The prodigious bank ledger used to be one of most important components of America’s financial system. Hand-written entries detailed every account holder’s deposits, withdrawals, loans and payments.
A lot has changed since then. In fact, in just the last decade, banking has become as much a technological innovation as it has a money manager. Even 21st century holdovers like checks and debit cards are gradually being replaced by more immediate transactions. Moving forward, we can expect increased activity in the areas of automation (bill paying, auto saving), personalization (fraud alerts, apps for budget tracking, spend forecasting) and real-time payments (Zelle, Venmo, CashApp).1
If you’re not keeping up with banking trends, now may be a good time to get on board. Not only do “set and forget” functions make it easier to pay bills and save regularly, but these things become even more important when we retire. For example, if you are a “snowbird” with homes in different states, online banking and e-bills can help you stay current without having your mail forwarded. The same is true if you decide to travel extensively. Even abroad, you can pay your bills anywhere that provides a secure Wi-Fi connection. Moreover, today’s banking innovations provide ways to ensure we don’t forget to pay bills or overdraw on our accounts. If you’re looking for other ways to consolidate and simplify your financial activities in retirement, we may be able to help.
If you decide to “retire” your investments and consolidate cash accounts, bear in mind that both the National Credit Union Administration (NCUA) and the Federal Deposit Insurance Corp. (FDIC) insure deposits up to $250,000 per account holder — per each qualified account type — per each insured institution. This means that even if your bank were to fail, the federal government insures that your money is protected.2
After the Great Recession, Congress passed legislation that required banks to hold more capital on reserve for account holders. However, during the pandemic, the Federal Reserve loosened those requirements for lending purposes, allowing a greater cash infusion to help boost the economy. Now that the U.S. is on the road to recovery, the Fed announced in March that it would not extend the relaxed requirements past March 31.3
Fresno Retirement Consultant Takeaways
Fresno financial planning is our utmost concern here at Soutas Financial and we thought these takeaways were worth mentioning again: In just the last decade, banking has become as much a technological innovation as it has a money manager. Moving forward, we can expect increased activity in the areas of automation (bill paying, auto saving), personalization (fraud alerts, apps for budget tracking, spend forecasting) and real-time payments (Zelle, Venmo, CashApp).1 If you decide to “retire” your investments and consolidate cash accounts, bear in mind that both the National Credit Union Administration (NCUA) and the Federal Deposit Insurance Corp.
Diversifying your retirement assets among a variety of vehicles and alternatives—both insurance and investment oriented, depending on what is appropriate for your situation—may offer you a better chance of meeting your retirement income goals throughout your lifespan. We help our clients with problems sometimes associated with retirement such as stopping spend down and avoiding probate. In doing so we leverage strategic wealth management as well as retirement annuity designed to help accomplish those goals.
When searching for Fresno financial advisors, look no further than Soutas Financial & Insurance Solutions Inc. your Fresno retirement plan consultant is committed to helping take the complexity out of retirement planning. By using a variety of insurance and investment strategies that focus on Asset Protection, Long-Term Care Strategies, Legacy Planning, Tax Efficient Strategies IRA, 401(k) & 403(b) Rollovers Life Insurance Annuities Medicare, we can help you develop an overall retirement income strategy specific to you and your family. We have a strong team of professionals helping ensure you receive all the assistance you need not only in developing your retirement income strategy, but in maintaining it throughout your retirement. Contact us today at 559-230-1648 or visit us today at Soutas Financial your top financial advisors in Fresno, Ca., to get your retirement plans on track for success!
Investment advisory services offered only by duly registered individuals through AE Wealth Management, LLC (AEWM). AEWM and Soutas Financial & Insurance Solutions, Inc. are not affiliated companies. California Insurance License # OK48173
Soutas Financial & Insurance Solutions Inc.
333 W. Shaw Avenue Suite 106
Fresno, CA 93704
Content prepared by Kara Stefan Communications.
1 Liz Frazier. Forbes. March 22, 2021. “Digital Banking Trends Evolve In 2021, But Customer Needs Stay The Same.” https://www.forbes.com/sites/lizfrazierpeck/2021/03/22/digital-banking-trends-evolve-in-2021-but-customer-needs-stay-the-same/?sh=2dc8b9d91cd3. Accessed March 23, 2021.
2 Melissa Lambarena and Chanelle Bessette. NerdWallet. Dec. 7, 2020. “How NCUA Insurance Works.” https://www.nerdwallet.com/article/banking/ncua-insurance-keeps-credit-union-deposits-safe. Accessed April 14, 2021.
3 The Tribune. March 19, 2021. “Fed to end relaxed capital requirements for large banks.” http://www.tribtown.com/2021/03/19/ap-us-federal-reserve-bank-regulation/. Accessed March 23, 2021.
We are an independent firm helping individuals create retirement strategies using a variety of insurance and investment products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic financial planning strategies and should not be construed as financial or investment advice. All investments are subject to risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.
The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.
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