Retirement Planning

It's how people save to buy a home, send the kids to college, and retire in comfort. During your working years, take a portion of your paycheck and send it via direct deposit into a separate, special account. If you don't see it, you might not miss it. As this money accumulates, move it to more long-term investments consistent with your risk profile and time horizon. With all these goals, retirement especially, time is your friend. Properly invested, money has the opportunity to grow. Do you know your retirement shortfalls? Use this calculator to help you determine if you have a retirement shortfall.

Shifting investment styles

When you're just starting to save and invest for your retirement, you may be like many people: comfortable accepting greater volatility and risk for the possibility of greater gain. As you approach retirement, you may have far less tolerance for ups and downs. Investors tend to shift to more conservative decisions, because losses just prior to retirement can be challenging -- and leave you little time to make it up with some unknown future gain. Prior to shifting your investment styles it's important to understand your current asset mix.

When should you retire?

This can be a complicated decision, and it's certainly a personal one. After a lifetime of work, are you financially and emotionally prepared for this new time of life? The fact is, you're in control of the big decision, and you can be confident you'll make the right one, especially if you've done your preparation and homework. Review your asset and liabilities to help you determine your net worth which could help you with your decision. Talk to a Financial Professional located at your credit union to ask your questions.

*Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.  Investing involves risks including possible loss of principal.

Making your money last.

One strategy to a comfortable and confident retirement is not outliving the money you've saved by creating a budget. Be careful with credit cards and new debt. Claim that senior citizen discount wherever it's offered. Read the fine print about taxes on all your investments. 

Be strategic about Social Security.

Social Security is available to you at age 62, but it's great if you can wait. Take it early, and you get 25% less than if you wait until full retirement age of 66 at which time you're entitled to 100%. If you can wait until 70, you get 35% more. People often coordinate Social Security benefits with spouses who are also eligible. Maybe one of you takes benefits early, and the other waits. Visit ssa.gov for more information about social security or use our social security calculator to help you estimate your social security benefit.

Tapping your retirement plans.

You may have a defined benefit pension plan from a former employer. Your 401(k) and perhaps IRAs will also likely play a central role. It's your choice when to withdraw funds from these accounts. If you want to begin tapping them or simply want to roll them over somewhere else, make sure you understand all your options and the ramifications of every decision as well as the minimum distribution amounts. Distributions from traditional IRAs and 401(k) plans are required as you reach age 72. A Financial Professional located at your credit union help you develop a plan that is unique to your own lifestyle.

*Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.

College costs continue to skyrocket, outpacing increases in income. Without careful planning, your children could find paying for higher education difficult. Start saving now by working with a Financial Professional.

How much will it cost?

The cost of a college education varies wildly. Annual tuition and fees can run high. Take either number (or one in between) and multiply it by four years, and it's only the beginning. You may need to pay for separate housing, a car, gas, parking or maybe air travel a few times a year. 

The earlier you start, the easier it is.

More parents are finding it difficult to fund their children's college education. As a result, many students are taking on more debt - and having to repay college loans right after graduation. The answer? Start saving early. You can use this calculator to set up a savings schedule to help you plan for college tuition. There are also special accounts specifically designed to help you save for college. Two popular accounts are the Coverdell Educational Savings Account (ESA) and the 529 College Savings Plan. They're both tax-advantaged ways to invest your money. Start by working with a Financial Professional located at your credit union today!

*Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. Prior to investing in a 529 Plan investors should consider whether the investor's or designated beneficiary's home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in such state's qualified tuition program. Withdrawals used for qualified expenses are federally tax free. Tax treatment at the state level may vary. Please consult with your tax advisor before investing.