A better future
Many financial advisors and experts predict the average American may need as much as 85% of their pre-retirement income during retirement. While you may be contributing to a 401(k) at work, there is more you could be doing to help make your retirement a reality. Let’s look at a few options you have through your hometown Sentry Bank, and contact our team with any questions!
One of the most effective ways to save is with an IRA, or individual retirement account. An IRA allows you to take advantage of potentially tax-deferred or tax-free growth.
If you are able, contribute the maximum amount to your IRA each year to prepare for retirement. An IRA should be adjusted regularly, usually annually but possibly more often as retirement nears and your goals change.
IRAs are individual accounts, so you won’t be able to create a joint IRA with a spouse, you would need to create two IRAs.
There are three types of IRAs:
With a Traditional IRA, you take pre-tax money from your earnings and place it into this account. Your earnings within the IRA can potentially grow tax-deferred until you withdraw them in retirement. Once you’re retired, you will probably be in a lower tax bracket than before retirement, so the money you pull out may be taxed at a lower rate.
With a Roth IRA, you take money you’ve already paid taxes on and place it into this account. Your earnings within the Roth IRA can potentially grow tax-free, with tax-free withdrawals in retirement if certain conditions are met.
This is an IRA which allows you to roll over investments from a qualified employer-sponsored retirement plan, such as a 401(k), 403(b) or 457(b) after retiring or changing jobs.
CERTIFICATES OF DEPOSIT
A CD, or certificate of deposit, is a savings certificate with a fixed maturity date, meaning you can only pull money out of the account once that date is reached or a penalty will be incurred. The positive side is that CDs generally have great interest rates to offset not having access to your money for some time.
At Sentry Bank, we have CD options ranging from 3 months to 5 years. CDs can generally be made out in any amount more than $500, and are insured by the FDIC up to $250,000 per individual.
At Sentry Bank, our personal savings accounts come with a low minimum balance, so you can save as much as you want, and use it when you need it without worrying about having to close the account.
Stop By Today
Stop by any of our convenient locations today and see how we can help you start saving for your future.