Monthly Archives: March 2018

Are All Inclusive Vacations Worth It? Save Money on Your Next Trip

Has it just felt too long since your last vacation? Are you peeking around the corner to plan your perfect getaway? If so, then planning far in advance can help get you one step closer to sipping that Mai Tai on the beach for a fraction of the price. However, it can be challenging to know which avenue to take between the romanticized all- inclusive vacations or scouting it out on your own. It can be especially more difficult when your dream vacation is limited to a tight budget. You don’t want to end up eating more costs than planned.

All inclusives seem like a great idea if you want to know the exact costs before leaving. However, the biggest risk with them are the hidden costs, so be informed to make the best decision for your budget. We have considered the potential hidden costs of all inclusives, so you are able to make an informed decision that works for you!

Travel

This might seem like a no-brainer, but most all inclusive resorts will require a flight. If you are leaning towards a cruise, you will have travel time to the port, but from there will be reliant on the ship to get you to your many destinations. Any travel beyond will require an additional expense. Is your parking included once you arrive? The owners will pride their resorts as a place you will never want to leave, so additional travel should be minimal. However, if you prefer more spur of the moment adventures, this may not be for you.

Food & Drink

If a deal sounds too good to be true, it most likely is. Remember that discounts may be there for a reason. You will not be happy to find out upon arrival that half of the resort is under construction, so ask questions. At an all inclusive resort, the idea is that you don’t have to carry around cash or card once you get there. All of the drinks and meals should be 100 percent covered….within the limits of your packaged deal. However, you run the risk of having average food, with repetitive meals. Want that fresh lobster? There may be an additional price. For specialty restaurants that are included in the costs, you may have to make a reservation which can be difficult to do in advance. Drinks beyond coffee, juice and tea may come at another expense, so be prepared to pay for alcohol.

Excursions

You are going to want to read the fine print of what activities are included in the price. Things like massages, scuba diving and boat rides are most likely going to cost you extra. If you are fine with soaking up your time relaxing on the beach and enjoying the nightly provided entertainment, this won’t be an issue!

Environment

All inclusives are not meant for the traveler who likes being exposed to other cultures. You are primarily going to be spending your time with others similar to you. The places your cruise ship ports at are often times large operations that do not always benefit the local economy. If you are a traveler who prefers to enjoy your time away without the stress of adapting to a different culture, all-inclusives might be for you. You won’t have to worry about scouting for transportation, getting lost or language barriers.

It’s important to realize that all-inclusives may not be cheaper than a non-inclusive vacation. However, they may save you the time and energy it takes to plan out every detail of a trip. The potential savings from a DIY method may not be worth the energy to some. The most crucial part to making sure your money is well spent is to read the fine print of every purchase agreement you make for your vacation. Tipping, Wi-Fi and a resort fee may be added onto your bill at the end of your stay and we want to help you avoid that! In this way, you can have a blast on your trip, and NOT your wallet!

Simple Ways Going Green Can Save You Money at Home

Have you ever thought about making your household more environmentally friendly, but felt it would just be too expensive? Many homeowners are under this impression, even though they have a desire to reduce their carbon footprint. However, you don’t need to buy all new energy efficient appliances. In fact, going green and saving money can even go hand in hand. By merely adopting a few of these suggestions, you can decrease excess and expenses.

Reduce

Travel – Dealing with traffic on your way to work is frustrating. Why not share the ride with a coworker? This not only decreases air pollution, but lessens the traffic, the daily stress of driving and gas costs. This is a huge help to the environment, as 30 percent of carbon emissions come from transportation. If this isn’t your thing, consider biking to work or working from home.
Waste – Whether it’s saving on stamps from Iowa State Bank and Trust Co. of Fairfield’s paperless billing or adjusting a thermostat, you can eliminate waste with simple choices. Unplug any electronics you are not using, or invest in a power strip to easily turn off of multiple money-hungry appliances. Say goodbye to plastic water bottles, and hello to a water filter and glass water bottle. Water-efficient fixtures and LED light bulbs are a low cost way to decrease waste – it’s that easy!

Reuse

Compost – Instead of throwing your banana peel in the trash, consider starting a compost bin. This is the hallmark of an eco-friendly household. This will not only lessen the use of garbage bags, but provide you with nutrient-rich soil for your garden!
Electronics – If you have gadgets you no longer use, there are many places that will buy them from you to refurbish. By not throwing these in the trash, you will have prevented harmful chemicals from entering the water systems. Never buy new when you can get it cheaper online!

Rethink

Cleaning – Even if you are buying chemical-free cleaning products, it can be easier to make your own products from natural ingredients like lemon and vinegar. Did you know your dryer can increase your electric bill by 6 percent? Set up a clothesline outside for fantastic smelling laundry and savings.
Purchases – Be a smart shopper. Convenience has a price when it comes to food. Buying from your local farmer’s market and cooking at home will eliminate the waste from packaging and the costs that come with manufacturing. Even buying clothing that seems “cheap” comes at a price, as those items typically come from countries with low environmental standards, and the products won’t last as long as quality items.

Implementing any of these tips into your routine is a great start to going green and saving money! For more great ways to maximize your dollar, check out the wide range of services at Iowa State Bank & Trust Co. of Fairfield, Iowa.

Considerations of Renting Vs. Buying in Retirement

Congratulations, you have made it to retirement or are close to being in your Golden Years! As you may be discovering, a successful retirement plan involves extensive planning and a lot of patience. Likely, one of the last and biggest decisions to make in your plan is deciding what living situation is most financially feasible. While you may have invested in home ownership for many years, it may be time to downsize and your decision to rent or to buy your next space can have significant impact on your hard earned savings. Considering all the pros and cons of both will help aid you in your choice!

Buying

The perks of homeownership don’t necessarily change in retirement. In fact, the rate of homeownership for people age 65 and up has remained at about 80% since 2006. There are property and tax write offs, the potential for appreciation/equity and the power to make your place look exactly the way you wish. However, your needs are changing and with that so will the benefits and disadvantages.

A question you need to ask yourself is whether you want to leave an inheritance with your home. If you are not, it might be better for you to choose renting, unless the median home price in your area is low. Don’t forget to factor in closing costs and taxes. Your home as an investment late in life can become less important. You should run the numbers in your desired living community.

The reality is, one of the major advantages of home ownership is building equity, which would require you living in the home for at least 5 years. Unfortunately, depending on health, living in the new home for 15 years may not be possible, especially if you need to move into assisted living sooner than expected. The bottom line with home ownership is that it would make the most financial sense to ensure that you are going to be in the house long term.

Renting

You may be of the belief that renting is primarily for the younger generation. However, from 2005 to 2015, the number of renters ages 60 to 64 nearly doubled, increasing from 1.2 million households to 2.5 million. The benefit that comes with renting is the flexibility that retirees have been looking forward to all of their working years. You can move as often as you like and have notably less responsibilities that your body may not be up for such as lawn care and basic home maintenance.

Estimate your cash flow needs and assess the relative costs of home prices and yearly rent for comparable properties. Would it make most financial sense for you to put the proceeds from selling your home into investments that you can use for renting? Don’t forget to consider that rental prices will increase.

You may be so accustomed to the idea of “owning” that the transition to renting might not be easy. If you are planning on moving away from where you have lived for years, starting fresh in a new community will be an adjustment, along with not being able to paint or make large changes to your home.

As with all major decisions, the right one will vary for each individual and location. At Iowa State Bank & Trust Company of Fairfield, we would love to help offer some guidance in your financial decisions to make your Golden Years truly golden. Give us a call, or stop by today to see how we can help!

America Saves Week

America Saves Week begins on Monday, February 26, 2018. This event is the product of the America Savings Educational Council and is strongly supported by all financial institutions in the state of Iowa. This program seeks to motivate, encourage and support households, as well as individuals to save money and build wealth. It is built on some very simple concepts:

Save with a plan
Save as a family
Always “pay yourself first” and save regularly
Save for rainy days

Having a road map to a goal is always the best way to start. Thinking about expenses, spending, and using all resources effectively is the basis for establishing a plan. Most of the time, a good savings plan is simply a matter of matching our finances with our costs or living within our means. Impulse spending is the source of all disaster, as well as using debt to cover living expenses.

Executing a savings plan is always easier if not done alone. Integrating family members from the youngest child to grandparents is a good way to stay on track and teach good habits. As a new grandfather, I am well aware of helping out my children save for the future of their families. Grandparents can provide funds on birthdays and at holidays instead of spending on the latest gadget or toy. There are many vehicles to do this. One of the best ways is a “529” education savings plan or a Treasury Direct account.

The concept of “paying yourself first” is a good way to provide accountability and discipline. Whatever amount you need to support your savings plan should be subtracted from any earnings or funds received and put into a savings account at your local, commercial bank. This is a safe place with no exposure to market price movements. Decisions about further investments can be made at a later time.

A crucial part of the plan is to save for emergencies. The best time to repair a hole in the roof is when it is not raining. The best time to accumulate funds for insurance against the unknown is now. The amount should simply be a multiple of monthly expenses and should be segregated in a liquid bank account that will not be touched. This allows the household or individual to absorb unplanned events and not have to go into debt. Once again, a savings account at your local, community bank is the place for this money because you can access it and it is insured against loss.

Iowa State Bank and Trust Company as your locally owned, community bank is committed to helping you in your savings plan. Let us all do this during America Saves Week!