FINANCIAL PLANNING

BUSINESS FUNDING SERVICES With MFB Bank's business funding resources you can get quick short term infusions of capital into your business to use for any purpose. We have special relationships with leading merchant cash companies like Entrust, CapVance and Advantage. We're pleased to make brokerage services available to you through Fiserv Investor Services, Inc. (FIS)! You now have access to a wide range of investments to meet your needs, including: Mutual Funds Stocks Bonds Insurance Annuities With the personal service provided by an FIS Registered Representative, you'll receive information to help you make your investment decisions. Please call for more information or a consultation with an FIS Representative. Brokerage services are provided by Fiserv Investor Services, Inc., a registered broker/dealer and member of the NASD and SIPC. FIS is not an affiliate of this financial institution. Investments are: *Not FDIC Insured *Not Bank Guaranteed *May Lose Value EXPLORE YOUR INVESTMENT CHOICES With over $3 trillion in total assets, mutual funds are clearly a popular investment choice for many people. Financial survival into the next century depends on your actions today. Establishing clear financial goals can help. Choosing the most appropriate investment can be critical. Through Fiserv Investor Services, Inc. (FIS), we can show you a wide range of investment opportunities. MUTUAL FUNDS CAN OFFER: Diversification Low monthly investment minimums Participation in the stock and bond markets Convenient, low-cost access to professional money management Potential for growth and/or income with the opportunity to outpace inflation HOW DO THEY WORK? When you invest in a mutual fund, your money is pooled with money from many other investors. The managers of the fund purchase a broad range of securities with this pool. You receive a specified number of shares based on the size of your investment relative to the net asset value of the fund's total shares. HOW CAN I MAKE MONEY? When you own shares in a mutual fund, your investment will grow if: The value of the fund's assets increase, causing your shares to be worth more. You will recognize a gain if you sell your shares. Investments within the fund earn dividends or interest. You receive a portion of these dollars relative to the number of shares you own. With these potential rewards, mutual funds also carry some risk. The value of your shares can fluctuate. If you sell shares during a time when your fund has decreased in value, you may receive less than you originally invested, thus a loss of principal. ARE MUTUAL FUNDS THE RIGHT CHOICE FOR ME? Mutual funds may be a good choice if you have long-term goals such as: Lowering your taxes Saving for your child's education through IBI Financing Planning for your retirement Generating income at retirement WHICH FUND TYPE IS BEST FOR ME? There are many types of mutual funds to meet a variety of investment objectives. Generally, all funds are designed for either growth, income, tax-free income or a combination of these objectives. Contact your FIS Investment Professional to assist you in choosing the fund(s) that most closely match your time horizon, risk tolerance and investment objectives. Always request and read the prospectus carefully for complete information regarding charges and expenses MONTHLY INVESTMENT CHART The following chart illustrates the various types of mutual funds and their earning potential: Fund Type/Fund Objective Type of Securities Potential Growth* Potential Income* Aggressive growth Stock of new or small companies Very high Very low Growth Stock of mid-size or large companies High Low Growth & income/strong growth with some income Stock of well-established companies with consistent dividends Moderate Moderate Fixed Income/high current income A mix of bonds and some stocks with consistent dividends Very low High Municipal bonds/tax-free income Bonds exempt from most income taxes (may be subject to the AMT**) Low-moderate Moderate-high Balanced/both income & growth A mix of stocks and bonds Low Moderate-high *Rated by the Wall Street Journal to Understanding Money and Markets, 1990. **Alternative Minimum Tax MAKE INVESTMENTS A PART OF YOUR PLAN FOR LIFE Will your current investments carry you into the 21st century and beyond? Preparing for your financial future means planning today. Your FIS Investment Professional may, where permissible, provide you with investment consultation in the following areas: Mutual Funds Annuities Stocks Bonds (taxable and tax-free) Retirement planning Investing for college education Estate planning Asset allocation planning Long-term care Insurance Let the investment Professional guide you through a wide range of investment choices. We don't just help you plan...we help you plan for life. Call for an appointment today. RETIREMENT PLANNING Don't Retire Your Dreams Before You Reach Retirement YOUR GOLDEN YEARS...A WORTHWHILE INVESTMENT The average person will need 70-80% of his or her current income to retire comfortably. With the future of Social Security uncertain and the power of company pension plans diminishing, where will the money come from? Whether your vision for retirement will become reality depends on your actions today. Ensuring financial security upon retirement means starting early and exploring new investment opportunities. Fiserv Investor Services, Inc. (FIS) can help you invest wisely for your golden years. HOW MUCH MONEY WILL I NEED? The likelihood of living 20-30 years in your retirement is better than ever. Maintaining your current standard of living during that time may prove to be a challenge. However, with a clear investment goal and careful planning, you can successfully generate a steady stream of income throughout your retirement years. The following questions will help you get started with your plan: At what age do I plan to retire? What are my current living expenses and how will these change when I retire? How much do I currently have saved, and in what types of investments? Do I have access to a retirement plan through my employer? With this basic information, your FIS Investment Professional can assist you in determining your retirement goals and creating a systematic plan to help you get there. WHEN SHOULD I BEGIN INVESTING? The answer to this question should always be the same - TODAY! The longer you wait to begin saving, the more you will have to invest each month to achieve the same result. The chart below shows how important it can be to start the process early. With each year you wait, the monthly savings you must contribute to reach the same goal increases significantly. THE PRICE OF PROCRASTINATION Assuming an 8% average annual return, you would need to invest the following amounts each month to generate income of just $25,000 per year throughout your retirement YEARS TO RETIREMENT MONTHLY INVESTMENT YEARS TO RETIREMENT MONTHLY INVESTMENT 30 $208 17 $719 29 $227 16 $802 28 $249 15 $897 27 $272 14 $1,008 26 $298 13 $1,137 25 $326 12 $1,291 24 $358 11 $1,474 23 $394 10 $1,697 22 $433 9 $1,972 21 $477 8 $2,319 20 $527 7 $2,769 19 $583 6 $3,373 18 $647 5 $4,225 The rate stated is hypothetical and does not represent the return of a particular investment. WHAT ARE MY INVESTMENT CHOICES? There are many attractive investment choices when it comes to retirement. Some offer tax deductibility and allow all or part of your contributions and subsequent earnings to remain tax-free until you make withdrawals. These are the most popular, as your money can compound at a faster rate. Some of the most common methods include: Individual Retirement Accounts (IRAs) An IRA is one of the most popular retirement planning vehicles, giving you access to a wide range of investments. All or part of your contributions may be tax-deductible, depending on a number of factors. Your earnings are tax-deferred until withdrawn. The contribution limit is $2,000 per year in most cases. Fixed or Variable Annuities* Annuity contributions are not tax-deductible, but earnings are tax-deferred. Their benefit over an IRA is the ability to contribute a much higher amount per year, thereby receiving tax-deferment on a larger portion of your earnings. Tax-Exempt Securities Municipal bonds and mutual funds that invest in municipal notes and bonds may be exempt from federal and / or state taxes. Income may be subject to the Alternative Minimum Tax. Your FIS Investment Professional can help you select the right combination of investments for your unique needs. Call today for a free consultation. * A surrender charge on annuities may be imposed, generally during the first 5-7 years. Withdrawals prior to age 59 1/2 may result in a 10% penalty. The guarantee of the fixed portion of an annuity is backed by the financial strength of the underlying insurance company. Sub-account values will fluctuate. MAKE INVESTMENTS A PART OF YOUR PLAN FOR LIFE Plan Today So You Can Enjoy Tomorrow! Will your current investments carry you into the 21st century and beyond? Preparing for your financial future means planning today. Your FIS Investment Professional may, where permissible, provide you with investment consultation in the following areas: Mutual Funds Annuities Stocks Bonds (taxable and tax-free) Retirement planning Investing for college education Estate planning Asset allocation planning Long-term care Insurance Let the investment Professional guide you through a wide range of investment choices. We don't just help you plan...we help you plan for life. Call for an appointment today.