose year-end goals include making donations to the charitable organizations you support, consider donating appreciated stock instead of cash.  It’s easier than you may think and saves you money.  Say you own a stock for which you paid $1,000 that’s now worth $2,500.  If you sell that stock, you’ll have to pay taxes on the $1,500 gain.  If you have a 33% combined tax rate, that’s $500 you’ll owe just to the government, leaving only $2,000 for the charity. Yet if you donate the stock, you will owe no taxes and the charity receives $2,500, and you have a $2,500 tax deduction.  A win-win for you and your favorite charity!

We hope you had a great year and we look forward to working with you in 2016. From all of us here in the Stock Yards Bank & Trust Wealth Management Group, Happy Holidays!