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| Reasons to Be Positive
 Gloom and doom aside, there is plenty of opportunity to shed yesterday's negativity and be positive about the direction the economy is headed. There are things we can control, and things we cannot. By removing emotion from our financial decisions and seeing current opportunities, we can make positive moves that reward us in the future.
Here are some sure opportunities that we can feel good about today.
Summer is Here
Enough said. We live in Wisconsin.
Credit is Plentiful
Wisconsin banks are well capitalized and have plenty of money to lend. Borrowers with solid credit profiles will have no problems getting funds. In fact, banks will be competing for good customers. Loans are being made daily for home purchases, mortgage refinances, agricultural needs and business expansions at historically low interest rates.
Rates on Loans are Low
Interest rates are the lowest that they've been in decades, and should help spur the economy. A 1.5% drop in a 30-year mortgage with a rate of 6% can reduce your monthly payment by as much as $278 a month on a $300,000 mortgage - or $186 per month on $200,000.
Lower Prices at the Pump
Running your gas guzzler is cheaper as well. The price for a gallon of gasoline is well below last year's high. This can mean an additional $100 or more per month in our pockets. Also, the collapse in natural gas prices from last summer should show us savings in electricity bills, especially cooling our homes this summer. These reductions in energy costs should help improve our savings each month.
Stocks at Bargain Prices
The Standard & Poor's 500 Index (S&P 500) closed beneath 700 points in March - the lowest level since October 1996. At last, stocks are near levels where buying makes sense. If the market continues its upward climb, current stock prices will look like the bargain of the decade, if not the century. Buying equities can be a good deal as long as you have long-term perspective on it.
Homes are Becoming Affordable Again
Whether you want to purchase your own home or an investment property, real estate prices have declined. Now can be a tremendous opportunity to buy property, especially given the historic low mortgage rates and tax incentives for first time homebuyers. If you currently own a home, don't sweat about this decline. Prices will come back up, making this recession period a great time to buy.
Your Money is Safe at the Bank
The government has increased the guarantee on our bank deposits thanks to the credit crunch. FDIC Insurance of up to $250,000 per depositor allows you to sleep easy at night.
In times of chaos and uncertainty, things have a funny way of becoming clear. Challenging times are not fun, but they bring balance back to markets and provide new opportunities to those who see them. With a positive attitude and optimistic view of the future, you will be surprised at how many opportunities are here right now. |
| Mobile Banking Convenience
Want to access your Peoples Community Bank accounts from your mobile phone? Very soon, you can - with Mobile Banking. Simple and secure, mobile banking allows you to access account balances, pay your bills, and transfer funds through the browser on your PDA or cell phone (assuming you have "data" service). If you already have an Online Banking login and password, you're all set. With internet  access from your mobile device, you will be able to securely access online banking. Some features, such as forgotten password delivery, will not be available through mobile banking. This is for your security, should your mobile device become lost or stolen. Enjoy banking with The Peoples Community Bank from your iPhone or other handheld device! (iPhones sold separately!) |
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Tax Credit for First-Time Home Buyers
Understanding the 2009 Tax-Year Version
Making a purchase as large as a home - especially if you're a first-time home buyer - may sound counter-intuitive during the worst recession in well over a half-century. But the truth is it's a great time to be a first-time home buyer. Interest rates are low and there are plenty of homes available to prospective home buyers looking for a good deal. And at a time when every dollar counts, recent changes to the federal government's First-Time Home Buyer Tax Credit offer new home owners some additional tax relief.  An earlier version of the First-Time Home Buyer Tax Credit was instituted last year. That law gave first-time home buyers a credit-loan that applied to home purchases after April 8, 2008 and before July 1, 2009. The tax credit-loan amounted to 10 percent of the home's purchase price up to a maximum available credit of $7,500. Whatever the size of the credit-loan a taxpayer received, the credit-loan must be repaid over a 15-year period beginning on the 2010 tax return. The 2009 version, however, contains new eligibility requirements. Some of the new requirements for 2009 are as follows:
- To be eligible for the new credit, homes must have been purchased on or after Jan.1, 2009 and before Dec. 1, 2009.
- Because this is a tax credit, it can only be claimed on a home owner's federal tax return, and cannot be applied to the purchase price. However, since it is a credit and not a credit-loan, no repayment is required.
- The credit is equal to 10 percent of the home's purchase price up to a maximum of $8,000.
- The tax credit is reduced for buyers with a modified adjusted gross income (MAGI) of more than $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return. The tax credit is reduced to zero for taxpayers with MAGI of more than $95,000 (single) or $170,000 (married) and is reduced proportionally for taxpayers with MAGIs between those amounts.
The law permitting the tax credit defines a first-time home buyer as a buyer who has not owned a principal residence during the three-year period prior to the purchase. If the "buyer" is a couple, this test must be met by both individuals. Any home that will be used as a principal residence will qualify for the tax credit. This includes single family detached homes, attached homes like townhouses and condominiums, and manufactured homes. A principal residence also includes one that is constructed by the home owner where the date of first occupancy must be on or after January 1, 2009 and before December 1, 2009. For more information on the First-Time Home Buyer Tax Credit, you can contact your tax preparer or visit www.FederalHousingTaxCredit.com. |
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Are You Committed to Green?
Have you considered going green with your monthly checking statement? Receiving a monthly e-statement can save time, money - and trees Signing up for e-statements is quick and easy. The next time you sign-in to Online Banking, you'll be presented the option to receive your statement electronically. You then:  1) Go to User Options 2) Choose Online Statement Options 3) Choose Waive the mailing of your monthly paper statement 4) Go to Account Access 5) Choose Online Statements 6) Scroll through and read the terms and conditions 7) Select Accept 8) Choose the account(s) for which to receive online statements Transitioning from paper to e-statements is a breeze! At the beginning of each month, we will send you an e-mail notification that your online statement is ready for viewing. To view your statement, simply sign-in to Online Banking and click on the Statement option. If you've already signed up for paperless statements, there is nothing else you need to do. You will continue receiving e-statements as usual. We appreciate your efforts to conserve trees, and as always, thank you for choosing to bank with us! |
If the stock market downturns have left you discouraged about your retirement investments, take heart. For any long-term investment program that uses dollar-cost averaging, bad markets can be good for your 401(k).
In fact, if your investment goal is more than 10 years away, you are almost certain to end up with more money if you dollar-cost average your stock investments through several market downturns - rather than encounter a steady succession of positive market returns.
Dollar-cost averaging is a method of investing a fixed amount of money at regular intervals- the way most of us do with our 401(k)s, 403(b)s, or other retirement plans.
The method gets its name because, by investing at regular intervals, you are buying more shares when prices are low and fewer when they are high. Your cost per share is "averaged" toward the lower end of the investment price spectrum.
For those investors who hang tight during the downturn, dollar-cost averaging is not just the silver lining during rough times; it could well produce a pot of gold by the time you retire.
Dollar-cost averaging is a good investment tool because it can prevent people from getting discouraged by down periods in the market and responding emotionally. It's easy for people to get depressed when they open their 401(k) statements and see the balances going down.
This can lead investors to do exactly the wrong thing, such as pull money out of their 401(k)s altogether or put it in accounts that guarantee no loss of principal but a minimal return. By doing this, the investor gives up the chance to buy securities for less.
Experts remind us that we can expect the stock market to reach new highs in the future. We just don't know how or what lies in between. When investing in the stock market, you have to go in for the long term, knowing it's going to be a roller coaster ride.
Have questions about dollar-cost averaging? Looking for feedback on an investment you are considering? Call Mike Peterson or Nancy Cullen in our Investment Center at 608-795-2120. |
Rewarded Yourself Lately? 
Have you checked your point balance lately? If not, you might be surprised to find enough points to grab a gift certificate at your favorite restaurant or retailer. You can redeem for rewards with as few as 2,000 points. These days, every little bit can help. To make sure you're utilizing the full benefits of this program, please review the answers to these common questions: How do I earn Rewards points?With our Rewards debit card, you'll earn points on all qualified purchases without the hassle of writing checks. The card allows you to earn one point for every three dollars spent on qualified purchases. What is a qualified purchase?To qualify for Rewards points, you must choose "Credit" instead of "Debit" at the point-of-sale (i.e. check-out counter). If you enter your PIN, points will not accrue in your Rewards account. Points also do not accrue for online transactions. Points will be rewarded at any merchant that accepts MasterCard, excluding online transactions. How do I check my point balance and redeem points?Click on www.manage-my-rewards.com, then login. You may also call 866-678-5189 anytime - 24/7 - to check your balance and order gift cards, travel, or merchandise. For more information, please visit the Rewards page on our website. | |
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THE PEOPLES COMMUNITY BANK - 222 W. Commercial St., Mazomanie, WI 53560 Toll free: 800-795-2151 Phone: 608-795-2120 Fax: 608-795-2133 www.thepeoplescommunitybank.com This newsletter does not constitute tax, legal, accounting or other professional advice. We attempt to be accurate, but neither we nor any other party shall be held liable for loss or damages resulting from reliance upon or use of this material.
© 2009 The Peoples Community Bank | |
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