With interest rates on the rise again, financial institutions all over the country are competing for your money, and that includes how you are saving for your retirement. An important account in the retirement process is an Individual Retirement Account (IRA). An IRA is a personal savings plan with tax advantages.
Both, Traditional and Roth IRAs are savings plans that can be opened as a variety of account types. Your financial institution may offer deposit accounts that can be opened under an IRA plan, such as IRA Certificates or IRA Money Market Accounts. Your financial institution may also offer Wealth Management and Retirement Planning services, which can include invested IRAs that may offer a promise of a higher return in exchange for riskier investments, as well as giving you advice on your deposit strategy. Northeast Credit Union can offer you both.
As you decide the best place to continue your journey on the road to retirement, here are a few reasons to consider opening an IRA at a credit union:
- The sooner you start the better off you’ll be. The biggest mistake you can make when saving for retirement is not starting earlier. If you have income, it is important to start finding small ways to save for the future. By starting now, you start taking advantage of compounding interest sooner, which is the interest earned, not just on the deposit itself, but also on the accumulating interest on that deposit. A credit union works with you to start small and begin building up that nest egg.
- Take advantage of federally insured deposits. By opening an Individual Retirement Account (IRA) at your local credit union, your retirement dollars are insured up to at least $250,000 by the National Credit Union Administration. If you are worried about the potential risks and losses of investing your retirement money into the stock market, these deposit accounts offer a safer alternative.
- Local advice you can trust. Speak with specialists and advisors that are members of your community, people who understand what you are going through. If you already know your plan and are ready to open a deposit account, a Member Experience Specialist is available in our branches to assist you. If you have tax-related questions, or are looking at investment options, our Northeast Wealth Advisors are also available by appointment to give you a bigger picture of retirement planning. Either way, make sure you consult a Certified Public Accountant or another accredited tax advisor before making any decisions related to funding your retirement account.
Ready to get started? You can open IRA Share Certificate Accounts or IRA Money Market Accounts as either a Traditional or Roth IRA by scheduling an appointment with a Member Experience Specialist or by calling 888-436-1847.