According to a recent survey conducted by the American Association of Retired Persons (AARP), a third of workers 45 or older have stopped contributing to their retirement plans because of concerns over the economy and inflation. But now is not the time to jeopardize your long-term financial security.
Retirement is coming, whether you are saving for it or not. Don’t get discouraged by short-term volatility in the stock market and don’t be distracted by what’s happening to the banking industry. Bronco is still a strong and sound financial co-operative and we are and will continue to be a safe haven for your investments.
For younger workers, consider this—the earlier you start saving and continue to save, the more money you’ll have when retirement arrives. There is no guarantee that we’ll always be able to rely on Social Security as a fall back, so the more you pad your nest now, the more secure your future will be.
For older workers, as the dollar devaluates, you’ll probably need to save more than you had initially planned if you want to retire at the same income level. The best option in a down economy is not to take away from your retirement plan, but to find ways to trim your every day expenses and save even more.
For those who are worried about not having enough money for emergencies as you’re continuing to invest in your retirement fund, it might be a good idea to have two savings plans—one for emergencies to absorb life’s unexpected events and one for your retirement.
Bronco has a number of savings products that can help you with both. For your “safety net,” we offer interest-earning Money Market and Share Accounts as well as Share Certificates. Depending on the level of liquidity you want to maintain, we can help you find the account that works best for your savings needs.
For retirement, we offer both traditional Individual Retirement Accounts (IRAs) and Roth IRAs. Traditional IRAs offer tax-deferred earnings and a possibility for tax-deductible contributions. Roth IRAs have more flexibility in that they can also be used for first-time home purchases and other financial goals. Unlike traditional IRAs, contributions to a Roth IRA are not tax deductible. However, the money in your Roth, including any earnings, can be withdrawn tax-free.
And speaking of tax deductions, we offer another exciting product, called a Coverdell Education Savings Account (ESA). This product allows you to save up to $2,000 per year per child for their college education. Unlike 529 plans, Coverdell ESAs can be used for qualified education expenses like books, room and board, etc., and earnings are tax free.
If you have any questions about how we can help you with savings or retirement accounts, feel free to drop by any Bronco office or give us a call at 757.569.6000. We’ll be happy to take the time to walk you through your options. You’ll also find a wealth of information about the products and services we offer online at www.broncofcu.com.
