Letter From the President
! o g
In today’s world, paying and receiving money can be a bit of a hassle. Starion Financial now offers an innovative personal payment system called Popmoney, which allows you to send and receive money through email or text.
• Sending money by email/mobile phone number:
Whether you are sending money to a child at college, paying a babysitter or paying rent, Popmoney is an easy and convenient way to send and receive money. All you need to send money is the recipient’s account information (routing and account number), email address or mobile phone number. Using Popmoney through Starion’s Online Banking costs only $0.50 per payment made. That is considerably less than spending money on gas to run to an ATM or continuing to buy checks and stamps.
• Sending money directly through the account number: If you choose to deposit money directly into
If you choose to send the money using the recipient’s email address or mobile phone number, he/she will receive an email or text message with instructions on how to deposit the payment into his/her account.
the recipient’s account, you will simply need to inform him/her of the pending transaction so that he/she is aware that you have sent money.
After the transaction has been accepted by the recipient, the money will be available within three business days, if not sooner. Popmoney is fast, secure and convenient for everyone involved. Please contact us with any questions!
WINTER 2013
Financial news to take you farther
This publication does not constitute legal, accounting or any other professional advice. Although intended to be accurate, neither the publisher nor any party assumes liability for loss or damage due to reliance on this material. Copyright ©2013 Starion Financial.
Questions? Contact: marketing@starionfinancial.com
Find us on Facebook Get more great tips and bank updates when you 'Like' us on Facebook at www.facebook.com/starionfinancial.
Bismarck, ND 333 N 4th St (701) 223-6050
Mandan, ND 109 1st St NW (701) 663-6434
Dunseith 11 Main Street NE (701) 244-5795
Ellendale, ND 100 Main St (701) 349-3213
2900 N Washington (701) 250-1550
Fargo, ND Urban Plains 2754 Brandt Dr S (701) 281-5600
Rolla 101 1st Street SE (701) 477-8890
Oakes, ND 601 Main Ave (701) 742-2112
Bottineau 1804 11th Street E (701) 228-3750
Middleton, WI 1651 John Q Hammons Dr (608) 829-3050
1000 S Washington (701) 250-1500 Starion Plaza 1300 Skyline Blvd & Hwy 83N (701) 250-1540
2525 S University Dr (701) 281-5650
Member FDIC
.................................................
Living in North Dakota, we are blessed to have a thriving economy. Despite the drought in some regions of the state, we were fortunate to see an increase in the production of many crops this year, with an outstanding 80% increase in corn production over 2011. North Dakota continues to have the lowest unemployment rate in the nation, 3.1% versus the national average of 8.2%. All across the country, people are migrating to North Dakota hoping to find a good, steady job. The oil boom has helped to keep our unemployment rate at a fouryear low. The Bakken Shale development alone makes a $20 billion impact on the ND economy. This increase in revenue has benefited nearly every industry in the state and has helped many citizens to find and maintain financial stability. As an organization, we are located in prosperous markets. Starion Financial’s roots are in North Dakota, beginning with our first branch in Oakes in 1969. We have seen this state flourish, and we’ve seen it go through tougher times as well. We’ve monitored the progress we’re making as a state and will continue to run our organization by following the conservative business practices on which we’re established. We will continue to celebrate the success of North Dakota along with the rest of its proud residents, and we will remain your loyal and trusted advisors.
Craig Larson President & CEO
! go
WINTER 2013
Financial news to take you farther
Are you taking full advantage of your IRA opportunities? Individual Retirement Accounts (IRAs) are one of the most powerful and flexible tools to accumulate funds for retirement. The keys to maximizing the ultimate value of your IRA are simple – contribute as much as you can, contribute as early as you can and earn as much as you can. Here are four ways to put those keys to work.
Make contributions Everyone with earned income (wages) is eligible to contribute up to $5,000 to an IRA for 2012. You can contribute to a regular IRA regardless of your income. It may be tax-deductible if you are not a participant in a company sponsored plan or if your 2012 adjusted income is below certain levels ($58,000 for those filing single tax returns and $92,000 for those filing jointly). For 2013, the contribution limit is $5,500 and the deductibility limits are adjusted gross income of $59,000 for single filers and $95,000 for those filing jointly. Roth IRA contributions are not deductible, but can be made by those with 2012 adjusted gross income up to $110,000 (single) or $173,000 (filing jointly). For 2013, the adjusted gross income limits are $112,000 (single) or $178,000 (filing jointly).
Take advantage of the catch-up provision For the past several years, individuals age 50 and above have been eligible to contribute extra amounts to their IRAs. For 2012 and 2013, those individuals can contribute an extra $1,000 to their IRAs.
Make contributions early The earlier you make contributions, the earlier your money begins earning on a tax-deferred basis. The latest you can make 2012 contributions is April 15, 2013 (or the extended due date of your tax return). The earliest you can make 2013 contributions is January 1, 2013. By making your contribution early, you are more likely to make an extra contribution over your working career and it adds up.
Invest your IRA wisely Your IRA is, or will become, a significant part of your net worth. How it is invested deserves the same attention you give your other investments. Be sure to include your IRA in your overall investment planning and apply the same principles of asset allocation, diversification and risk tolerance. Because the funds in your IRA will remain there for extended periods of time, you should take a long term approach with how the funds are invested. If you choose a lower risk fixed income approach, consider longer term CDs instead of shorter-term savings accounts or money market funds. If you are considering equity investments, remember these funds will have many years to grow and choose wisely. You will ultimately be responsible for your retirement, and the decisions you make on managing your investments are important. Doing your homework and using the services of a qualified professional can make a large difference. Visit with a Starion Financial IRA consultant to develop a retirement plan that suits your needs. Cetera Investment Services LLC is an independent, registered broker/dealer. Member SIPC/FINRA. Securities and insurance products offered by Cetera: Not FDIC insured • May go down in value • Not financial institution guaranteed • Not a deposit • Not insured by any federal government agency.
BISMARCK, ND PERMIT NO. 433
PA I D
PRESORT STD U.S. POSTAGE
STARION FINANCIAL
TAKING YOU FARTHER
Contributing to Community Causes
7 S TEPS to Simplify Your Finances
Starion Financial donated more than $350,000 to community organizations, programs and events in the communities it serves in 2012.
Handling your finances doesn’t have to be as complicated as it may seem. Here are seven ideas to save time and reduce the stress and anxiety of managing your financial affairs.
Major donations throughout the year include $10,000 to Shiloh Christian School, $10,000 to Saint Baldrick’s Foundation, $25,000 to University of Mary, $7,500 to United Way of Cass Clay and $10,500 to Sleepy Hollow Performing Arts Park. Starion Financial also made significant contributions to the Lewis and Clark Fort Mandan Foundation, BSC Community Bowl, Northern Plains Dance, Bismarck-Mandan Chamber of Commerce, Bismarck Parks and Recreation District, ND 4-H Foundation, Henry Vilas Zoo, Fargo-Moorhead-West Fargo Chamber of Commerce, Ducks Unlimited, United Way of Dane County and ND Natural Resources Trust. Starion Financial has donated to many other community organizations and events as well. In addition to monetary support, Starion Financial is dedicated to personal contribution and responsibility to the communities it serves. “Starion Financial takes a stake in the success of our customers and communities,” Craig Larson, President and CEO told. “We invest our time and resources to ensure the long-term survival and success of the communities we serve.”
Does debt consolidation make sense for you? Evaluating the debt consolidation alternatives can get a bit complicated for anyone. Here are a few tips to help make the process a little smoother, and to get you out of debt more quickly. Even if you have not borrowed the maximum allowed for your credit card, paying down your balance should be one of your top priorities. • Pay more than the minimum on your credit card balance. Interest rates charged on most credit cards are usually much higher than those found on other loans. • Making your credit card payment as soon as you get the statement will help reduce the interest you are charged. • Minimize your credit card usage for a period. Along with not subjecting higher balances to interest, using cash may help you identify ways to spend less. Start by reviewing the interest rates on your existing debts. Credit cards and unsecured personal loans usually have higher interest rates than other forms of secured debt like a mortgage, home equity loan or an auto loan. If you find that your rate on a home equity line of credit is less than the rates on credit cards, other personal loans or auto loans, utilizing borrowing through that line of credit may save you money. Then evaluate your borrowing capacity available through a mortgage or a home equity loan. Borrowing through a shorter-term home equity loan will probably lower your interest rate, but most home equity loans have variable interest rates. If you have a great deal of high interest rate debt, increasing the size of your fixed rate
2
mortgage with a refinancing (even if you end up with a slightly higher mortgage rate than what you currently have) may result in lower overall interest costs. The interest you pay on your mortgage or home equity loan is also tax deductible if you itemize your deductions. When considering consolidating your debt, use common sense. Remember that borrowing money means you have to repay it. If your borrowing is too high, take immediate steps to reduce it. Every dollar of debt reduction will translate into less interest you have to pay. For assistance with managing your debt, visit with one of our bankers at any of our locations. Let us help you take the next steps towards debt reduction.
Consider Refinancing Regardless of Rates If you are like most people, your home is your most valuable financial asset and your mortgage is your largest debt. Consequently, periodically examining your existing mortgage and potential mortgage options makes sense. As part of this review, be sure to include four factors – interest rate, type of mortgage, your plans and tax consequences. Today’s mortgage rates are at record lows. If you did not refinance, or get your original mortgage, during the last period of low rates, it would be beneficial for you to compare your current rate with the rates today. Interest rates charged on mortgages vary greatly depending on the type of mortgage. Fixed rate mortgages offer the benefit of locking in a rate and knowing exactly what your payments will be for the term of the mortgage. Generally, the longer the term, the higher the rate. Adjustable rate mortgages (ARMs) usually offer lower rates, but the rate may be revised periodically. Usually, ARMs with shorter initial rate terms offer lower interest rates than those with longer initial interest rate terms. A 1-year ARM might have a 4% rate compared with 4.75% for a 5 year ARM. When reviewing your mortgage options, be sure to factor in how long you intend to keep your home as well as your ability to handle potentially higher rates in the future with ARMs. If you plan to downsize and move to a smaller home in a few years, a 5-year ARM would provide a much lower interest rate than a traditional 15 or 30 year fixed rate mortgage. You owe it to yourself to “run the numbers” and determine if refinancing with a different type of mortgage could benefit you. You can even use our mortgage calculator available on our website, starionfinancial.com. If you itemize your tax deductions, the interest you pay on your mortgage or a home equity loan may be deductible. Refinancing your mortgage and taking cash out or borrowing through a home equity loan or a second mortgage may provide the money to pay off higher rate loans, such as credit cards or auto loans, and provide a tax deduction as well. No one knows whether interest rates are going up or down in the future. However, you should know that today’s interest rates are low compared to rates a few years ago. Be sure to examine your mortgage in light of today’s rates and make sure your mortgage aligns with your plans.
Get Starion news in your inbox Get valuable financial information, product updates, events, and news from Starion Financial in our e-newsletter. Sign up at www.starionfinancial.com/signup and receive relevant, concise information to help you in your financial life.
1. Enroll in direct deposit. It’s both convenient and safe. 2. Establish an automatic savings plan. Regular, automatic transfers to a savings account will add up. 3. Use online bill pay. Avoid late payments and eliminate the task of writing checks. 4. Enroll in mobile banking. Check account balances and make transfers on the go. 5. Consolidate your financial relationships. Dealing with one institution makes everything easier. 6. Build a safety cushion. Be ready for unexpected expenses, or use some of the extra money you’ve saved for a special vacation. 7. Review your investments. Make sure your asset allocation matches your time horizon and risk tolerance.
STARION FINANCIAL
TAKING YOU FARTHER
Contributing to Community Causes
7 S TEPS to Simplify Your Finances
Starion Financial donated more than $350,000 to community organizations, programs and events in the communities it serves in 2012.
Handling your finances doesn’t have to be as complicated as it may seem. Here are seven ideas to save time and reduce the stress and anxiety of managing your financial affairs.
Major donations throughout the year include $10,000 to Shiloh Christian School, $10,000 to Saint Baldrick’s Foundation, $25,000 to University of Mary, $7,500 to United Way of Cass Clay and $10,500 to Sleepy Hollow Performing Arts Park. Starion Financial also made significant contributions to the Lewis and Clark Fort Mandan Foundation, BSC Community Bowl, Northern Plains Dance, Bismarck-Mandan Chamber of Commerce, Bismarck Parks and Recreation District, ND 4-H Foundation, Henry Vilas Zoo, Fargo-Moorhead-West Fargo Chamber of Commerce, Ducks Unlimited, United Way of Dane County and ND Natural Resources Trust. Starion Financial has donated to many other community organizations and events as well. In addition to monetary support, Starion Financial is dedicated to personal contribution and responsibility to the communities it serves. “Starion Financial takes a stake in the success of our customers and communities,” Craig Larson, President and CEO told. “We invest our time and resources to ensure the long-term survival and success of the communities we serve.”
Does debt consolidation make sense for you? Evaluating the debt consolidation alternatives can get a bit complicated for anyone. Here are a few tips to help make the process a little smoother, and to get you out of debt more quickly. Even if you have not borrowed the maximum allowed for your credit card, paying down your balance should be one of your top priorities. • Pay more than the minimum on your credit card balance. Interest rates charged on most credit cards are usually much higher than those found on other loans. • Making your credit card payment as soon as you get the statement will help reduce the interest you are charged. • Minimize your credit card usage for a period. Along with not subjecting higher balances to interest, using cash may help you identify ways to spend less. Start by reviewing the interest rates on your existing debts. Credit cards and unsecured personal loans usually have higher interest rates than other forms of secured debt like a mortgage, home equity loan or an auto loan. If you find that your rate on a home equity line of credit is less than the rates on credit cards, other personal loans or auto loans, utilizing borrowing through that line of credit may save you money. Then evaluate your borrowing capacity available through a mortgage or a home equity loan. Borrowing through a shorter-term home equity loan will probably lower your interest rate, but most home equity loans have variable interest rates. If you have a great deal of high interest rate debt, increasing the size of your fixed rate
2
mortgage with a refinancing (even if you end up with a slightly higher mortgage rate than what you currently have) may result in lower overall interest costs. The interest you pay on your mortgage or home equity loan is also tax deductible if you itemize your deductions. When considering consolidating your debt, use common sense. Remember that borrowing money means you have to repay it. If your borrowing is too high, take immediate steps to reduce it. Every dollar of debt reduction will translate into less interest you have to pay. For assistance with managing your debt, visit with one of our bankers at any of our locations. Let us help you take the next steps towards debt reduction.
Consider Refinancing Regardless of Rates If you are like most people, your home is your most valuable financial asset and your mortgage is your largest debt. Consequently, periodically examining your existing mortgage and potential mortgage options makes sense. As part of this review, be sure to include four factors – interest rate, type of mortgage, your plans and tax consequences. Today’s mortgage rates are at record lows. If you did not refinance, or get your original mortgage, during the last period of low rates, it would be beneficial for you to compare your current rate with the rates today. Interest rates charged on mortgages vary greatly depending on the type of mortgage. Fixed rate mortgages offer the benefit of locking in a rate and knowing exactly what your payments will be for the term of the mortgage. Generally, the longer the term, the higher the rate. Adjustable rate mortgages (ARMs) usually offer lower rates, but the rate may be revised periodically. Usually, ARMs with shorter initial rate terms offer lower interest rates than those with longer initial interest rate terms. A 1-year ARM might have a 4% rate compared with 4.75% for a 5 year ARM. When reviewing your mortgage options, be sure to factor in how long you intend to keep your home as well as your ability to handle potentially higher rates in the future with ARMs. If you plan to downsize and move to a smaller home in a few years, a 5-year ARM would provide a much lower interest rate than a traditional 15 or 30 year fixed rate mortgage. You owe it to yourself to “run the numbers” and determine if refinancing with a different type of mortgage could benefit you. You can even use our mortgage calculator available on our website, starionfinancial.com. If you itemize your tax deductions, the interest you pay on your mortgage or a home equity loan may be deductible. Refinancing your mortgage and taking cash out or borrowing through a home equity loan or a second mortgage may provide the money to pay off higher rate loans, such as credit cards or auto loans, and provide a tax deduction as well. No one knows whether interest rates are going up or down in the future. However, you should know that today’s interest rates are low compared to rates a few years ago. Be sure to examine your mortgage in light of today’s rates and make sure your mortgage aligns with your plans.
Get Starion news in your inbox Get valuable financial information, product updates, events, and news from Starion Financial in our e-newsletter. Sign up at www.starionfinancial.com/signup and receive relevant, concise information to help you in your financial life.
1. Enroll in direct deposit. It’s both convenient and safe. 2. Establish an automatic savings plan. Regular, automatic transfers to a savings account will add up. 3. Use online bill pay. Avoid late payments and eliminate the task of writing checks. 4. Enroll in mobile banking. Check account balances and make transfers on the go. 5. Consolidate your financial relationships. Dealing with one institution makes everything easier. 6. Build a safety cushion. Be ready for unexpected expenses, or use some of the extra money you’ve saved for a special vacation. 7. Review your investments. Make sure your asset allocation matches your time horizon and risk tolerance.
Letter From the President
! o g
In today’s world, paying and receiving money can be a bit of a hassle. Starion Financial now offers an innovative personal payment system called Popmoney, which allows you to send and receive money through email or text.
• Sending money by email/mobile phone number:
Whether you are sending money to a child at college, paying a babysitter or paying rent, Popmoney is an easy and convenient way to send and receive money. All you need to send money is the recipient’s account information (routing and account number), email address or mobile phone number. Using Popmoney through Starion’s Online Banking costs only $0.50 per payment made. That is considerably less than spending money on gas to run to an ATM or continuing to buy checks and stamps.
• Sending money directly through the account number: If you choose to deposit money directly into
If you choose to send the money using the recipient’s email address or mobile phone number, he/she will receive an email or text message with instructions on how to deposit the payment into his/her account.
the recipient’s account, you will simply need to inform him/her of the pending transaction so that he/she is aware that you have sent money.
After the transaction has been accepted by the recipient, the money will be available within three business days, if not sooner. Popmoney is fast, secure and convenient for everyone involved. Please contact us with any questions!
WINTER 2013
Financial news to take you farther
This publication does not constitute legal, accounting or any other professional advice. Although intended to be accurate, neither the publisher nor any party assumes liability for loss or damage due to reliance on this material. Copyright ©2013 Starion Financial.
Questions? Contact: marketing@starionfinancial.com
Find us on Facebook Get more great tips and bank updates when you 'Like' us on Facebook at www.facebook.com/starionfinancial.
Bismarck, ND 333 N 4th St (701) 223-6050
Mandan, ND 109 1st St NW (701) 663-6434
Dunseith 11 Main Street NE (701) 244-5795
Ellendale, ND 100 Main St (701) 349-3213
2900 N Washington (701) 250-1550
Fargo, ND Urban Plains 2754 Brandt Dr S (701) 281-5600
Rolla 101 1st Street SE (701) 477-8890
Oakes, ND 601 Main Ave (701) 742-2112
Bottineau 1804 11th Street E (701) 228-3750
Middleton, WI 1651 John Q Hammons Dr (608) 829-3050
1000 S Washington (701) 250-1500 Starion Plaza 1300 Skyline Blvd & Hwy 83N (701) 250-1540
2525 S University Dr (701) 281-5650
Member FDIC
.................................................
Living in North Dakota, we are blessed to have a thriving economy. Despite the drought in some regions of the state, we were fortunate to see an increase in the production of many crops this year, with an outstanding 80% increase in corn production over 2011. North Dakota continues to have the lowest unemployment rate in the nation, 3.1% versus the national average of 8.2%. All across the country, people are migrating to North Dakota hoping to find a good, steady job. The oil boom has helped to keep our unemployment rate at a fouryear low. The Bakken Shale development alone makes a $20 billion impact on the ND economy. This increase in revenue has benefited nearly every industry in the state and has helped many citizens to find and maintain financial stability. As an organization, we are located in prosperous markets. Starion Financial’s roots are in North Dakota, beginning with our first branch in Oakes in 1969. We have seen this state flourish, and we’ve seen it go through tougher times as well. We’ve monitored the progress we’re making as a state and will continue to run our organization by following the conservative business practices on which we’re established. We will continue to celebrate the success of North Dakota along with the rest of its proud residents, and we will remain your loyal and trusted advisors.
Craig Larson President & CEO
! go
WINTER 2013
Financial news to take you farther
Are you taking full advantage of your IRA opportunities? Individual Retirement Accounts (IRAs) are one of the most powerful and flexible tools to accumulate funds for retirement. The keys to maximizing the ultimate value of your IRA are simple – contribute as much as you can, contribute as early as you can and earn as much as you can. Here are four ways to put those keys to work.
Make contributions Everyone with earned income (wages) is eligible to contribute up to $5,000 to an IRA for 2012. You can contribute to a regular IRA regardless of your income. It may be tax-deductible if you are not a participant in a company sponsored plan or if your 2012 adjusted income is below certain levels ($58,000 for those filing single tax returns and $92,000 for those filing jointly). For 2013, the contribution limit is $5,500 and the deductibility limits are adjusted gross income of $59,000 for single filers and $95,000 for those filing jointly. Roth IRA contributions are not deductible, but can be made by those with 2012 adjusted gross income up to $110,000 (single) or $173,000 (filing jointly). For 2013, the adjusted gross income limits are $112,000 (single) or $178,000 (filing jointly).
Take advantage of the catch-up provision For the past several years, individuals age 50 and above have been eligible to contribute extra amounts to their IRAs. For 2012 and 2013, those individuals can contribute an extra $1,000 to their IRAs.
Make contributions early The earlier you make contributions, the earlier your money begins earning on a tax-deferred basis. The latest you can make 2012 contributions is April 15, 2013 (or the extended due date of your tax return). The earliest you can make 2013 contributions is January 1, 2013. By making your contribution early, you are more likely to make an extra contribution over your working career and it adds up.
Invest your IRA wisely Your IRA is, or will become, a significant part of your net worth. How it is invested deserves the same attention you give your other investments. Be sure to include your IRA in your overall investment planning and apply the same principles of asset allocation, diversification and risk tolerance. Because the funds in your IRA will remain there for extended periods of time, you should take a long term approach with how the funds are invested. If you choose a lower risk fixed income approach, consider longer term CDs instead of shorter-term savings accounts or money market funds. If you are considering equity investments, remember these funds will have many years to grow and choose wisely. You will ultimately be responsible for your retirement, and the decisions you make on managing your investments are important. Doing your homework and using the services of a qualified professional can make a large difference. Visit with a Starion Financial IRA consultant to develop a retirement plan that suits your needs. Cetera Investment Services LLC is an independent, registered broker/dealer. Member SIPC/FINRA. Securities and insurance products offered by Cetera: Not FDIC insured • May go down in value • Not financial institution guaranteed • Not a deposit • Not insured by any federal government agency.
BISMARCK, ND PERMIT NO. 433
PA I D
PRESORT STD U.S. POSTAGE