Monitoring your risk and return for proper wealth and investment management.

First National Bank and Trust and Company manages our clients’ investment portfolios with a “risk-first” attitude. What this means is that we strive to create investment portfolios that minimize the risk of significant losses while also not sacrificing return capability. Our investment committee meets regularly to discuss the markets and where we see potential for risk and reward, and we adjust our clients’ investments accordingly. The foundation of our committee is, and always will be, data. We use state-of-the-art technology to determine risk and return estimations, which result in portfolios that are well-diversified, but not detrimental to the portfolio returns. 

Are there dividends with my investments?

First National Bank and Trust Company has multiple investment options. With all of the options there are dividends and interest income; however, if an investor is looking for more of an income producing portfolio that produces higher cash yields, we do offer a few investments in this specific realm. Typically, we reinvest any dividends that come back into the investment portfolio, but we can also set up your account to pay the dividends to your checking or savings account on a quarterly basis.

How are investments taxed?

Any investments that are in retirement accounts will be taxed how that account structure is set up. If you have a Traditional account, then any time you realize money from that account it is taxable. If you have a Roth, then those investments grow tax free. If you have a brokerage account, or we term these accounts “agency accounts”, then this is a taxable account. Any dividends or interest income is taxable to you, along with any realized gains in that tax year. We are mindful of our client’s tax situations as long as they are transparent with us, and we work together with our clients and their CPAs to keep a smart tax strategy with their accounts.

Should I invest more money, or pay off a loan?

With the answer already spoiled, “it depends”, this decision comes down to how you feel and what makes sense for your financial goals. Is your goal to save for the long-term and add to your retirement nest egg? Are you someone who wants to be debt-free and financially independent sooner? As local financial advisors, these are questions we can help you walk through and answer for your financial plan. Other options can include a mixture of splitting money up into investments and paying additional on principal and not focusing on one method more than the other. No matter where you find yourself in the great debate of investing vs. paying down your mortgage, know you are not alone. You can read a more in-depth answer on our blog, or you can contact your banker today to ask the question.

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Our team is here to help, assuring that you and your family are well prepared for all stages: generation of wealth, retirement, incapacity, or death. We are your valued partner in navigating all of life’s major events. Contact us at 844.487.3115 to schedule a 30-minute meeting to identify potential risks to your plans today.

Trisha McCoid - Financial Portfolio Advisor Trisha brings with her passion and zeal for the community in her role. With nearly two decades of experience in developing relationships with a financial background, her skillset is a dynamic combination for her role as the Financial Portfolio Advisor. Her desire to help people meet their goals is the driving force and palpable when meeting with her. When not busy working in the community, volunteering for local non-profits, or serving as a board member for various organizations, you may find her shopping or dining at her favorite neighborhood small businesses, catch her at the park or the ball field with her kids or watch her drive by in her beloved Pink Jeep!