Did you know that the basic cost of the average American family's lifestyle is about $4,000 a month? That's the price for basic necessities including a mortgage, food, insurance, electricity, taxes, and such.
Most people have not calculated what retirement will cost and think more about what they will do when they retire than how they will save the money needed to make those plans a reality. Whether retirement is years away or quickly approaching, the effort you put in now to financially prepare for the future can make all the difference. Saving is essential. Evaluate your projected financial requirements for retirement and create a sound investment strategy that will move you toward those goals.
So where do you stand?
A variety of financial calculators are available to help you estimate retirement costs and evaluate your current savings strategy.
Based on your calculations of your needs and what you have already saved - assuming a conservative growth rate - will your savings be large enough to cover the income gap you will face? There is no guarantee that your job or your partner's job will continue until you hit retirement age, or that Social Security will provide what you expect. Ensure you are taking the necessary steps now to make the most of your retirement planning years.
Certificates of Deposit, commonly referred to as CDs, are deposit accounts that generally offer a higher rate of interest than regular savings accounts, yet offer the same security. The flexibility of term lengths is a major benefit of CDs, offering investors time-frame options that suit their goals and lifestyle.
There are several types of Individual Retirement Accounts (IRAs), but the two most popular are the Traditional IRA and the Roth IRA. IRAs are longer-term savings options, but they do offer tax-advantaged benefits (consult your tax advisor).
Retirement planning can be an overwhelming task to accomplish alone. Fortunately, there are trusted Credit Union resources that can answer questions and offer support. Learn more about Retirement Planning and the services available through LPL Financial.