VO LU M E 5 , I SS U E 1 , 2 0 0 7
PNC Directions
I Do!
FINANCIAL TIPS FOR NEWLYWEDS
Baby Boomers
Turn 60
What Comes
Next?
Strong Dollar,
Weak Dollar —
What It Means
for Your Wallet
PLUS
A D J U S TA B L E - V S . F I X E D - R A T E M O R T G A G E S
WHY NOT TO BORROW FROM RETIREMENT PLANS
I T ’ S N E V E R T O O L AT E T O
S TA R T M A N A G I N G F I N A N C E S
Overwhelmed
by Choices?
We can help.
Connect
Turkey or ham? Mustard or
mayo? White or wheat? Even
the seemingly simple act of
ordering lunch may seem
frustrating when confronted
with too many choices.
That frustration can be magnified when the choices
involve your finances — and the decisions could
impact your future. At PNC Bank, we have designed
our menu of financial services to help make banking
easy. And we provide tools — such as this issue of
Directions — that offer information and advice to
help you make those decisions with confidence.
Please stop by any PNC branch or call us at
1-888-PNC-BANK to talk about how we can
help you make banking as easy as PNC.
contents
Volume 4, Issue 2, 2006
4
9
11
Sincerely,
For Richer and
for … Richer?
I Do!
Financial Tips
for Newlyweds
Strong Dollar,
Weak Dollar
Baby Boomers
Turn 60 — What
Comes Next?
Departments
News of Note
1
Show Us
2
Smart Shopper
3
Look for these symbols throughout the
magazine to learn more about related PNC
products. They’re color-coded to the PNC
Products and Services section in the back.
Making a Difference
3
One Customer’s Story
8
Å Personal Banking
17
Small Business Solutions
Å Business Banking
25
ÅÅ
Å
Å
Å Consumer Investments and
Wealth Management
30
News
of Note
If happily ever after isn’t enough
to get you to the altar, maybe
dollar signs will help.
Researchers at Ohio State
University found that people
who marry accumulate wealth
much faster than single people
do. In fact, their net worth was
a stunning 93% higher. On the
other hand, divorced couples
experienced a 50% or greater
decline in net worth, as the
marriage bonus dissolved into
legal fees, separate residences
and other new expenses.
Challenges, uncertainty and
what you can do about it.
Joseph C. Guyaux
President, The PNC Financial Services Group
$11,418
See how a conversation with PNC helped
a widow get her financial life in order.
14
Life and Money
15
Products and Services
16
PNC Directions is published by Standard & Poor’s Financial Communications for The PNC Financial Services
Inc. Copyright © 2006, The PNC Financial Services Group, Inc. All rights reserved. No material may be
PNC Directions Group,
reproduced in any form without the express written permission of PNC. This publication may provide reference
to Internet sites as a convenience to our readers. While PNC endeavors to provide resources that are reputable and safe, we cannot
be held responsible for the information, products or services obtained on such sites and will not be liable for any damages arising
from your access to such sites. The content, accuracy, opinions expressed and links provided by these resources are not investigated,
verified, monitored or endorsed by PNC. Information contained herein is believed to be accurate as of August 2006. These articles
are for general information purposes only and are not intended to provide legal, accounting or financial advice. PNC urges its
customers to do independent research and to consult with financial and legal professionals before making any financial decisions.
The opinions and views expressed by the authors do not necessarily reflect the opinions and views of PNC or any of its
subsidiaries or affiliates, nor does the inclusion of the articles in this magazine constitute endorsements by the authors or
PNC of any of the products or services of others referenced herein. Certain characters represented in this publication are
fictitious and are provided for discussion purposes. Any similarities to any person living or dead are purely coincidental.
Vol.5 Iss.1
$3,753
The Marriage
Advantage
Married
Couples
Singles
AV E R AG E S AV I N G S
PER YEAR
Source: SmartMoney, June 2006.
Women-Owned
Businesses:
Small by Choice?
Most College
Savers Are Late
Out of the Gate
Think Mrs. Field’s. Mary Kay.
Martha Stewart. These women are
influential reminders of the female
entrepreneurial spirit. Here are some
of the latest trends on women and
small business.
Parents of college-bound teens appear to be dragging their
feet when it comes to researching the best ways to pay for
their kids’ education. Fifty-seven percent (57%) of adults polled
recently said they started looking into college costs after their
child had already entered high school, while just 11% started
planning when their child was a newborn.
Nearly 50% of the 10.6 million
privately held companies in the
United States are owned by women.
The Challenge for Late Starters: Rising College Costs
58% of women who own
companies larger than $1 million feel
the Internet plays a significant role
in business, compared to only 35%
of men.
Just 6.6% of businesses larger
than $1 million are owned by
women. Yet, many prefer to keep
their businesses small in order to
preserve a certain lifestyle or to
retain control over the destiny of
their companies.
Source: Center for Women’s Business Research.
2005-2006 School Year
(AVERAGE COST FOR ONE YEAR OF TUITION, ROOM AND BOARD
AND FEES):
$12,127
Public College
Private College
$29,026
Future College Costs
( FO R TO DAY ’ S N E W B O R N S , E S T I M AT E D AV E R AG E C O S T FO R
O N E Y E A R O F T U I T I O N , R O O M A N D BOARD AND FEES*):
Public College
Private College
$29,185
$69,855
*Assumes a 5% average annual inflation rate.
Sources: Academic Management Services; The College Board; Standard & Poor’s.
≈
PNC Directions 1
Smart
Shopper
S h ow U s
Making a
Difference
She says: I would advise Cynthia to start saving
Cynthia
Lamonte:
Pursuing
Long-Term
Security
Cynthia Lamonte is a
40-something single mother
who’s eager to build up an
emergency fund, but doesn’t
really know where to start.
Because she always seems to
have very little free time —
or free money — Cynthia
was a bit intimidated about
trying to start taking control
of her financial life. But
when she heard that interest
rates on many savings
accounts have recently gone
up, she decided it was time
to get organized and do a
better job of planning for
the future.
Here’s how the professionals
at PNC Bank could help
Cynthia (and others in
her situation).
on a regular basis by signing up for PNC Bank’s
automatic savings program, which she can set up to
transfer money from her checking account into her
savings account on a weekly, biweekly or monthly
basis. PNC offers a variety of savings options,
Clarice Womack,
including a Premium Money Market Account, which
Branch Manager,
Pine Branch,
gives you ATM access, checkwriting privileges and
Erie, PA
online account access, while earning a higher
interest rate than a simple savings account. Once
Cynthia gets her emergency fund established, I’d ask about her other
priorities and encourage her to have a budget for short-term as well
as long-term goals.
I teach a budgeting class, and people always say to me, “I can’t afford
to save.” So I give them an expense tracker, and they track their
spending each day. They often find that they’re spending more money
than they realize. It might be something like getting your nails done
or buying lunch out. Cynthia may be in the same position. If that’s
the case, I would help her take a fresh look at her expenses, suggest
ways for her to spend less and put that extra money in her account
each month.
He says: For a single mother like Cynthia, having
Tim Hunter,
Branch Manager,
Friendship
Branch,
Washington, DC
a healthy financial plan is imperative. And having
an emergency fund is a first step for anyone in her
situation. Ideally, she should have at least enough
money set aside to pay routine bills for three to
six months. That way, if some sort of emergency
arises, Cynthia will have resources available that
she can tap into without any penalties.
As Clarice mentioned, PNC has many types of
accounts to help someone like Cynthia. In addition
to traditional savings and money market accounts, we also offer
certificates of deposit (CDs), which typically pay a higher interest rate
than traditional savings accounts. Rates are currently in the 4% to 5%
range and are guaranteed for a specified term. CDs can be one of the
easiest ways to save if you don’t need immediate access to your money.
But in addition to products, I would also point out that the advice
Cynthia would receive from PNC Bank would make it easy for her to do
her banking and budgeting and to take control of her financial life.
Every bank has saving accounts, but here at PNC Bank, the service
and professional advice is what can really make a difference.
For more information:
Å Personal Banking/Checking Accounts page 19
Å Personal Banking/Savings Accounts page 21
2 Volume 5, Issue 1
Adjustable- and
Fixed-Rate Mortgages:
Saving Today vs.
Saving Tomorrow
Attention current and future homeowners: One way
to save may hit close to home — literally. When
shopping for a home, is a fixed-rate or an adjustablerate mortgage (ARM) best for you? It depends.
Answering a few questions may help you decide.
Do you intend to remain in your home only for a
? few years?
●
Will interest rates likely remain the same or
?
●
increase in the near future?
Can you afford to make higher mortgage payments
?
●
if rates increase?
If you answered yes to these questions, you might
want to consider an ARM. The initial interest rate is
typically lower than with a fixed-rate mortgage,
allowing you to possibly qualify for a larger mortgage.
Additionally, your initial monthly payment is also
lower and remains stable for a specific period of
time — often from 1 to 10 years — depending on
the terms of the ARM.
Once the adjustable feature of the mortgage kicks
in, your mortgage payment will periodically change
to reflect the current interest rate. An ARM also
has a “cap,” which limits the percentage that the
interest rate can increase at one time and over
the life of the mortgage.
A fixed mortgage rate, on the other hand, is just
what it implies. The interest rate remains the
same throughout the life of the loan. We can help
you crunch the numbers to aid your decision.
Visit pnc.com, click on Personal, then “Buying a
home (right side of page), then scroll down to
“Which is better: fixed or adjustable?” under
Home Calculators.
A Little Bit of
Your Time Can
Go a Long Way
Americans are known for their generosity
when it comes to supporting causes that are
important to them and their communities.
In fact, about 65 million people in the United
States volunteered some of their time last
year, according to a survey by the Corporation
for National & Community Service. Even still,
finding volunteers is an ongoing struggle for
charities and non-profit organizations.
If you’re looking to make a difference in your
community, there are a number of ways you
can pitch in. There’s a good chance your
child’s school or a local senior center,
or hospital or other community-based
program, is in need of volunteers.
Many volunteer activities are a joint effort
between organizations. PNC Bank, for
example, has partnered with Sesame
Workshop and Family Communications, Inc.,
to create PNC Grow Up Great, a 10-year,
$100 million program designed to help
young children prepare for school. More
than 4,000 PNC employees have volunteered
their time to this cause. For more information,
about PNC’s community involvement, visit
pnccommunityinvolvement.com.
For more information:
Å Personal Banking/Loans and Credit page 23
PNC Directions 3
C ove r
Story
Tip! Talk Early — And Often
Your Financial “I Do” List
According to Nan Mead at the National Endowment
for Financial Education (NEFE), conversations like
the one the Coras had can make a big difference in
the lives of newlyweds.
“Because financial issues sometimes cause conflict
in a relationship, many people won’t discuss them
before marriage,” said Mead. “And that can lead to
even greater problems afterwards, when the couple
has to deal with financial issues on a daily basis.
Talking, and compromise, often go a long way
toward resolving such problems.”
In many cases, the seeds of a married
couple’s financial success are planted
before the marriage even takes place.
However, it’s never too late to get on the
right track. The tips outlined below will help
newlyweds from all walks of life make the
most of their shared goals and financial
well-being.
... we were so focused on the
event itself that we never even
I Do!
thought about the role that
money would play in our life
Financial Tips
for Newlyweds
Two weeks before they got married, Greg and Sylvia Cora, both 27 from
northern New Jersey, had a somewhat heated discussion about money.
The Coras suddenly realized they had significantly different views about
spending, saving and their future financial goals. As it turns out, that
discussion may very well have been the best thing that happened to Greg
and Sylvia. Today, they’re more confident than ever about the future.
“Sylvia and I planned and financed our own wedding,
so we had to create a wedding budget to make sure
we didn’t overextend ourselves,” said Greg, a finish
carpenter. “But we were so focused on the event
itself that we never even thought about the role that
money would play in our life after the wedding.
Although we had spoken in great detail about the
financial aspects of a one-day ceremony and
celebration, we hadn’t even spent five minutes
discussing our life-long financial priorities.”
4 Volume 5, Issue 1
Greg smiled as he recalled the exact moment when
their outlook started to change.
“One day while driving to see the caterer, we began
talking about what we hoped to accomplish in the
years ahead,” Greg said. “And we had a lot of the
same goals — starting a family, buying a house,
retiring together, etc. But it quickly became
apparent that we both had completely different
views on how to get there. Although that was a bit of
a nerve-wracking revelation, it also felt great to
finally start addressing our future financial needs.”
after the wedding.
Before the wedding:
Tip! Get to Know Your Financial Personalities
Mead also said that one of the biggest challenges
facing newlyweds is the fact that many spouses have
very different “money personalities.”
“If that’s the case, then you both need to be candid
in assessing your own financial behavior,” explained
Mead. “Consider how willing you are to alter your
money personality to make it a better fit with that
of your spouse. But don’t expect miracles to occur
overnight. Develop a solution both parties can live
with, and ease into it over time.”
That proved to be excellent advice for newlyweds
Adriana and David Green, who just bought their first
home in Pittsburgh.
“I’m a spender. David is a saver,” said Adriana,
a 33-year old hair stylist. “I’m comfortable taking
financial risks when I invest; he’s more conservative.
I also have a six-year old son, Jesse, which means I
have additional financial responsibilities. Instead of
viewing our situation as a problem, David and I used
✓ Create — and stick to — a wedding budget
●
✓ Discuss shared goals (including
●
anticipated time frames)
✓ Talk about the sharing/management of
●
financial responsibilities
After the wedding:
✓ Review investment accounts and readjust
●
if necessary
✓ Increase life insurance coverage
●
✓ Update beneficiary designations on
●
financial accounts, insurance policies, etc.
✓ Schedule a meeting with a financial
●
professional
✓ Begin setting aside money in an
●
emergency savings or money market
account
✓ Contribute as much as possible to
●
workplace retirement plans and/or IRAs
continued on page 6
PNC Directions 5
Successfully Single
Alicia Monroe is a 31-year-old yoga instructor from Scranton, Pennsylvania, who has
never been married — and who doesn’t plan on getting married anytime soon. However,
Alicia is living proof that the strategies singles can use to address their financial priorities
and challenges aren’t necessarily all that different from the strategies married couples
can employ to plan for their future.
“I’ve lived on my own since I was 19, so I’ve always been good at making ends meet,”
explained Alicia. “But I also have long-term goals that are important to me, such as
buying a home, opening my own yoga studio and retiring early.”
With clear goals in sight, Alicia knows that she needs to do more than just make her
income last until the next payday. She also recognizes that she needs to set aside money
on a regular basis for each of those goals. “That’s why I’m saving for a down payment on
a house and contributing the maximum amount allowed to my IRA every year.”
Another important part of Alicia’s strategy is what she refers to as her “financial
contingency plan.”
continued from page 5
it as an opportunity to learn more about ourselves,
each other and the financial strategies we’ll
use to prepare for the future.”
Tip! Move from Talk to Action
Here’s a Good Way To
Get on the Same Page
Want to make sure that you and your
fiancée or new spouse see eye-to-eye in
terms of managing your finances and
setting financial priorities? Go to
www.pnc.com and download a copy of
our His and Her Financial Questionnaire.
Print out two copies and then have both
you and your spouse-to-be fill them out
separately. Once you’re done, get
together, compare your answers and
then have a heart-to-heart talk about
how to resolve any differences. You’ll
find that this exercise will more than
likely be time well spent!
6 Volume 5, Issue 1
The Greens have done more than simply talk about
money. Just days after returning from their
honeymoon, they made an appointment at their
local PNC branch to begin implementing forwardlooking financial strategies, such as automating
their finances whenever possible.
“With help from the people at PNC, we set up
accounts that let us save money and pay routine
bills automatically each month,” Adriana said.
“And acting on advice from PNC, David and I also
sat down together to create a household budget,
which was quite an interesting experience. Having a
budget let us compare how we should be spending
our money with how we were actually spending it.
Within a month, it became clear that we weren’t
being as careful as we thought. So we cut back on
unnecessary expenses and that, in turn, let us start
setting aside even more money every month. That
also allowed us to be able to set up an education
savings fund for Jesse’s future.”
For Alicia Monroe,
savings is no
longer a stretch.
“Because I don’t have family supporting me or
a spouse providing extra income, I worry about
what would happen if I lost my job or experienced
a major health problem.” That’s why Alicia has
become such a disciplined saver, setting aside
enough emergency savings in a PNC money
market account to cover her routine expenses
for several months.
As an added layer of protection, she also
purchased disability insurance so that she
would be “okay” financially should something
really go wrong with her health and knock her out of work for an extended period of time.
“Hope for the best but plan for anything — that’s my motto,” said Alicia.
So far, Alicia’s motto has served her well. As a result, her enthusiasm for the future
knows no bounds.
Tip! Refocus on Retirement
Next on the Greens’ agenda was a formal review of
their retirement savings strategies to determine
whether the investment choices each had made
before marriage were still appropriate.
“Right away we noticed that we held some of the
same investments in our respective workplace
retirement accounts, so we decided to view the
two as one big portfolio and diversify accordingly,”
explained David, a 39-year-old computer support
supervisor for a telecommunications company. “We
also calculated our retirement savings goal together
for the first time and concluded that we should set
aside more money each month to pursue that goal.
Because we’ve been good about sticking to our
budget, that was easier to do.”
Needless to say, though, talking about money
and planning your financial strategies together
is sometimes easier said than done. But NEFE’s
Nan Mead pointed out that working with an impartial
expert might be the best way to resolve differences
and begin moving forward in unison.
Having a budget let us compare
how we should be spending
our money with how we were
actually spending it.
“That can be an excellent step for couples
whose emotions, reluctance to admit to moneymanagement mistakes, or unwillingness to change
have prevented productive discussions,” Mead said.
“Having a third party serve as an intermediary
will often result in a clarification of the issues
that the couple has either been overlooking
or avoiding.”
If you’re a soon to be newlywed or are recently
married, PNC can help you put financial strategies
in place that take into account your shared goals
and vision for the future. Stop by your local PNC
branch today for more information! ■
For more information:
Å Personal Banking/Checking Accounts page 19
Å Personal Banking/Savings Accounts page 21
Å Personal Banking/Loans and Credit page 23
Å Investments/Investment Account Options page 30
PNC Directions 7
One
Customer’s
Story
Strong Dollar, Weak Dollar —
What It All Means for Your Wallet
After her husband’s passing,
PNC helped Margaret Billings
get organized.
It’s Never
too Late
to Start Managing Finances
Margaret Billings will never forget that day nine months ago when she stepped into the PNC Bank near
her home in State College, Pennsylvania. Her husband, Ralph, had recently died and her son, Charlie,
suggested they visit their local PNC branch to gain a better understanding of her finances. Looking back,
it was a sound financial decision.
employee because the bank
always puts customers first.
“When I first met Margaret,
I could tell she was a little
apprehensive, so I just listened.
I understood that she wanted to
take control of her financial life
without spending a lot of time
doing so. After we reviewed her
accounts, I made a few suggestions to help her do just that.”
A Worthwhile Visit
Financial Tune-Up
“As soon as Charlie and I stepped
into the bank, we were greeted
with big smiles from the staff,
which immediately made me
feel more comfortable,” said
Margaret. “Branch manager
Dennie Fetzer sat down with us,
answered all of my questions and
then asked a few of his own. I still
can’t believe how patient he was!”
Margaret took advantage of PNC’s
new Performance Checking
account. That gave her free ATM
access everywhere in the world,
which is great for Margaret
because she plans to travel more
in the years ahead. This type of
account also earns interest, giving
her even more reasons to smile.
For his part, Dennie noted that
he’s proud to be a PNC Bank
For more information:
8 Volume 5, Issue 1
You may have heard news reports about the decline of the U.S. dollar. Your
reaction? Likely a yawn. But the truth is that the value of the greenback has ripple
effects throughout our economy, ultimately affecting your personal finances.
Making Sense of the Exchange Rate
“I felt pretty overwhelmed after
Ralph passed on, and I had
always relied on him to keep
track of our bank accounts
and investments,” admitted the
65-year-old retired postal clerk
and grandmother of four. “But
because I didn’t want my children
to take on that burden, I decided
it was high time for me to at least
find out what was involved.”
Other changes she decided to
implement to save time and
simplify her financial life:
E ye o n t h e
E co n o m y
• Sign up for direct deposit for
her Social Security check
• Sign up for free online banking
so she could transfer money
between accounts and have
access to budgeting and financial planning information,
which will be helpful when
visiting family or traveling
• Meet with a PNC Investments
Financial Consultant to
integrate her investments
under one umbrella and
update her estate plan
First, the basics. What does it mean when the
U.S. dollar has declined or increased in value?
In plain English, it refers to the amount of money
you get when you exchange a dollar for another
country’s currency. When the dollar rises,
you’ll get more bang for your buck. When it
declines, the opposite occurs.
If you’ve traveled abroad, you’ve experienced the
effect firsthand. If the dollar declines, it costs you
more when visiting another country because
you won’t receive as much of the foreign currency
when you exchange your dollars.
Beyond foreign travel, there’s also an investment
component. “Changes in the exchange rate, if
large, could affect the amount of money that
flows into U.S. companies, in the form of stock
investments, and into financing our government
debt, through Treasury bonds,” said Stuart
Hoffman, PNC Financial Services Group’s
Senior Vice President and Chief Economist.
“If the dollar were to suddenly nosedive, it would scare
away foreign investors,” Hoffman explained. “Why
would they want to continue investing in our country
if the value of their investment drops sharply?”
The value of the dollar affects
you both in the interest rate you
are charged for loans and in
everyday purchases.
And because we’re talking big bucks here — this
summer, more than 50% of U.S. bonds and 13% of
U.S. stocks were held by foreigners — a broad sell-off
by foreign investors could put a drag on our economy.1
The Global Connection
Interesting information, but why should you really
care about the value of the dollar? Because ultimately it affects the American consumer both in
the interest rate you’re charged for loans and
in everyday purchases.
Source: The New York Times, June 11, 2006.
1
continued on page 10
“Ralph enjoyed spending hours
researching stocks and watching
the business news,” noted
Margaret. “Me? I want to make
informed financial decisions but
prefer to spend time with my
grandkids and do the volunteer
work that I so enjoy.” ■
Å Personal Banking/Checking Accounts page 19
Å Investments/Investment Account Options page 30
PNC Directions 9
E ye o n t h e
E co n o m y
continued from page 9
Think about the car you drive, the clothes
you wear, your cell phone or your computer. Chances are many of these items
are produced and imported from abroad.
So the price you pay for these goods is
going to depend on the value of the dollar.
“If the value of the dollar is stable or
rising,” said Hoffman, “our greenback will
have more purchasing power, and if it
declines over a long period of time, we’re
eventually going to pay more for these
imported products.” Higher consumer
prices contribute to the dreaded “I” word —
inflation — which also could lead to higher
interest rates, affecting the rate you’ll
be charged for a mortgage or car loan.
So the next time you hear a news story
about the value of a dollar, listen up. It
may hit closer to home than you think! ■
H OW I T A L L A F F E CT S YO U
When the dollar is strong
When the dollar is weak
At home
Abroad
Prices of consumer goods
don’t increase as much
Your dollars go further
Prices may increase; interest
rates may go up
Goods and services are more
expensive relative to the dollar
Foreign Affairs: In Your Best Interest?
How does the value of the dollar influence interest rates? Well, it has to do with another term
that’s likely floated in one ear and out the other — the trade deficit. This refers to the difference
between all the money that Americans spend to buy products made abroad versus the total
amount of money that foreigners spend to purchase goods or services made in the good old U.S.A.
We import more foreign goods than we export to other countries — to the tune of about
$800 billion this year alone, according to Hoffman. In fact, the trade deficit is on course
to set an all-time high: In June it was already running 6.4% higher than the previous
record set in 2005.2
If the dollar declines in value, Americans need more dollars to buy the same goods from
foreign countries. If we continue to buy more products from other countries than we sell
to them, over time, it gets harder and harder to make up the difference. That brings us
back to that dreaded “I” word again — inflation.
2
Source: The Wall Street Journal, June 9, 2006.
10 Volume 5, Issue 1
Baby
Boomers
Turn 60
Fe a t u re
Story
What Comes Next?
This past January, the first of the
76-million-plus Americans known
as the Baby Boom generation
started turning 60. Within the
next five years, Boomers will
begin to retire — or will they?
In their sheer numbers, the Baby
Boomers have reshaped our society,
our economy and our vision as a nation.
Expectations are running high, as
survey after survey documents how
Baby Boomers reject the notion of
retirement as idle leisure.
“This generation will not retire in the
traditional sense,” said Elyse Pellman,
Executive Vice President of Age Wave,
a strategic research and consulting
group focused on Baby Boomers and
the mature market. “Some will start
new businesses. Some will go back to
school. We see Boomers cycling between
work and leisure and treating retirement
in a whole new way.”
This may sound like what one would
expect from the Boomer generation —
known for their idealistic, “glass is half
full” way of thinking. However, if you’re a
Baby Boomer, listen up. Retirement may
be a bigger challenge than you think … or
have planned for.
The Boomerang Effect
The demographic heft that has given Baby Boomers
their influence is about to swing the other way, creating
what could be the biggest financial challenge of their
lives — ensuring a comfortable retirement. Consider
the following:
• Lengthening life spans. Boomers are expected to live
longer than any previous generation. Of the 3.4 million
born in 1946, 2.8 million are still alive. The men can
expect to live another 22 years, the women another 25.1
Living longer, hopefully, healthier lives is certainly a
reason to celebrate. The potential downside of a longer
life, however, is the chance that you’ll outlive your assets.
• Dwindling support from Social Security. One of the
dangers of an aging society is the added burden placed
on government programs, such as Social Security. Today
there are roughly 3.5 workers paying taxes to support
each beneficiary. Over the next 30 years, that ratio is
expected to drop to 2 to 1, while the retiree population
swells. The upshot? The government’s ability to provide
retirement support will be diminished as demand grows.
Source: WebMd.com, Jan. 9, 2006.
1
continued on page 12
44% of the people who retire and then return to work in their 70s
are still paying off their mortgages. — Minneapolis Star Tribune, Jan. 8, 2006.
PNC Directions 11
LEILA VARGAS
Old Is as Old Does
A recent survey of 1,400 adults aged 50+ found a major
gap between what they say is important to staying healthy
and what they actually do to achieve health.
To stay healthy … Very important to do
Exercise
67%
Eat a balanced diet
67%
Drink plenty of water
65%
Watch weight
64%
Get routine health care
63%
Get enough sleep
63%
Watch what I eat
61%
Take vitamins
45%
Limit calories
44%
Do all the time
21%
28%
44%
27%
49%
29%
28%
50%
16%
Source: Southeastern Institute of
Research/Boomer Project, Boomer
Trend Report, December 2005.
continued from page 11
• Shrinking pension coverage. The number of
private companies offering pension plans has
been shrinking dramatically since the 1980s.
Companies are either phasing out pensions
entirely or replacing them with defined contribution retirement plans, such as 401(k)s, which put
the burden to save on individual workers.
• Spiraling health care/elder care costs. Longer
life spans could be a burden physically, emotionally
and financially if additional years are spent in frail
JAMES MCGUIRE
Age: 50
Occupation: Mechanical Engineer
James is married with two kids,
Keisha, who started college last
fall, and Ben, a high school junior. James and
his wife, Sarah, have a $100,000 home equity
line of credit, a third of which has paid for
Keisha’s first year of college. The remainder
has gone into an extensive home expansion/
remodeling project. “I save enough in my
401(k) to get the company match, but that’s it
for retirement for now. Basically, I’m counting
on making a nice profit on my house at some
point and using that to fund retirement.”
12 Volume 5, Issue 1
health or battling chronic illness. The percentage
of private employers cutting back or eliminating
retiree health benefits continues to climb, as does
the cost of long-term care. It is the unpredictability
of these costs — and their ability to pay for them —
that Boomers fear above all else.
Getting There — Planning Your Future
One Day at a Time
There’s no denying challenges lie ahead for the
Boomer generation. “But there are things you can
begin doing at age 45 knowing that you are likely
to live for a long time,” Pellman suggested.
Take care of yourself. Of course there is no
guarantee of good health, but people can help
reduce the chances of developing a major illness
by following a healthy lifestyle.
Prepare your way to financial freedom. “It’s the
Boomers in average jobs with average incomes
who are most eager to retire. Unfortunately, they
are also the least prepared financially,” Pellman
observed. Boomers who plan to retire at age 65
need to have enough money to support themselves
for 20 to 25 years. That means you should:
• Maximize tax-deferred plans. Take full advantage
of the planning tools available to you — 401(k)s,
IRAs and other tax-deferred retirement accounts.
• Keep stocks in your investment mix. Over the
long term, stocks have done a better job of
staying ahead of inflation than any other type
of investment. (Past performance does not
guarantee future results.)
• Consider long-term care insurance. LTC insurance
can protect your family’s assets from the rising
costs of supporting someone who needs fulltime care. Consider buying it at a younger age,
when it is more affordable and accessible.
• Pay off your mortgage. You’ll drastically reduce
your future housing costs, which may allow you
to live on less in retirement.
Tap your nest egg gently. When figuring how much
of your retirement nest egg you can spend each
year, be realistic: The amount you’ve saved and the
length of your retirement will determine your annual
withdrawal amount. In general, financial planners
recommend that retirees withdraw no more than
4% to 5% of their portfolio’s value annually to
avoid the possibility of outliving their money. ■
Age: 60
Occupation: Physician’s
Secretary
Leila was a stay-at-home mom
until divorce sent her to work and into debt
10 years ago. She recently made her son’s last
student loan payment and intends to put that
extra monthly cash into her office’s retirement
program. “I increased my contribution rate to
20% of my salary this year. I can’t afford to
make the extra $5,000 “catch-up” contribution
I’m eligible for, but I’ve decided to save every
raise and bonus I get from now on. I know I’m
in catch-up mode, so every little bit helps.”
Workers aged 50 and older
report having an average
401(k) balance of $112,000.
— Employee Benefit News, Jan. 26, 2006.
How Will the Retirement Boom Affect the Job Market?
The Bureau of Labor Statistics predicts that between 2003 and 2008, there will be a workforce
shortage caused by retiring Boomers that will be greatest for occupations and industries that are
less reliant on technology-driven productivity, such as education and health services.
Retiring Boomers Will Create Job Opportunities
Employees needed to replace
Occupation
retirees (2003 to 2008)
Elementary school teachers
237,000
Registered Nurses
188,000
Administrators (education, related fields)
101,000
Public officials
81,000
Financial managers
58,000
Lawyers
57,000
54,000
Social workers
52,000
Teachers’ aides
Plumbers, pipefitters and steamfitters
36,000
Postal workers (except mail carriers)
30,000
894,000
Total
Source: Bureau of Labor Statistics, “Gauging the Labor Force Effects of
Retiring Baby Boomers,” Monthly Labor Review, July 2000.
For more information:
Å Personal Banking/Loans and Credit page 23
Å Investments/Investment Account Options page 30
PNC Directions 13
Four Good
Reasons
Small
Business
Solutions
Not to Borrow
From Your
Retirement Plan
Jumping Ship —
What You Can Do to Keep
Your Best Employees
The way Jim Baylor sees it, it’s tough
enough finding skilled workers in his
industry, so once an employee proves
to be a valued asset, he does all he
can to keep him or her happy.
“We try to make the experience of working here
a positive one,” said Baylor. “That involves paying
above-average wages, offering time off with pay,
and offering a variety of employee benefits that can
make a real difference in people’s personal financial
lives. I believe in treating people fairly and keeping
the lines of communication open. I try to get people
involved in decision-making so that everyone is
on-board with attaining the company goals.”
Jim’s approach, according to retired executive and
SCORE volunteer Robin Noah, is right on target with
what small business owners need to be doing to
retain talented employees. “There is a realization out
there among employers that in order to compete for
a limited talent pool in a strong job market, they need
to offer more than just a paycheck,” Noah observed.
Competitive pay and paid vacation time had been
the longstanding rule for the tile and stone fabricating business since Baylor’s father started it in
1977. But when Baylor took over for his father
nearly eight years ago at the age of 35, he realized
that in order to keep his employees, he would
need to offer some additional benefits. “When
I was learning Dad’s business, I essentially grew
up with many of our employees. And when I took
over, I knew that we shared many of the same
responsibilities outside of work, like providing for
a young family or saving for the future,” reflected
Baylor. “Without some basic benefits to address
these issues, I knew I’d start losing good people.”
14 Volume 5, Issue 1
Happy workers — (left to right): Joe
Driscoll, Mac Terrell and Bobby Sandau
are veteran employees of Baylor Tile &
Marble, and don’t plan on leaving.
Business: Baylor Tile & Marble Company
Location: Louisville, KY
Number of Employees: 18
In the eyes of many workers, borrowing
money from an employer-sponsored
retirement plan, such as a 401(k), may
seem like an effective solution to a
pressing financial need.
But gaining access to your retirement
investments in order to enhance your
short-term cash flow isn’t necessarily
the best long-term strategy. In fact, it
could make it harder to achieve financial
security later in life.
D R AW B AC K # 1 : No Tax Benefits
So, the first thing Baylor did was offer his employees
a low-cost health insurance plan. He then put in
place a 401(k) plan with the help of PNC Bank.
“My employees were — and still are — extremely
grateful,” explained Baylor.
While those benefits are important, there are other
ways Baylor is helping employees. Case in point:
In a recent meeting with PNC, Baylor discovered
PNC’s Workplace Banking, a comprehensive financial management program that offers direct deposit
of payroll checks plus an array of money management tools, information and educational seminars.
“The program costs me almost nothing,” said
Baylor, “and my staff loves the convenience of
direct deposit and 24/7 account access either by
phone, fax, ATM, Internet or regular mail.”
There are all types of employee benefits for all types
of budgets. The important thing, concluded Noah,
“is that employers recognize the need for some type
of intervention. Employees need to see that their
contributions are meaningful to the company. This
encourages them to take a partnership role in the
company and makes them less likely to leave.” ■
For more information:
While plan loans may offer competitive
interest rates, the interest you pay is not
tax deductible. For that reason, it may
make sense to consider other types of
borrowing, such as a home equity loan,
that may allow you to deduct the interest.
Consult your tax advisor.
D R AW B AC K # 2 : Fees and
Other Potential Costs
Retirement plan loans may require borrowers
to pay administrative fees in addition to
interest. Furthermore, if you leave your
employer before you fully repay the money,
you may be required to repay the balance
immediately. Failure to do so may be viewed
as a withdrawal, which would then require
you to pay federal income taxes on the
outstanding loan amount. You could also be
subject to a 10% early withdrawal penalty by
the IRS if you are younger than age 591⁄2.
DRAWBACK #3: Missed Opportunities
Be aware of the potential “opportunity
cost” of borrowing from your retirement
plan — the cost of any potential return
you’ll miss out on if the interest rate on
the loan is lower than the rate of return
generated by the investments in your
account. For example, if you borrow money
from an account earning 10% and you pay
7% interest on the loan, you miss out on a
potential 3% return over the life of the loan
(see table below).
L i fe a n d
M o n ey
D R AW B AC K # 4 : It’s Your
Retirement We’re Talking About!
Borrowing money from your workplace
retirement plan is essentially like borrowing
from your future. Even if you eventually
pay it back, you could end up with less
money for retirement than if you never
borrowed the money (see table below).
With life expectancies continually on the
increase and a growing number of questions surrounding the future of Social
Security and corporate pension plans,
your financial success during retirement
will likely be up to you … and you only.
If you’re considering borrowing money
from your retirement plan, please be sure
to first speak with your local PNC Bank
branch manager for more information on
alternative lending solutions. ■
Other Borrowing Alternatives
May Make More Sense
Thinking of borrowing from your employer-sponsored
retirement plan? As a rule of thumb, you should not borrow
from your retirement plan if the interest rate on your plan
loan is less than the return you’re receiving on the investments in the plan. The example below takes a look at
the potential impact of borrowing $20,000 from your plan
versus taking out a personal loan for the same amount.
It assumes your investments in your retirement plan are
earning 10% and the interest rate on your loan is 7%.
Pre-Loan 401(k) Balance
401(k) Loan Amount
Personal Loan Amount
Monthly Payment
Borrow
from Plan
$50,000
$20,000
$0
$396.02
401(k) Balance After 5 yrs $80,281
Difference
-$1,984
Personal
Loan
$50,000
$0
$20,000
$396.02
$82,265
Å Business Banking page 25
PNC Directions 15
Å
Products
and
Services
Business Banking
Cash Flow
Page 25
• Keeping Liquid
• Making and Collecting Payments
• Online Information and Reporting
• Specialty Checking
Personal Finance
Personal
Banking
User’s
Guide
Fast Find
Page 27
• Personal Banking
• Investments
Financing
Personal Banking
User’s Guide
Å
Page 17
Value-Added Solutions
• Free Global ATM Usage
• Online Banking and Bill Pay
• Telephone Banking
• PNC Bank Visa® Check Card
• Visa Extras Rewards Program
• Branch Offices
Checking Accounts
Investments
Page 19
Page 21
Page 23
• Home Equity Loans and Lines of Credit
• Personal Loans
• Education Loans
• PNC Bank Credit Card
• Payment Protection
deposit products provided by PNC Bank, National
◊ *Bank
Association and PNC Bank, Delaware. Members FDIC.
All loan products are subject to credit approval.
Å
Investment Account Options Page 30
• Savings Account
• Premium Money Market Account
• Certificates of Deposit
• Individual Retirement Accounts (IRAs)
Loans and Credit
Page 29
Å
Around the corner. Around the world. Around the
clock. Accessing your accounts has never been easier
or more convenient. With 24-hour online and automated
phone access, a network of more than 3,600 PNC Bank
ATMs and over 850 branch offices, we make it easy for
you to stay connected to your finances.
Free Global ATM Usage
• Free Checking
• Performance Checking
• Performance Select Checking
• Foundation Checking
Savings Accounts
Page 27
• Managing Cash Flow
• Growing Your Business
• Conducting Everyday Business
Å
• Investor’s Preferred Account
• Individual Retirement Accounts (IRAs)
• Capital Directions®
• 529 Plans
• Coverdell Education Savings Account
• Retirement — Small Business
• Mutual Funds
• Municipal Bonds
• Fixed Annuities
• Variable Annuities
• Wealth Transfer Solutions
• Long-Term Care
• Online Account Access
Wealth
Management
Page 32
With select PNC Bank checking accounts, you
can use any ATM — anywhere around the world —
at no cost to you. Of course, there is never a fee
from PNC to access your funds at one of our own
ATMs. But now, if you’re a Performance Checking
or Performance Select Checking customer, or a
Free Checking customer who maintains an
average monthly balance of $2,000 or more, PNC
Bank will automatically reimburse you for any fees
charged by other ATM owners. So go ahead and
pull out your card whenever and wherever you want.
Online Banking and Bill Pay
You can bank and pay bills securely whenever and
wherever it’s most convenient for you with this
free service1. With PNC Bank Online Banking and
Bill Pay — just two of PNC Bank’s many ComesWith ServicesSM — your identity and account
information are protected with PNC Security
Assurance (see page 18 for more information).
Check your PNC account balances, transfer funds,
view and print images of your checks up to 90
days, view, print or download online statements,
and pay your bills quickly and securely online. You
can also reorder checks, change your mailing or
email address, make payments on PNC loans, and
move money within PNC accounts or between
your PNC accounts and accounts you hold at
Checking Accounts
Savings Accounts
Money Markets
CDs
IRAs
Loans and Credit
19
21
21
21
21
23
Para servicios en español,
1.866.HOLA.PNC
other financial institutions. You can even set up
recurring payments so that, for example, your
mortgage or car payment is automatically made
each month on the date you specify - and you
don’t have to think about it. What’s more, you’re
covered - 100% - for any verified, unauthorized
online transactions or failure on our part to meet
a payment deadline.2
Telephone Banking
If you don’t have access to a computer, simply
call us, 24 hours a day, to: Access up-to-the-minute
account balances and recent transactions; transfer
funds between accounts; get rate information; find
the nearest branch and more.
Free PNC Bank Visa® Check Card
Why bother with cash, when all PNC Bank checking
accounts come with free PNC Bank Visa Check
Card? Your check card enables you to make purchases at millions of locations around the world
where Visa Debit is accepted. It also allows you to
access your PNC accounts at more than 3,600
PNC Bank ATMs at no charge — with free global
ATM usage for many customers (see above).
There may be a fee for certain services within Online Banking.
Please see our Consumer Schedule of Service Charges and
Fees – Images and Copies.
2
Subject to guidelines set forth in the PNC Bank Online Banking
and Bill Pay Service Agreement.
1
Are You a Quicken® User?
PNC also offers free online banking and bill pay via your personal Quicken software. To find out
more, visit the Online Banking Center at pnc.com.
Quicken® is a registered trademark of Intuit®, Inc.
16 Volume 5, Issue 1
1.888.PNC.BANK pnc.com
PNC Directions 17
Additional Comes-With Services∑
Every PNC Bank checking account comes with a
wealth of features designed to make your life
easier and your banking more convenient.
PNC Security Assurance — Enjoy peace of
mind for all the ways you bank today. Security
Assurance is an array of products, services and
account features designed to help prevent, detect
and resolve fraud and identity theft. 1
Direct Deposit — Get your money the same day
you’re paid — with complete convenience and security. With Direct Deposit, your paycheck, dividend,
pension or Social Security check can be automatically deposited into your PNC checking account.
and view, print and download online statements
for recordkeeping.
AutoAlerts® — When you sign up for this free
service, you’ll be notified by email whenever your
account balance falls below or exceeds an amount
you specify, when your account is overdrawn or
when a direct deposit is made to your account.
Automatic Transfers — With this free service,
you can set up automatic transfers from your
PNC Bank checking account to make regular
contributions to your savings, money market
or IRA Money Market account — and you can
specify the transfer amount and schedule that
works for you.
Overdraft Protection — You can protect your
credit record and stop worrying about costly and
embarrassing bounced checks by enrolling in
Overdraft Protection, which links your checking
account to a PNC credit card, another PNC Bank
checking or savings account or line of credit.
Automatic Payments — Take the hassle out of
paying your bills with this free service. You can
set up bills for Automatic Payments, and they’ll
be automatically deducted from your PNC Bank
checking account as often as you specify.
Online Statements — This free service enables
you to access statements for all of your PNC Bank
accounts securely through PNC Bank Online
Banking, view images of your checks and deposit
tickets for up to 18 months, review past statements
Automatic Check Reorder — Never worry about
running out of checks again when you sign up for
this free service. A reorder of your selected check
design will be placed automatically when you
near the end of your current order.
1
Availability varies depending upon the type of account you hold and whether you are a consumer or business customer.
Free Visa Extras Rewards Program
When you sign up for Visa Extras, your PNC Bank
Visa Check Card enables you to turn everyday
purchases into valuable rewards. Every time you
use your PNC Bank Visa Check Card to make
qualifying purchases, you earn points toward
exciting rewards like free air travel, unique dining
experiences, vacation getaways and tickets to
sporting events. You also can earn points when
you take advantage of Comes-With ServicesSM like
Direct Deposit or Online Bill Pay. Enroll at
pnc.com/extras.
Branch Offices
We have more than 850 locations in New Jersey;
Delaware; Pennsylvania; Ohio; Kentucky; Indiana;
Washington, D.C.; Maryland; and Virginia, including
many locations inside supermarkets where you
can bank late on weekdays, on weekends and
even on Sundays.
18 Volume 5, Issue 1
Checking
Accounts
The PNC Bank Visa Gift Card.
The Perfect Gift.
This prepaid Visa Gift Card can be used anywhere that Visa Debit is accepted. It’s the
perfect gift for every occasion. Available only to
PNC customers, it comes in denominations of
$25 to $500 and can be purchased at any PNC
Bank branch or via pnc.com. Each time the card
is used, the amount of the purchase is automatically deducted from the value loaded onto the
card. Unlike cash, the PNC Gift Card can be
replaced if it is lost or stolen, and it has the
same protection and
security features as the
PNC Bank Visa Check
Card. Graduations,
birthdays, weddings,
showers, you name the
occasion — the PNC Visa
Gift Card will always be
the perfect fit.
Personal checking accounts at PNC Bank provide you with a higher
level of performance than other checking accounts — and they all
come packed with valuable features that save you time and money.
All of our checking accounts give you the ability to
write checks, access ATMs and make purchases
with your PNC Bank Visa Check Card. How you wish
to use the account, the monthly balances that you
keep and the added benefits of each should guide
your selection of the account that’s right for you.
earn bonus rates on select PNC Bank CDs and
IRA CDs; and you’ll receive free Identity Theft
Reimbursement Insurance — up to $5,000. Don’t
forget about all the free Comes-With ServicesSM
you can sign up for as well.
Free Checking
For customers who have sophisticated banking
needs, we have taken the class-leading benefits
and features of PNC Performance Checking and
made them better in PNC Performance Select
Checking. Avoid the monthly service charge with
average monthly balances of $10,000 or more.
You won’t pay an ATM fee at non-PNC Bank ATMs
anywhere in the world, and we will rebate any
non-PNC ATM fees. PNC Performance Select
Checking gives you the option of having up to
nine free additional checking accounts where the
monthly balances count toward the $10,000
average monthly balance requirement for the
primary account. Plus, along with all of our
Comes-With ServicesSM, you get even more
benefits, such as free domestic wire transfers;
increased daily spending limits on your PNC Bank
Visa Check Card to accommodate large purchases;
and free overdraft protection set-up and transfers.
If you like to keep things simple and prefer the
basics that never go out of style, then PNC Free
Checking is the account for you. With Free Checking
there’s no minimum balance requirement and no
monthly service charge. In addition to free access
at PNC Bank’s more than 3,600 ATMs, you’ll also
enjoy reimbursement of fees charged at non-PNC
ATMs during any month when your average
monthly balance is $2,000 or more. And, like all
checking customers, you also benefit from rate
discounts on PNC Bank loans and lines of credit
with direct debit of your monthly payment from
your PNC Free Checking account, as well as
access to all of our Comes-With ServicesSM.
Performance Checking
You work hard for your money, and PNC Performance
Checking keeps your money working hard for you.
Avoid the monthly service charge when you keep an
average monthly balance of $2,500 or more, and
you’ll also earn tiered interest. Best of all you
won't pay an ATM fee at non-PNC Bank ATMs,
anywhere in the world and we will rebate any nonPNC ATM fees. And you’ll have other benefits such
as interest rate discounts on PNC Bank loans and
lines of credit with direct debit of your monthly
payment from a PNC checking account; the annual
fee is waived on PNC Bank lines of credit1; you’ll
1.888.PNC.BANK pnc.com
Performance Select Checking
Foundation Checking Account
Managing your money is a key part of managing
your life, and moving forward to accomplish your
goals. But as with anything, you need to have the
right tools to be successful. PNC’s Foundation
Checking Account and Money Management Class
are tools that can help you get where you want to
be, even if you’ve had problems with a bank
account in the past: A free checking account with
added benefits, and a class that teaches you how
to manage your account and develop and manage a
household budget.
PNC Directions 19
Checking Account Comparison Guide
Use this side-by-side guide to compare the features offered by our various checking accounts and select the
PNC Bank checking account that’s right for you.
ACCOUNT FEATURES
FREE CHECKING
PERFORMANCE
CHECKING
Average Monthly Balance to Avoid Monthly
Service Charge
$2,500
PERFORMANCE
SELECT CHECKING
$10,000, including balances
of up to nine additional
PNC checking accounts
Monthly Service Charge
$15
$25
Balance Earns Interest
On balances of $2,000+
On balances of $2,000+
l
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Free Global ATM Usage
(PNC and non-PNC ATMs)
Free Visa Extras Rewards Program
Bonus Points for Enrollment
Points for Qualifying Check Card Purchases
Monthly Bonus Points for: Direct Deposit
(DD) and Online Bill Pay (BP)
When Minimum Average
Monthly Balance is
$2,000 or More
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1,000
5,000
5,000
1 Point/$1
2 Points/$1
2 Points/$1
DD-100
BP-100
DD-150
BP-150
DD-200
BP-200
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Bonus Rates on Select CDs and IRA CDs
Discounts on Loans and Lines of Credit
with Direct Debit of Payment from Any
PNC Checking Account
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Free Additional Checking Accounts
Up to Nine
Free Money Market or Savings Accounts
Up to Five
Courtesy Overdraft Fee Waiver on First
OD/NSF Event Occurring in First Year
After Account Opening
Free Identity Theft Reimbursement Insurance
Free Select Design Checks
Discount on Safe Deposit Box
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Up to $5,000
Up to $10,000
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$10 Annual Discount
$100 Annual Discount
Free Standard American Express®
Traveler’s Cheques
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Free American Express®
Traveler’s Cheques for Two
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Annual Fee Waived for Lines of Credit1
Free Cashier’s Checks
Free Stop Payment Orders
Free Domestic Wire Transfers
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Savings
Accounts
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See the Consumer Schedule of Service Charges and Fees and the Consumer Account Agreement for more information and complete
details. 1Important Information for Home Equity Lines of Credit Initial Annual Percentage Rates (APR) currently range from 7.24% APR to
8.99% APR for loan to value (LTV) up to 90% and were accurate as of 01/02/2007. Your actual initial APR will be based on a review of your
credit application, LTV and the credit line amount. APR may vary thereafter. Maximum APR is 18%.This Account includes a Fixed Rate
option. Current Fixed Rate Part APRs range from 6.61% to 9.20%. This rate may vary, but once rate is established for a new Fixed Rate
Part, it will not vary thereafter. $100 balance transfer fee applies each time you establish a Fixed Rate Part. $5,000 minimum balance
transfer and an automatic payment from a PNC Bank Checking account required for these Fixed Rate Part APRs. An early account closure
fee of $350 applies to all credit lines in excess of $50,000 that close within 36 months of account opening. For properties in MD and VA,
you will be required to repay the mortgage recording tax if you close your line within the first 36 months after the date it is opened. No
closing cost only applies to single-family owner occupied properties with lines up to $250,000. Lines above $250,000, customer may be
required to pay title insurance. For properties in NY, customer is responsible to pay mortgage recording tax regardless of line size. In
markets other than Greater Washington, there is an annual fee of $30. The annual fee is waived for Performance and Performance Select
customers in all markets. Property insurance required. Subject to credit approval. Offers may be modified or discontinued at any time and
may vary by market.
Most financial experts agree that any good savings and investment
strategy includes keeping a portion of your savings in FDIC-insured
accounts like savings, money markets and CDs. Bank accounts
such as these are easy to access and offer predictable interest
rates. For your convenience, these accounts can be opened on
pnc.com, by phone or in a branch office.
Savings Account
Individual Retirement Accounts (IRAs)
Want an easy way to get started on saving? Or
to save for a new goal like a down payment on
a house or a vacation? Try our traditional Savings
Account. You can open your account with as little
as $25 and begin earning interest right away.
It’s never too early to start planning for your
retirement. PNC offers a variety of ways to start —
and stick to — a retirement savings plan.
Savings Accounts are a great way to teach
children about money. In fact, at PNC, Savings
Accounts for children under age 18 are always
free — with no minimum balance requirement.
Premium Money Market Account
For the money market that offers more, choose
our Premium Money Market Account. It rewards
higher balances with higher interest rates.
Certificates of Deposit
If you don’t need immediate access to your money,
you’ll want to take advantage of the higher interest
rates that CDs typically offer. PNC offers a variety
of rates and terms. And if you’re a Performance or
Performance Select Checking customer, you’ll
receive a bonus rate on select CDs.
Looking for low risk and fixed rates? Ask about
PNC Bank IRA CDs and IRA Money Market
accounts. They feature the security of FDIC
insurance, so your principal is protected to the
maximum permitted by law. You can choose
between either a Traditional IRA or Roth IRA.
Call 1-888-PNC-IRAS (762-4727) for more details.
Looking for more options? PNC Investments can
provide a wide range of non-FDIC-insured mutual
funds, stocks, bonds and annuities.1 For more
information, call 1-800-PNC-6111.
And if you’ve changed jobs, make sure you talk to us
about your 401(k) assets. With our Rollover IRAs, we
can help you roll over your pension or 401(k) funds
when you change employers — to avoid tax
consequences and to keep your money growing.
1
See pages 30 and 31 for information on non-FDIC-insured
products offered by PNC Investments, PNC Wealth Management
and PNC Insurance.
How Much Can I Contribute to an IRA Each Year?
For 2007, you can generally contribute up to $4,000 to your IRA. You have until
April 15 of the following year to make your contribution.
If you are 50 or older, you may be eligible to make an additional “catch-up”
contribution of up to $1,000. Ask us for details.
20 Volume 5, Issue 1
1.888.PNC.BANK pnc.com
PNC Directions 21
Savings Account Features
AC C O U N T T Y P E
MINIMUM
TO O P E N
Savings Account
$25
Premium Money
Market Account
Certificates of
Deposit
Individual
Retirement
Accounts (IRAs)
$100
varies
AC C O U N T F E AT U R E S
M O N T H LY
SERVICE CHARGE
• Balance earns interest at $25 and over.
• Unlimited deposits, including transfers into the
account.
• Three free withdrawals per month (including
transfers out of the account); then $3 for each
additional withdrawal.*
• Average balance to avoid withdrawal fees is $1,500.
If average monthly
balance falls below
$400.
• Balance earns interest at $1,000+ based on
tiered rates.
• Unlimited deposits (including transfers into
the account).
• Easy access with checks and through ATMs.*
• Free and unlimited use of Online Banking and
Telephone Banking.
If average monthly
balance falls below
$1,000.
• Interest rate for the term specified on fixed-rate CDs.
• Competitive interest rates.
• Variety of terms available.
• Automatic renewal.
• FDIC insured to the maximum permitted by law.
No monthly service
charge. Penalty for
early withdrawal on
most terms.
$25 for
money
market
• Low minimum opening balance.
• Deposits can be made at any time to money market.
• Tax advantages.
$250 for CD • Maximum annual contribution limits apply.
No monthly service
charge. Penalty for
early withdrawal if
under age 591⁄2 for
IRA CDs. Other fees
may apply in certain
situations.
*Federal regulations prohibit you from making more than a total of six transfers each month to other accounts from a savings or money
market account (including transfers to another account for overdraft protection) or to third parties each month by pre-authorized
or automatic agreements, telephone or electronic and online transfers; and no more than three of the six may be made by check
(if applicable), through point of sale purchase transactions with a banking card or through similar payments to a third party. See
your account agreement for more information. Other limits may apply to your account. PNC Bank charges may apply for use of
another financial institution’s ATMs. Additionally, other financial institutions may charge for using their ATMs.
Get into the Savings Habit
The way to make your savings grow is to
add to it regularly. We make it easy. With
Automatic Transfer, you can have a specific
amount automatically transferred from
your PNC checking account into your savings
account on one or more designated days
each month. There is no fee for this
service, and it only takes a few minutes
to set up.
22 Volume 5, Issue 1
Loans and
Credit
Whether you need a loan to buy or remodel a
home, to pay for college expenses, to finance
a car, to take that dream vacation or even to
refinance past loans, PNC has competitive rates
that can help you achieve your financial goals.
Home Equity Loans and Lines of Credit*
Low rates. A variety of terms. Potential tax
deductions. With features like these, no wonder
the most popular loan for homeowners is a home
equity loan. These loans let you take advantage
of the equity you’ve built up in your home. And
often, the interest may even be tax deductible
(consult your tax advisor, though, to be sure).
Home Equity Installment Loan — Looking for
a loan where your payment and interest rate
stay the same every month? Then a Home Equity
Installment Loan is the right choice for you.
A variety of repayment terms are available.
Choice Home Equity Line of Credit — With a line
of credit, you can write yourself a loan anytime you
need one. Here’s how. A line of credit gives you
approval to draw credit up to a specified amount.
You can use that credit anytime you need to — as
easily as writing a check (or if you prefer, by
transferring funds from your credit line to your
checking account with Online Banking). Best of all,
you pay interest only on the amount of credit you’ve
actually used. And you have the option of fixing the
interest rate on up to three portions of your credit
line, while continuing to use the available balance.
Personal Loans
You don’t have to own a home to get a loan from
PNC Bank. Our loan professionals can help you with
Information, Calculators
and Tools at pnc.com
Discover a part of PNC Bank
that’s open 24 hours a day
and accessible from your
home, your office or
anywhere there’s a PC. It’s
pnc.com.
1.888.PNC.BANK pnc.com
personal loans for a wide variety of needs — debt
consolidation, a new or used car, a recreational
vehicle, almost anything — always at competitive rates.
Education Loans
Let PNC be your guide through the sometimes
bewildering maze of borrowing options out there.
As one of the nation’s “Top 10” providers of
educational loans, PNC has the experience and
the knowledge to help you with virtually every
aspect of financial aid. Our education lending
group is able to secure some of the best rates and
repayment options in the business. We can guide
you step by step through the process of selecting
the right loan, completing the right forms and
finding the right rate. Call 1-800-762-1001 or
visit pnconcampus.com to learn more today.
PNC Bank Visa Platinum Select Rewards
Credit Card
The credit card designed especially with PNC
checking account customers in mind offers great
interest rates, no annual fee options, purchase
security, return protection and extended warranties,
as well as special pricing advantages for Overdraft
Protection on any PNC checking account.
*Loans subject to credit approval.
1
All first mortgage products are offered and provided by PNC
Mortgage, LLC. PNC Mortgage, LLC is licensed in New Jersey as a
Department of Banking Mortgage Banker and Secondary Mortgage
Loan Licensee. PNC Mortgage, LLC may not be available in your area.
Credit subject to approval. Information is accurate as of the date of
printing and is subject to change without notice. 2007 PNC Mortgage,
LLC. All Rights reserved.
Looking for the best home mortgage? Find solutions
for all types of homebuyers through PNC Mortgage,
LLC∑ at 1-800-778-6678 between 8:30 a.m. and 8:00 p.m.
Eastern time, Monday through Friday, or visit us at
pncmortgage.com. PNC Mortgage, LLC may not be
available in your area. Ask us for more details today.
PNC Directions 23
Finding Out How Much
You Can Borrow Is Easy
at PNC.com
Payment
Protection
Worried about what happens
to your debt if an emergency
or disaster strikes? Then ask
about Payment Protection
Plans that feature credit life
and credit disability insurance.
Credit Disability is designed to
make the payments on your
loans in the event you get sick
or hurt. Credit Life will pay
off the loan in the event of
your death.1 Talk with your
PNC Bank representative about
the coverage amounts and
terms available.
Whether you’re buying a home or looking to tap into your home
equity to do some remodeling or purchase a vacation property,
boat or RV, PNC has a number of tools and resources available
to you at pnc.com to help you crunch the numbers. Go to
pnc.com, click on the Personal section, and then select “Loans
& Lines of Credit” under the Products and Services section.
Look for Tools and Resources on the left-hand side of the page.
There you’ll find:
Borrowing Planner: Loan or Line — Answer a few brief
questions and determine what type of loan may be right for you.
Borrowing Power Calculator — Want to figure out how much
of a home mortgage payment you can comfortably afford? This
calculator will help you find out.
How large a line of credit can I obtain? — This comprehensive
multi-step calculator can help you determine how much home
equity you can tap into.
How much will my loan payments be? — Use this calculator to
quickly find out how much a mortgage or other loan will cost you
each month.
At PNC.com, you can also check current rates on home
mortgages and home equity as well as apply for a loan online.
Credit Life and Credit Disability coverage amounts are subject to
◊ minimum
limitations that may result in partial coverage of the payments
1
on the loan balance.
A Home Equity Line of Credit
That Lets You Lock in a Rate
Do you like the flexibility of a home
equity line of credit? But still want
to lock in an interest rate? Well
now you can have both. Ask about
our Choice Home Equity Line of
Credit. It gives you the opportunity
to lock in an interest rate when
you draw against your credit line.
And you can hold up to three
interest rate “lock-ins” at a time.
24 Volume 5, Issue 1
Business
Banking
Cash Flow
Effectively managing cash flow is one of the most
critical aspects of operating a business, and PNC
Bank offers a wide range of business tools to
enable you to meet virtually any cash flow need
or challenge.
Keeping Liquid*
Liquidity – Cash you have on hand or assets
that can be easily converted to cash now or in the
near future.
Premium Business Money Market – The amount
of money in your account determines your interest
rate based on current money market rates—and
rates can increase as your balance grows.
Treasury Enterprise Account1 – Not just a
checking account, this package allows you to
manage your cash efficiently, help reduce your
business’ costs, improve cash flow and simplify
your accounting. This package meets the needs of
larger companies with significant deposits, multiple
checking accounts and the flexibility to invest
excess cash deposits.
Business Lines of Credit2 – Instead of waiting
until your money is tight and you need financing,
request a line of credit when things are going well.
You’ll have easy access by check and flexibility when
it comes to rates repayment schedules and secured,
unsecured and overdraft protection options.
Business Sweep Checking* – If you normally have
more money in your business checking account
than you need to cover your daily operating
expenses, let that extra cash work for you with a
sweep account. A sweep account allows you to keep
enough money in your checking account to cover all
day-to-day expenses and automatically invests any
excess cash at the end of each day, while
1.877.BUS.BNKG pnc.com
maintaining the security
of FDIC insurance to the
maximum permitted by
law.
Business Certificates
of Deposit – Options
Fast Find Business
Cash Flow
Personal Finance
Financing
Value-Added Services
include multi-term CDs with automatic renewal,
variable-rate CDs and CDs that allow withdrawal of
funds after the first seven days with no penalty. To
give your business flexibility in managing its cash
flow, we offer terms from as short as seven days to
as long as 10 years.
25
27
27
29
Å
Making & Collecting Payments
Improve your cash position by simply streamlining
your systems for paying bills and collecting from
your customers.
Remote Deposit For Business – Now you can
deposit checks for your business without making a
trip to the bank! Remote deposit lets you make
(transmit) deposits at your convenience — 24/7 right
from your place of business.4 Free up more time in
your day — time better spent on running your
business. Ask your PNC Business Banker how
remote deposit can be a simple and convenient way
to make check deposits.
Merchant Services3 – PNC Merchant Services®
offers more than credit and debit card acceptance.
Our solutions encompass traditional non-cash
acceptance, gift cards, statement and reconciliation
tools, e-commerce options, Electronic Check
Acceptance® (ECA®) and more! Services are backed
up with one-on-one customer service 24 hours a
day, 365 days a year. Plus, receive free next-day
funding for payments deposited to your PNC Bank
Business checking account.3 Call 888-562-2300
today and ask for a complimentary analysis of your
current processing statement to validate whether
you are receiving the best rates for your business.
PNC Directions 25
Conducting Everyday Business*
We can help you choose the right checking account to handle your specific needs.
Business Enterprise Checking
Free Business Checking
1
1
Are you just getting your business started?
Or maybe you don’t have a lot of transactions.
> No minimum balance or monthly
maintenance fee
Your daily transactions are growing as fast as
your business.
> No monthly maintenance fee when you
maintain an average monthly collected balance
of $10,000
Business Basic Checking1
Analysis Business Checking1
If your business is active, with high transaction
volumes and substantial balances, your higher
balances can work for you to offset fees.
> A la carte pricing — you only pay for the
services you use
Okay, your banking needs are still pretty basic,
but you want more options than with our Free
Business Checking.
> No monthly maintenance fee when you
maintain an average monthly collected
balance of $2,500
What comes with a PNC Business
Checking Account
> Multiple accounts combined on one detailed
monthly statement
Free
Business
Checking
Business
Basic
Checking
Business
Enterprise
Checking
Analysis
Business
Checking
daily deposit account activity and transaction history
up to 90 days. See the status of your loan balances
and verify payments. View images of cleared checks
and deposit tickets up to 180 days. Transfer funds
between your accounts,7 including draws on select
lines of credit. Place stop-payment orders and
order copies of checks, deposits or statements.
PINACLE® Express – For growing businesses that
need to expand their cash management, PINACLE
Express provides an affordable and easy-to-use way
to conduct your company’s banking online. With a
single sign-on, you have one-stop, 24-hour access
to critical information and a variety of services that
help you monitor and control complex cash
management activities.
PINACLE® Web – When your business has grown
enough to need sophisticated Treasury
Management Services, PINACLE Web provides our
most sophisticated cash management tools. All the
features of PINACLE Express are included, plus a
selection of online cash management services from
PNC Treasury Management.
Combined transaction items free each month
200
300
500
Cash deposited free each month
Up to
$5,000
Up to
$10,000
Up to
$50,000
Free Online Banking2 and Online Bill Pay
Yes
Yes
Yes
Free Visa® Check Card with Reward Points14
Yes
Yes
Yes
Yes
Free next-day funding on Visa® and
MasterCard® payment transactions
with PNC Merchant Services3
Yes
Yes
Yes
Yes
Non-Profit Checking – PNC supports the efforts of
Yes
non-profit organizations with an account designed
exclusively for them—featuring no minimum balance requirement and no monthly maintenance fee.
Specialty Checking*
Yes
A selection of accounts for very specific industries
and situations.
Free global ATMs
Yes
Yes
25% discount on Clarke American® checks
Yes
Yes
Analysis Business Checking With Interest – A
Merchant Services discounts6
Yes
Free first order of Clarke American checks
Yes
qualifying business, non-profit, government agency
or sole proprietor can open the account. This account
has the features of Analysis Business Checking
plus earns interest on the entire account balance.
An Earnings Credit does not apply to this account.
Earnings credit rate used to offset fees
Free Personal Performance Checking Account15
Yes
Yes
Yes
(We reserve the right to limit the number of free
Performance accounts per business relationship)
Free overdraft protection set up1
Loan origination fee discount1
Free Online Bill Pay6 – Use your PC to pay
business bills and schedule future or recurring
payments. Spend less time writing checks,
reordering checks and buying stamps. Take
advantage of vendors who offer electronic delivery
of invoices. Save time by downloading invoices and
their payment history into popular business
accounting programs. Best of all, it’s free.
Treasury Management Services – PNC Bank
offers an extensive array of Treasury Management
Services to help you manage your company’s cash
26 Volume 5, Issue 1
Yes
Yes
Yes
flow and financial position, streamline business
operations, gain better control and accelerate your
collection processes.Talk to us about electronic tax
payment lockbox services, ACH, Wire Transfer, Zero
Balance Account, Money Room Services and more.
Online Information & Reporting
Free Online Banking5 – Online Banking gives you
free 24-hour access to your PNC Bank accounts, for
a complete picture of your business finances. View
your current day ledger and available balances,
IOLTA (Interest On Lawyers’ Trust Accounts) –
Specifically designed to manage funds for multiple
clients. Interest earned on an IOLTA,
less any permitted service fees, is
forwarded to the state IOLTA board.
No minimum balance or monthly
maintenance fee.
Client Escrow Management
Account – Managing and tracking
client escrow accounts made easy.
This account has one master account
that can be linked to any number of
individual client sub-accounts. Option
to earn interest on client accounts.
Account provides one detailed monthly
statement.
1.877.BUS.BNKG pnc.com
Personal Finance
Personal Banking* – It’s what you need to run your
life right now. And cover what’s going to happen
later.
• Checking • Savings • Online Banking
• Money Market Accounts and CDs
• Mortgages and Home Equity Loans8
• Education and Personal Loans • Credit Cards
Investments** – This is the dream part. Where you
see your kids dressed in graduation gowns. A second
home on a rocky coast. Teeing off on the first fairway
of your retirement.
• IRAs and Retirement Plans
• Education Savings Plans
• Brokerage Services • Mutual Funds • Annuities
• Tax-Advantaged Investments
Financing
At PNC, we’re always looking for ways to help our
clients meet the challenges of running their
businesses. When it comes to credit, that means
providing flexible interest rates, convenient repayment terms and credit availability. We help you choose
the right loan from a wide range of loan products, so
we can match interest rate, term and other features
for your particular situation and needs. Our lending
philosophy is what truly sets us apart—our goal is to
ultimately say “yes” as often as possible.8
Managing Cash Flow
A line of credit can help you manage the peaks and
valleys of your cash flow.
Choice CreditSM for Business Line of Credit – An
unsecured line of credit that puts from $5,000 up to
$100,000 at your fingertips.9 Applying is easy and
quick, with a simple application and a decision, in
most cases, in one business day or less. Plus, you
can access your funds online or by writing a check,
or with optional overdraft protection for your PNC
Bank Business Checking Account.
Business Equity Line of Credit – Provide some
capital for your business by using the equity in your
home or company building. Available in amounts
from $10,000 to $1,000,000. Offers variable interest
rate based on Prime Rate10 and a 10-year principal
repayment. Easy online access or by writing a check.
Secured Line of Credit – Use your company’s
assets to free up cash. Because the line of credit is
backed by the value of your business assets,
inventory and receivables, it offers lower interest
PNC Directions 27
rates than unsecured options. Available in amounts
from $100,000 to $2,000,000, and interest-only
payments deducted automatically from your PNC
Bank business checking account.
Growing Your Business
Solutions for financing business expansion, the
purchase of a business, equipment purchases or
other major business expenses.
Choice CreditSM for Business Installment Loan –
Choose a fixed or variable term loan with a
variable interest rate based on Prime Rate10 and a
repayment schedule that best fits your situation.
Payments are deducted automatically from your
PNC Bank Business Checking Account. Available in
amounts from $2,500 to $100,000.
Business Equity Term Loan – Use the equity in
your home or company building or both to get the
cash you need. Payments are deducted
automatically from your PNC Bank business
checking account. Available in amounts from
$10,000 to $1,000,000 and for a repayment period
of up to 20 years.11
Business Credit Solutions
Need
Short-term working capital,
equipment purchases and
general business needs
Working capital, equipment
purchases, expansion and
building improvements
Larger working capital
needs, seasonal inventory
purchases, equipment and
machinery purchases
Business Secured Term Loan – Use assets like
accounts receivables and inventory to secure
funding for equipment, machinery or other major
expenses. Competitive fixed interest rates and a
variety of repayment options are offered. Available
in amounts from $10,000 to $2,000,000 and a term
up to seven years.
Other Business Financing Needs – PNC also
offers business credit solutions for specific
borrowing needs —such as Commercial Mortgages
and Business Vehicle Financing. Leasing options
are available and offer your company the
opportunity to procure equipment at a fixed rate for
a fixed amount of time.***
SBA Loans and Other Government-Sponsored
Business Loan Programs – The U.S. Small
Business Administration (SBA) offers a number of
loan programs, some of which are targeted to
specific types of businesses, owners or
opportunities. PNC Bank can help you choose the
right program with the right features to meet your
borrowing needs. Ask your PNC Business Banker
about SBA loans and other government-sponsored
business loan programs today.
8
PNC
Solution
Loan
Amounts
Choice
CreditSM for
Business
$2,500 to
$100,000
Business
Equity Loan
$10,000 to
$1,000,000
Secured Loan Line of Credit
$100,000 to
$1,000,000
Term Loan
$10,000 to
$2,000,000
Manage routine expenses better.
PNC Platinum Business Rewards MasterCard® –
Keep business and personal expenses separate. Our
Platinum Business Rewards MasterCard® is a great
way to manage and control travel, entertainment and
other business expenses. Track expenses by
category or employee.
Purchasing Card – A streamlined process for
purchasing a variety of business goods and services.
Reduces costs and paperwork associated with purchase orders and checks. Provides flexible spending
limits, merchant controls and fraud prevention.
Employee Benefits – PNC provides access to
401(k)s,† Simple IRAs, group insurance12 ** and our
own WorkPlace Banking program—a program
providing personal banking services and educational
seminars to your employees at no cost to your
company. Talk to a PNC Business Banker about
401(k) plans today and discover a competitive edge in
attracting and retaining employees.
Benefits
Unsecured Line of Credit with check,
telephone and online access and a
variable interest rate based on the
Prime Rate.10 Or Term Loan with either
a fixed interest rate or variable interest
rate based on the Prime Rate.10
Simple application and decision,
in most cases, in one business
day or less. Optional overdraft
protection for your PNC
Business Checking Account.
Line of Credit secured by primary
residence and/or owner-occupied
commercial property, with check,
telephone and online access and a
variable interest rate. Or Term Loan
secured by primary residence and/or
owner-occupied commercial property
with a fixed interest rate.
Equity in real estate you own –
your home, your company’s
building or both, can be used
to secure a longer repayment
term and lower interest rate
compared to other loan options.
Line of Credit secured by business
assets with check and telephone
access and variable interest rate,
based on the Prime Rate.10 Or Term
Loan secured by business assets with
a fixed interest rate.
Leverage the value of your
receivables, inventory and
equipment to obtain larger loan
amounts. Optional overdraft
protection for your PNC Bank
Business Checking Account.
2
3
4
5
Commercial
Mortgage
$50,000 to
$2,000,000
Loan secured by commercial property.
Choice of fixed or variable interest
rate.
Streamlined process to buy
or refinance your company’s
building.
Purchase business vehicle
Business
Vehicle Loan
$10,000 to
$250,000
Loan secured by vehicle, with a fixed
interest rate.
100% financing of new cars
and trucks, 80% financing of
used vehicles.
Value Added
Services
Paychex® – PNC provides
access to Paychex®, a leading
provider of payroll processing
services.13 Paychex streamlines
the administration of employee
compensation programs and
provides all the documentation
necessary to keep your payroll
system in compliance with state
and federal requirements.
Visa® Extras – Turn everyday business purchases
into redeemable points for the rewards you want or
need—just by signing your name. You can also earn
points for online or electronic purchases.14 The
choice is yours every time you use your PNC Bank
Visa® Business Check Card for a qualifying
purchase when you enroll in Visa® Extras.14
Business Insurance – Protect your business. PNC
provides access from simple, low-cost insurance
packages for small businesses to more comprehensive, customized insurance solutions for
businesses with more complex needs.12 Talk to your
PNC Business Banker.
1
Features
Purchase or finance
commercial property
28 Volume 5, Issue 1
Conducting Everyday Business
6
7
8
9
See PNC Bank’s “Account Information - Business Checking
Accounts and Related Charges” document for further information.
Bank deposit products provided by PNC Bank, National Association
and PNC Bank, Delaware. Members FDIC.
All loans subject to credit approval and require automatic payment
deduction from a PNC Bank business checking account. Origination
and/or annual fees may apply.
Next day funding valid only when processing Visa and Mastercard
transactions is provided by PNC Merchant Services and funds are
deposited into a PNC Bank Business Checking account. Merchant
services is subject to credit approval and provided by PNC Merchant
Services Company. Please speak with your representative for further
details. PINACLE® is a registered trademark of The PNC Financial
Services Group, Inc.
Credits to the accounts are Monday - Friday after midnight. See the
applicable “Funds Availability Policy” to determine when the funds
will be made available. Remote deposit is subject to Bank approval.
There are fees for certain optional PNC Online Banking Services.
See our “Account Information – Business Checking Accounts and
Related Charges” brochure for further information. Offers, products
and pricing subject to change.
Payment processing services are subject to credit approval and provided by PNC Merchant Services Company. See PNC Bank’s
Business Checking Accounts and Related Charges for further information.
Federal regulations prohibit you from making more than a total of 6
transfers each month to other accounts from a savings or money
market account.
All loans and lines of credit subject to credit approval and if applicable, require automatic deduction from a PNC Bank Business
checking account. Origination and/or other fees may apply. All first
mortgage products are offered and provided by PNC Mortgage, LLC.
PNC Mortgage, LLC is licensed in New Jersey as a Department of
Banking Mortgage Banker. PNC Mortgage, LLC may not be available
in your area. Credit subject to approval.
$175 annual fee applies to Choice CreditSM for Business Line of Credit.
1.877.BUS.BNKG pnc.com
To learn more about how a
relationship with PNC Bank makes banking
easier, stop by any branch, call
1.877.BUS.BNKG or visit pnc.com
“Prime Rate” means the highest prime rate published in the “Money
Rates” section of The Wall Street Journal for the last day of the preceding calendar month.
11
20-year term available with residential equity only.
†
Securities and brokerage services are provided by PNC Investments
LLC. Member NASD and SIPC. A licensed affiliate of PNC Bank,
N. A. may receive compensation if you purchase.
12
Insurance products and advice are provided by PNC Insurance
Services, LLC Inc., a licensed insurance agency affiliate of PNC
Bank, N.A. or by licensed insurance agencies that are not affiliated
with PNC Bank, N.A. PNC Insurance Services Inc. will receive compensation if you choose to purchase coverage through this program.
A decision to purchase insurance will not affect the cost or availability of other products or services from PNC Bank, N.A. The
coverage can be purchased from any source of your choice.
13
Payroll services are provided by Paychex, Inc. PNC Bank receives
compensation from Paychex in connection with payroll services provided to PNC Banks’ customers.
14
A “qualifying purchase” is any signature-based purchase, phone or
mail order purchase, or automatic bill payment made with an
enrolled VISA card, which is processed or submitted through the
VISA USA Transaction Processing System.
15
See our Consumer Schedule of Service Charges and Fees for further information. Bank deposit products provided by PNC Bank,
National Association and PNC Bank, Delaware. Members FDIC..
10
≈ TT: 1-800-531-1648
* Bank
deposit products provided by PNC Bank, National Association
and PNC Bank, Delaware. Members FDIC. Loans subject to credit
approval.
Important Investor Information: Securities
**
and brokerage services are provided by PNC
Investments LLC, member NASD and SIPC.
Annuities and other insurance products are offered by PNC Insurance
Services, LLC, a licensed insurance agency.
***
Leasing services provided by PNC Equipment Finance, LLC.
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PNC Directions 29
Investments
goal is to buy a new home, pay for college, travel or
prepare for retirement, a Capital Directions asset
allocation strategy can be tailored to your time
frame and needs. Professional money management, combined with quarterly rebalancing and an
annual account review, make Capital Directions
an ideal account for someone on the go.
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Whether you are a first-time or a seasoned investor, a
PNC Investments Financial Consultant can help you translate
your financial goals into a solid investment plan.
With PNC Investments you’ll have access to a full
range of investment products — including nonFDIC-insured stocks, bonds and mutual funds.
Plus you’ll have the added convenience of doing
all your banking and investing at one location.
Creating a Sound Financial Plan — As your financial
goals change, you’ll need a broad selection of investment alternatives to keep pace. For example, if
you are in your 40s and thinking about retirement, you
want to make sure you’re maximizing your employer
retirement plan, funding an Individual Retirement
Account (IRA) and considering other investment
options. But as you get older, you may want to move
some of your investments into less aggressive
mutual funds, bonds and annuities. PNC Investments
offers a wide variety of investment products and
accounts to meet your changing needs, including:
• Mutual Funds
• 529 College Savings
• Stocks
Plans
• Bonds — Both
• Managed accounts
municipal & corporate • Options
• U.S. Treasury securities • Wealth transfer
• Individual Retirement
solutions
Accounts
• Long-term care
• Annuities
• And more
Investment Account Options
Whether you’re saving for a new home, planning for
retirement or preparing for a child’s education, our
Financial Consultants will work with you to help you
design a plan to achieve your goals. You can meet
with a PNC Investments Financial Consultant in
person, talk over the phone or access your account
online. We provide convenient trading, transfers
30 Volume 5, Issue 1
and settlements, and we have access to all major
U.S. stock exchanges.
In addition to a traditional cash or margin account,
PNC Investments offers several specialized types
of investment accounts. Our Financial Consultants
can help you determine which account option best
suits your needs.
Investor’s Preferred Account® — Are you looking for
a better way to manage your daily finances as well
as your investments for the future? This asset management account allows you to access your money
in several different ways (ATM, PNC Bank branch
office, checks, debit card), move your money between
accounts online and sweep your excess cash so it
can earn money market rates almost immediately.
Individual Retirement Accounts (IRAs) — If you
are interested in saving as much as you can for
retirement, an IRA is an option you should consider.
In 2007, you can set aside up to $4,000 per year
($5,000 if you’re 50 or older) into an IRA. The benefit
of an IRA is that the money grows tax deferred
until it is withdrawn. Talk to us about whether a
Traditional IRA or Roth IRA is right for you. And if
you’ve left your job or are planning to leave your job,
make sure to ask about a Rollover IRA — to help
you avoid paying unnecessary taxes on your hardearned retirement money.
Capital Directions® — Don’t keep all your eggs
in one basket — that’s the idea behind Capital
Directions. It uses an asset allocation strategy* to
help you systematically distribute your investment
dollars among three major asset classes — stocks,
bonds and money market securities. Whether your
529 Plans — 529 Plans offer you a way to save
money tax deferred for the education of your own
child, your grandchild or even yourself. In addition
to being able to have your money grow tax deferred,
funds can be withdrawn for qualified college
expenses free of federal taxes.** The money is
professionally managed, and there are no income
limitations or age restrictions. Unlike the Coverdell
ESA, a 529 Plan allows you to invest substantial
amounts of money. Several factors should be considered when selecting a 529 plan, including state tax
treatment, investment performance and expenses.
Coverdell Education Savings Accounts (ESAs) —
Coverdell Education Savings Accounts allow you to
contribute up to $2,000 per year for a child’s or grandchild’s college education. You can contribute until the
child turns 18, and the money grows tax free until
you use the money for higher education expenses.
Retirement Accounts for the Small Business
Owner and the Self-Employed — If you’re a sole
proprietor or are otherwise self-employed, you
can invest in a Simplified Employee Pension (SEP)
IRA, Simple IRA, Money Purchase and ProfitSharing plan and possibly a 401(k) plan.
Mutual Funds — Mutual funds are professionally
managed investments that allow investors to pool
their resources to purchase stocks, bonds and other
investments. With an investment of as little as $500,
you get the benefit of having your funds managed by
professional money managers. That makes mutual
funds ideal for people who don’t have the time,
expertise or desire to monitor individual securities,
and it is also an excellent choice for those just
beginning an investment plan.
Municipal Bonds — PNC Investments has access
to municipal bonds and other fixed-income products
in a wide range of maturities, quality ratings and
purposes, including bonds in both the primary
and secondary markets.
Fixed Annuities — Fixed annuities provide the
combination of a guaranteed stream of income and
stable principal value. Issued by insurance companies, annuities are long-term investments that allow
money to grow and compound tax deferred with
minimal investment risk. Annuities are exempt from
probate and will pass directly to the named beneficiary, avoiding the cost and delays of the legal process
involved in settling an estate. Annuities also allow you
to defer taxes on interest until it is actually withdrawn.
Variable Annuities — Variable annuities are
long-term, tax-advantaged investments issued by
insurance companies. They offer the potential of
higher returns through a range of investment options.
However, the rate of return will fluctuate depending
on the performance of the underlying investment
portfolios, and principal value is not guaranteed. As
with fixed annuities, your investment in a variable
annuity is tax deferred.
Wealth Transfer Solutions — In addition to helping
our customers accumulate wealth, PNC recognizes
the critical importance of helping our customers
efficiently pass their wealth to their heirs. Ask today
about the wealth transfer solutions we provide.
Long-Term Care — If you’re concerned about
safeguarding your hard-earned money against
unforeseen and potentially devastating medical
expenses, talk to us about long-term care
products. Long-term care can help provide
for nursing, home health and adult day care
support in the event of a medical emergency.
Online Account Access — Monitoring your
investments has never been easier. You can
access your accounts securely 24 hours a day,
view your balance and holdings, transfer money
between accounts, check on trade status, perform
research on your holdings, review your recent
transaction history, get stock quotes and more,
all through Online Banking at pnc.com.
*Asset allocation does not eliminate fluctuating prices, returns
or other risks associated with investing.
**The tax law exempting earnings on your investment and
qualified withdrawals from federal income tax expires on
Dec. 31, 2010. Unless revised, qualified withdrawals made
after 2010 will be subject to federal income taxes. Qualified
withdrawals may be subject to state and local taxes.
Important Investor Information: Securities and brokerage services are provided by
PNC Investments LLC. Member NASD and SIPC. Annuities and other insurance products
are offered by PNC Insurance Services, LLC, a licensed insurance agency.
PNC Investments is a subsidiary of PNC Bank, National Association.
1.800.PNC.6111 pnc.com
PNC Directions 31
Wealth
Management
Wealth Management Services
Building
Preserving
• Stock option planning
• Banking solutions
• Dynasty, Total Return, Asset Protection and
Tax-Advantaged trusts
• Risk management solutions
• Sophisticated portfolio hedging strategies
• Coordination of tax planning techniques with your
other advisors
• Insurance planning
• Family wealth consulting
Growing
Giving
• Investment management
• Retirement planning, including IRA and 401(k) rollovers
• Customized asset allocation strategies
• Full-service brokerage
• Discretionary portfolio management
• Mutual funds
• Municipal investment management
• Separately Managed Accounts
• Trust and estate planning solutions
• Business succession planning
• Charitable giving strategies
• Private Foundation Management Services
• Liquidity solutions
• Customized credit and lending, including mortgages*
• Special business practice financing
• Financial planning
• Education financial planning
The more wealth you accumulate, the more you need a comprehensive, customized
approach to managing it. That’s why so many people turn to PNC Wealth Management
for sophisticated solutions to complicated financial dilemmas. At PNC, we spend our
time getting to know you as a unique individual, with unique concerns about your
money. We listen carefully to what keeps you up at night. And we deliver.
PNC Wealth Management strives to understand
the needs of senior executives, retirees, business
owners, women investors, professional practices
and other successful individuals. We have the depth
of resources to address those needs with customized,
practical solutions. By guiding you through the
myriad of financial choices, we help chart a path
toward financial security for you. For your children.
For generations to come.
We listen to your needs and design creative solutions
for you. As our client, you receive close, personal
attention from a seasoned professional. Before
proposing a solution, we strive to understand your
total financial picture — including assets not
managed by PNC — to create a complete financial
profile. A dedicated team of wealth management
specialists selects solutions to help meet your
individual needs across a wide array of services. You
can choose to develop an integrated, comprehensive
wealth management plan or select individual
services to help implement an existing
plan. PNC Wealth Management works to
anticipate your needs and to proactively
propose new solutions to keep you
moving toward your goals, whatever
they might be: investing for retirement,
providing for future health care or
funding a college education.
We offer you a broad spectrum of planning,
investment, banking and credit services, plus the
in-depth knowledge to help find the right solution for
you. For over 150 years, PNC Wealth Management
has been helping people preserve, grow and pass
on their wealth. Today, we offer PNC Integrated
ApproachSM. It is a customized investment management process designed to help meet each client's
unique goals, time horizon and risk tolerance. This
personalized, easy-to-understand approach reduces
the complexities that are often associated with
managing financial success. At the same time,
it helps to enhance your opportunity to achieve
desirable results through all market cycles. Also,
through our website, pnc.com, you can access all of
your account information anytime, day or night.
*Home Equity loans and credit accounts are subject to credit approval.
◊ FDIC-insured bank deposit products are provided by PNC Bank, National Association and PNC Bank, Delaware, which are
Members FDIC. PNC Capital Markets is the marketing name used for the investment banking and capital markets activities conducted
by The PNC Financial Services Group, Inc. (“PNC”) through its subsidiaries PNC Bank, National Association and PNC Capital Markets,
Inc. PNC Capital Markets, Inc. is a registered broker-dealer and a member of the NASD and SIPC. Services such as the syndication of
loans, public finance underwriting and advisory services, securities underwriting and trading, private placements, asset securitizations
and merger and acquisition advisory services are provided by PNC Capital Markets, Inc. Foreign exchange and derivative products are
obligations of PNC Bank, National Association. PNC is a registered service mark of PNC. Investment and wealth management, fiduciary
services and FDIC-insured banking products and services are provided by the PNC subsidiaries, PNC Bank, National Association and
PNC Bank, Delaware. PNC does not provide legal, tax or accounting advice. Securities products and brokerage services are offered
through J.J.B. Hilliard, W. L. Lyons, Inc. and PNC Investments LLC, which are registered broker-dealers and members of the NASD
and SIPC. J.J.B. Hilliard, W.L. Lyons, Inc. is also a member of the NYSE. Insurance products and advice may be provided by PNC
Insurance Services, LLC and J.J.B. Hilliard, W.L. Lyons, Inc., licensed insurance agency affiliates of PNC or by licensed insurance
agencies that are not affiliated with PNC; in either case a licensed insurance affiliate will receive compensation if you choose to
purchase insurance through these programs. A decision to purchase insurance will not affect the cost or availability of other
products or services from PNC or its affiliates. Investments and Insurance: Not FDIC Insured. No Bank or Federal Government
Guarantee. May Lose Value.
The chart (opposite page) can help you assess
which products and services might be appropriate
for your wealth stage.
Our Client Promise
We commit to be your trusted advisor — the
first place you turn for advice and solutions. We
promise to understand your unique needs and
aspirations, to always act in your best interest
and to judge our success by your success.
For more information about any of our wealth management services, or for a complimentary
consultation, contact us at 1-888-762-6226 or visit us online at pnc.com.
32 Volume 5, Issue 1
1.888.762.6226 pnc.com
PNC Directions 33
Life is a journey. And we’ve been helping customers navigate that journey and
achieve their dreams for over 150 years. We know how to help people get to their
particular financial goals, and you sense this in our people. In their can-do optimism
and attitude of helpfulness. And it’s reflected in every one of our progressive products
and services that help enable our customers to get to where they want to go in life.
We think and act a bit differently. Like giving consumers the opportunity
to do away with the hassle of ATM fees, for example, and making free ATMs
available worldwide. Or the fact that we have more certified green buildings
than any other company in the world.1 Simply because it’s the right thing to do.
We draw inspiration from our customers. We listen closely to them.
And we’re especially gratified that J.D. Power and Associates ranked
PNC Bank “Highest in Customer Satisfaction with Small Business Banking.”2
We have solutions for big business clients as well. Our dedication to the
Corporate and Institutional space is yielding strong results. In fact, last year
we were named “Financing Principal of the Year” at the Middle Market
Financing Awards sponsored by The M&A Advisor.
For all your goals, plans and dreams, PNC will be there.
To uncomplicate. To navigate. And to accelerate your journey.
pnc.com/leadingtheway
According to the U.S. Green Building Council, November 2006. 2PNC Bank received the highest numerical score in the proprietary J.D. Power and Associates 2006
Small Business Banking Satisfaction Study.SM Study based on 4,996 total responses, measuring 13 financial institutions and measures opinions of small business
customers with annual revenues from $100,000 to $10 million. Proprietary study results are based on experiences and perceptions of customers surveyed in
July–September 2006. Your experiences may vary. Visit jdpower.com. Banking and lending products and services and bank deposit products are provided by
PNC Bank, National Association and PNC Bank, Delaware, which are Members FDIC. ©2007 The PNC Financial Services Group, Inc. All rights reserved.
FORM 124752-0307
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