Now is the Time to Think About Your Retirement

At this time of year, many people start preparing their taxes and even planning their
financial future. A great way to save for retirement is an IRA, an individual retirement
account. It’s a personal savings plan, completely funded by you, that provides income tax advantages for those saving money for retirement. The planning is easy. Each person can invest up to $4,000 per year in an IRA. However, there is a “catch-up” contribution that is allowed for those 50 years and older. This would allow an additional $1,000 to be contributed for a total of $5,000. The money invested, as well as the earnings from this investment, accumulates tax-free until you withdraw the money at retirement. Therefore, you can generate additional earnings each year the funds remain within the IRA.

There are two types of IRA’s that the government has set up, the traditional IRA and the Roth IRA. In order to establish and contribute to a traditional IRA, you must have some taxable compensation. The benefit to putting this money into an IRA vs. a savings
account is that you pay no tax on the money the year you invest it. Then later in life, you can withdraw the money and pay tax on it then. The Roth IRA is a new way to encourage retirement savings. The main difference between a traditional IRA and a Roth IRA is that contributions to a Roth IRA are never tax-deductible, but when you take the money out at retirement (when meeting age requirements), it is entirely tax exempt.

The term rollover is often associated with someone talking about an IRA. A rollover is
when you move a qualified plan (such as a 401K) or another IRA into another IRA. You can only do one rollover every twelve months. You can do as many trustee-to-trustee transfers as you want per year. In a trustee-to-trustee transfer, your current plan sends the money or assets to another rollover plan.

Having a competent advisor, such as Spencer Savings Bank, will help with this type of transaction. Spencer Savings Bank has been serving the community for more than 65 years offering competitive pricing as well as excellent customer service. At Spencer, opening or rolling over an IRA is simple because they take the hassle out of the paperwork.

Spencer Savings Bank; www.spencersavings.com; 800-363-8115

The Town Bank

The Town Bank, a NJ state chartered communitybank, provides a wide range of retail
and commercial banking services to small and medium-sized businesses, including FREE checking, savings, and money market accounts; certificates of deposit, IRA’s, safe deposit boxes, electronic funds transfer, ATM services; together with the convenience of a full complement of round-the-clock online banking services. Home Equity Lines of Credit and fixed rate, or interest only first mortgages are available at competitive rates. A recognized SBA/Express lender, The Town Bank also offers small business loans, commercial mortgages, construction loans, equipment financing, and
investment services.

Named Business of the Year by the Westfield Area Chamber of Commerce in recognition of its ongoing support to its customers, involvement in local organizations, and commitment to the community, The Town Bank is rated “5 Stars” by one of the nation’s leading independent bank rating firms, giving it the distinction of being one of the strongest banks in the nation.

Visitwww.townbank.com for more complete information on banking services available.

Union Center National Bank

Now that 2005 has come to an end, Union Center National Bank is looking forward to an exciting and challenging 2006. Scheduled to open in the coming year are two brand new locations, one in Mountain Lakes/Boonton and the other in Florham Park. This brings the total banking locations for Union Center National Bank to 16.

“We are excited about being able to bring “True Community Banking to our friends in Florham Park and the Mountain Lakes/Boonton area” says Jack McGowan, senior vice president of Union Center National Bank.

Union Center National Bank brings the latest in technology and innovative products its customers while maintaining the ability to know its customers on a one on one basis.

During 2006, Union Center National Bank will offer a wide range of new products including “Reverse Mortgages, a new Small Business Loan product, Health Savings Accounts, and a Line of Credit with a Fixed Rate Introductory Component that gives customers the ability to better manage their repayment schedule.

Union Center National Bank has been named the Corporate Sponsor for all this year’s events held by the New Jersey State Firemen’s Mutual Benevolent Association (FMBA). The bank is proud to be associated with this fine organization of firefighters serving the state of New Jersey.

As interest rates rise there is opportunity for depositors to obtain very favorable rates on their Certificates of Deposit. It is also an ideal time for borrowers to lock into Fixed Rate Home Equity Loans.

Union Center National Bank has been serving communities in Union and Morris counties since 1923 and is a member of the FDIC and an Equal Housing Lender.

Union Center National Bank; www.ucnb.com; 800-U-N-CENTER

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