SeaComm Federal Credit Union OFFICIAL BLOG

Essential Tips for Retirement Saving

Financial security in retirement doesn’t just happen – it requires planning and commitment. Here are four essential tips to help you plan for the golden years!

Save as much as possible. It is important to save as much as you can, but not more than you can. Retirement should be your savings priority, ahead of college funds or other long-term savings, simply because you can’t get a loan to retire, but you can for virtually everything else.

The money you’re spending now on impractical purchases could instead be used during your retirement years. This doesn’t mean that all of your extra cash has to go into savings, but now is the time to find new and creative ways to cut your expenses. Some helpful ways to do this are to practice couponing, consolidate your debt with a personal loan, or purchase a cheaper, more fuel-efficient vehicle.

Calculate your retirement expenses. The key to a secure retirement is to plan ahead. It’s important that you come up with a rough estimate of your retirement expenses, which are fixed costs that most people are still accountable for during one’s retirement years. This may include property taxes, utility expenses, homeowners insurance, lease or car loan payments, mortgage payments and more. By estimating your total expenses, you can then deduct this estimation from your projected monthly retirement income. You should ensure that the remaining funds would be enough to cover other necessities, such as food, travel, and funds set aside for unexpected events.

Take advantage of your employer’s 401(k) plan. If your employer offers a traditional 401(k) plan, you are able to contribute pre-tax funds. Because the funds come out of your paycheck before federal income taxes are assessed, your money can grow tax-free. By contributing, you are lowering your tax burden up front, and you won’t have to pay taxes on the investment until you withdraw it. 

Invest in an Individual Retirement Account (IRA). An IRA with SeaComm is a great way to build your nest egg. There are no monthly fees, no minimum balance requirements, and dividends are paid to you on a monthly basis. Haven’t started saving, yet? It’s never too late to start. Click here to learn more, or call (800) 764-0566 to speak with a SeaComm representative – we are here to help you reach your financial goals!

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