Adapted from Broadridge Communication Services
You know how important it is to plan for your retirement, but where do you begin? One of your first steps should be to estimate how much income you’ll need to fund your retirement. That’s not as easy as it sounds, because retirement planning is not an exact science. Every situation is different, and your specific needs depend on your goals and many other factors.
Team News and Honors
This spring and summer have been full of celebrations for the HTC team.
Amy Remmick (RS Operations and Compliance) and family celebrated their daughter Emily’s wedding in May.
Jan Nelson (Trust Officer) celebrated her 60th birthday in May. To help celebrate, her family and friends gathered for an evening food and music.
Denise Lies (Senior RS Operations and Compliance) and family celebrated their oldest son Tyler’s graduation from Carlson School of Management – University of Minnesota.
Jana Samek (Director of Retirement Services) and family celebrated their oldest daughter Taya’s graduation from West Fargo High School.
Missy Zarak (Trust Officer) and family celebrated granddaughter Jocelyn’s kindergarten graduation from Badlands Elementary School in Watford City, North Dakota.
Heartland Trust Company participated in the Hillsboro Dollars for Scholars scholarship program. Congrats to Heartland’s scholarship winner, Cole Hebl! Hillsboro Dollars for Scholars raised over $123,100 for the 2023 scholarship program with 35 graduates receiving scholarships.
( Hillsboro Dollars for Scholars President, Jim Murphy, Cole Hebl, Heartland Trust Vice President and Director of Business Development, Jon Benson)
Stay Connected
Here are two additional ways you can stay connected with HTC. Follow our LinkedIn page and leave us a Google review. We are grateful for all the ways our clients share our story with others.
With heavy hearts, we share that Ty Jochim passed away on July 6. Ty joined Heartland in March as a wealth management officer, and we cherish the short time we had with him. His friendly and easygoing nature made him fit in with our team immediately, and we are deeply saddened by his untimely death. Please keep his family and friends in your thoughts.
Amy Remmick
Amy Remmick, Retirement Services Operations and Compliance, has been at HTC for two years. She enjoys going on new adventures with her family. And, she has a never-goes-wrong recipe to share.
Tell us about yourself.
Born and raised in north-central Wisconsin, we moved to Fargo in 1993 with our 2-year-old and 6-week-old daughters. We transferred to the area with Case Corporation, intending to spend our required one year here and then move back to Wisconsin to be near our family. As our year ended, we decided that Fargo was a great place to continue raising our girls and have been here ever since.
What do you like to do in your spare time?
Family is our first priority, and we love going on new adventures together. My husband and I can often be found at the lake spending time on the water or hiking. During the winter months, we spend our weekends ice fishing, winter camping, and following college hockey. We are always on the hunt for something new and fun to do.
Tell us about your favorite life experience.
I witnessed the birth of my first grandchild. I am so blessed and feel that there could hardly be any greater experience than watching your baby give birth to her first baby.
What is your favorite movie/play/book?
The movie Elf. It’s a mindless, goofy holiday movie that simply makes you smile.
What was the first car you owned?
A silver/blue Dodge Omni. I can’t recall the year of the car, but I know that once we finished carving holes in the interior doors and rear window area, the Alpine stereo that we installed was worth more than the car itself. It was the greatest, and we loved driving around town listening to any Rush song.
If you could meet one person, dead or alive, who would it be and why?
My baby brother Patrick. Yes, we’ve met previously, but our family has had so many life experiences after his passing in 2007. I would love to chat with him about all of them. He was the best storyteller, and you always left a visit with him with sore abs from laughing so much. This world needed more people like him in it.
How long have you been at Heartland Trust and what is your favorite part?
I have just rounded the two-year mark. This time has flown by and I feel privileged to be a part of the Heartland Trust Company family. I admire the dedication that this team has to making HTC the best that it can be, and truly feel the support we give to each other is the foundation for our success.
Do you have a favorite recipe you would like to share?
I sure do.
Adapted from Broadridge Investor Communication Services
Everyone wants to retire comfortably when the time comes. We may also want to help our children go to college. So how do you juggle the two? The truth is, saving for your retirement and your child’s education at the same time can be a challenge. If you make smart choices now, you may be able to accomplish both goals.
The first step is to determine your financial needs for each goal. Answering the following questions can help you get started.
For retirement:
For college:
Many online calculators are available to help you predict your retirement income needs and your child’s college funding needs.
After you know what your financial needs are, the next step is to determine what you can afford to put aside each month. To do so, you’ll need to prepare a detailed family budget that lists all of your income and expenses. Keep in mind, though, that the amount you can afford may change from time to time as your circumstances change. Once you’ve come up with a dollar amount, you’ll need to decide how to divvy up your funds.
Though college is certainly an important goal, you should probably focus on your retirement if you have limited funds. With generous corporate pensions mostly a thing of the past, the burden is primarily on you to fund your retirement. But if you wait until your child is in college to start saving, you’ll miss out on years of potential tax-deferred growth and compounding of your money. Remember, your child can always attend college by taking out loans (or maybe even with scholarships), but there’s no such thing as a retirement loan!
Ideally, you’ll want to try to pursue both goals at the same time. The more money you can squirrel away for college bills now, the less money you or your child will need to borrow later. Even if you can allocate only a small amount to your child’s college fund, say $50 or $100 a month, you might be surprised at how much you can accumulate over many years. For example, if you saved $100 every month and earned 8% annually, you’d have $18,415 in your child’s college fund after 10 years. (This example is for illustrative purposes only and does not represent a specific investment. Investment returns will fluctuate and cannot be guaranteed.)
If you’re unsure about how to allocate your funds between retirement and college, a professional financial planner may be able to help. This person can also help you select appropriate investments for each goal. Remember, just because you’re pursuing both goals at the same time doesn’t necessarily mean that the same investments will be suitable. It may be appropriate to treat each goal independently.
If the numbers say that you can’t afford to educate your child or retire with the lifestyle you expected, you’ll probably have to make some sacrifices. Here are some suggestions:
Yes. Should they be? That depends on your family’s circumstances. Most financial planners discourage paying for college with funds from a retirement account; they also discourage using retirement funds for a child’s college education if doing so will leave you with no funds in your retirement years.
However, you can certainly tap your retirement accounts to help pay the college bills if you need to. With Traditional IRAs, you can withdraw money penalty free for college expenses, even if you’re under age 59½ (though there may be income tax consequences for the money you withdraw). In a Roth IRA, you can withdraw the principal tax free if the account has been open for at least 5 years. But with an employer-sponsored retirement plan like a 401(k) or 403(b), you’ll generally pay a 10% penalty on any withdrawals made before you reach age 59½, even if the money is used for college expenses. There may be income tax consequences, as well. (Check with your plan administrator to see what withdrawal options are available to you in your employer-sponsored retirement plan.)
If this is all overwhelming or you need help putting the pieces together, a financial planner can help you with the process. The longer you wait, the less time you will have to save for any goal.
We have celebrated two promotions this year. Jana Samek was promoted to Vice President/Director of Retirement Services. Dustin Sobolik was promoted to Vice President/Director of Investments. Congratulations Jana and Dustin!
HTC team members enjoyed a St. Patrick’s Day Crawl through our office to celebrate the March holiday.
We enjoyed stops at:
Heartland has some of the most creative team members in town!
Join us in July for Heartland Trust’s semi-annual Market Update webinar. For more details or to get on the invite list, give us a call at 701-235-2002 or send us an email at [email protected]. Dustin Sobolik, Director of Investments at HTC, will give a 45-minute review of the market in 2023 and what to watch for the rest of the year.
Maureen Jelinek joined Heartland in December as our Executive Vice President / Chief Operating Officer. She has already become a cherished team member. She has extensive experiences in the financial industry – and you won’t want to miss her recipe for Green Enchilada Chicken Soup.
Tell us about yourself.
I am originally from Grand Forks. I graduated from the University of North Dakota where I studied business administration and marketing. In 1997, I moved to Fargo when I was promoted to Manager of Deposit Acquisition and Operations at Gate City Bank.
I worked at Gate City Bank for 27 years. Most recently I served as Executive Vice President, overseeing information technology, information security, project management, business intelligence, deposit acquisition and operations, digital banking, call center, compliance and loan servicing.
My husband Doug and I have three kids, two grandkids, and two dogs.
What do you like to do in your spare time?
I love to support and cheer for my kids at their activities. I also like to relax in the boat at the lake and make memories. I love comedy whether it’s watching comedians and comedy shows or catching the latest funny movie. I love to laugh!
Tell us about your favorite life experience
My favorite life experience is being a mom. I’m amazed at how unique each child is even when they are raised in the same environment. I enjoy seeing the world through their eyes.
What is your favorite movie/play/book?
The Other Sister, a romantic comedy.
If you could meet one person, dead or alive, who would it be and why?
I would want to meet my paternal grandpa. He died prior to my parents’ engagement. My dad shared wonderful memories of him and emulated the many admirable attributes he talked about such as integrity, kindness, respectful, loving, loyal, encouraging, supportive, strong work ethic, etc.
What is your favorite part about working at Heartland Trust?
The commitment of all team members to the company mission, vision, and values. This is an amazing team of professionals and a truly enjoyable culture!
Green Enchilada Chicken Soup
(Thank you, Pinterest, with a few tweaks!)
2½ pounds of shredded boneless skinless chicken breasts or thighs (I use a rotisserie chicken for great flavor and to save time!)
28 ounces green enchilada sauce
24 ounces chicken stock
1 cup half-and-half
2 cups monterey jack cheese shredded
4 ounces cream cheese cubed and softened
4 ounces green salsa verde
4 ounces diced green chiles
1 bunch of chopped cilantro
Salt and pepper to taste
• Our team continues to grow. We are excited to announce the following promotions and new hires.
Jana Samek was promoted to Director of Retirement Services.
Jana Samek
We recently welcomed two new employees to our team: Jennifer Schmidt, Administrative Associate-Personal Trusts; and Maureen Jelinek, Chief Operating Officer
Jen Schmidt
Maureen Jelinek
• We enjoyed participating in the 22nd annual Festival of Trees, a community event that supports Fraser, Ltd. Thanks to our team members who decorated our tree: Mary Fridgen, Jen Schmidt, Ethan Linder, Jace Gilleshammer and Jen Johnston
• We embraced the holiday spirit with our team Ugly Sweater Christmas Celebration. The entries were festive and fun. Congratulations to Amy Remmick (left) who won the Most Creative award and Steve Halverson whose sweater was voted the Ugliest.
Amy Remmick
Steve Harlverson
• We are thrilled that we were able to participate in the 2023 Giving Hearts Day. Each team member picked a charity in which HTC made a donation in their honor. Here are the charities we supported:
• Congratulations to Denise Lies who celebrated 30 years with HTC on January 14. Denise is our Senior Retirement Services Operations and Compliance. Congratulations, Denise!
Denise Lies
Tim Rensch joined us in July as our Retirement Services Relationship Manager. He likes to spend time outside and read – and he’s already become a valuable part of our team.
Tell us about yourself.
I am a native of Garrison, North Dakota, and moved to Fargo in 1993 to start college at North Dakota State University. I graduated with a BS in accounting and, after college, started my career in hotel management. In 2008, I started my first job in the financial services industry.
What do you like to do in your spare time?
I like to go camping and hiking with my wife and dogs. I also like to ride my bicycle, kayak, golf, and read.
Tell us about your favorite life experience.
I don’t have a single favorite life experience. I look at my past experiences, good and bad, as something to learn from so I am moving forward as the best possible person I can be.
What is your favorite movie/play/book?
My favorite book is the next one I’m going to read. I love to learn new things and to be able to look at situations through the perspective of others. Books and movies are great opportunities to expand my perspective and awareness, but I don’t get hung up on a favorite. Each one has given me a different, thought-provoking experience.
What was the first car you owned?
The first car I owned was a 1980 Pontiac 6000.
How long have you been at Heartland Trust?
I started at HTC on July 13, 2022.
What is your favorite part about working at Heartland Trust?
Heartland Trust is a place that treats people with respect and dignity. This holds true in the way the company treats employees, employees treat customers, and co-workers treat each other. Companies often spend a lot of time promoting their corporate culture, but I’ve found the companies with the best corporate culture show it and that is certainly true of Heartland Trust.
Adapted from Broadridge Investor Communication Services
As the end of the year approaches, it’s time to consider strategies that could help you reduce your tax bill. But most tax tips, suggestions, and strategies are of little practical help without a good understanding of your current tax situation. This is particularly true for year-end planning. You can’t know where to go next if you don’t know where you are now.
So take a break from the usual fall chores and pull out last year’s tax return, along with your current pay stubs and account statements. Doing a few quick projections will help you estimate your present tax situation and identify any glaring issues you’ll need to address while there’s still time.
When it comes to withholding, don’t shortchange yourself
If you project that you’ll owe a substantial amount when you file this year’s income tax return, ask your employer to increase your federal income tax withholding amounts. If you have both wage and consulting income and are making estimated tax payments, there’s an added benefit to doing this: Even though the additional withholding may need to come from your last few paychecks, it’s generally treated as having been withheld evenly throughout the year. This may help you avoid paying an estimated tax penalty due to underwithholding.
Of course, if you’ve significantly overpaid your taxes and estimate you’ll be receiving a large refund, you can reduce your withholding accordingly, putting money back in your pocket this year instead of waiting for your refund check to come next year.
Will you suffer the alternative?
Originally intended to prevent the very rich from using “loopholes” to avoid paying taxes, the alternative minimum tax (AMT) now reaches further into the ranks of middle-income taxpayers. The AMT is governed by a separate set of rules that exist in parallel to those for the regular income tax system. These rules disallow certain deductions that you are allowed to include in computing your regular income tax liability, and treat specific items, such as incentive stock options, differently. As a result, AMT liability may be triggered by such items as:
So when you sit down to project your taxes, calculate your regular income tax on Form 1040, and then consider your potential AMT liability using Form 6251. If it appears you’ll be subject to the AMT, you’ll need to take a very different planning approach during the last few months of the year. Even some of the most basic year-end tax planning strategies can have unintended consequences under AMT rules. For example, accelerating certain deductions into this year may prove counterproductive since AMT rules may require you to add them back into your income. If you think AMT is going to be a factor, consider talking to a tax professional about your specific tax situation.
Timing is everything
The last few months of the year may be the time to consider delaying or accelerating income and deductions, taking into consideration the impact on both this year’s taxes and next. If you expect to be in a different tax bracket next year, doing so may help you minimize your tax liability. For instance, if you expect to be in a lower tax bracket next year, you might want to postpone income from this year to next so that you will pay tax on it next year instead. At the same time, you may want to accelerate your deductions in order to pay less tax this year.
To delay income to the following year, you might be able to:
To accelerate deductions into this year:
The gifts that give back
If you itemize your deductions, consider donating money or property to charity before the end of the current tax year in order to increase the amount you can deduct on your taxes. As an aside, now is also a good time to consider making noncharitable gifts. You may give up to $16,000 (in 2022; twice that amount for a married couple) to as many individuals as you want without incurring any federal gift tax consequences. If you gift an appreciated asset, you won’t have to pay tax on the gain; any tax is deferred until the recipient of your gift disposes of the property.
Postpone the inevitable
To reduce your taxable income this year, consider maximizing pretax contributions to an employer-sponsored retirement plan such as a 401(k). You won’t be taxed on the contributions you make now, and you may be in a lower tax bracket when you do eventually withdraw the funds and report the income. (Note that if you take withdrawals from the plan before age 59½, you’ll generally be subject to a 10% penalty tax in addition to any income tax due, unless an exception applies.)
If you qualify, you might also consider making either a tax-deductible contribution to a traditional IRA or an after-tax contribution to a Roth IRA. In the first instance, a current income tax deduction effectively defers income — and its taxation — to future years (as with a retirement plan, an additional 10% penalty tax will apply to withdrawals made prior to age 59½ in addition to any income tax due, unless an exception applies); in the second, while there’s no current tax deduction allowed, qualifying distributions you take later will be tax free. You’ll generally have until the due date of your federal income tax return to make these contributions.
Tax planning can be complicated. Consider seeking the assistance of a tax professional to determine what year-end tax planning moves, if any, are right for your individual circumstances.
Our team wrapped up our 2022-23 United Way Campaign with a great event featuring taco in a bag, a dunk tank and lots of laughs. Thanks to our brave dunk tank victims: Brian Halverson, Dustin Sobolik, Jana Samek, Jon Benson, Mary Fridgen, and Naomi Schempp!
This fall, HTC team members enjoyed an old-fashioned picnic complete with food and games. Thanks to our amazing event organizers: Amy Remmick, Brian Halverson, Missy Zarak, Monica Millette and Kayla Kranda. What a fun afternoon of team building and fun!
Our Retirement Services team held their annual Retirement Insight event in October. Dustin Sobolik led a presentation on financial planning and Clay Leveritt from American Funds gave us an informative market update.
