You may be saving for retirement, but could you be saving smarter?
Mel Barnes, SVP – Chief Operations Officer
You’ve probably heard the advice ever since you were about five-and-a-half years old: “You should save your money.” It’s great advice. You should absolutely have liquid cash on hand. But saving money for a rainy day (or a tropical beach vacay...just sayin’) is not the same as saving money for retirement.
In order to help ensure a long and comfortable retirement, IRAs and 401ks are pretty much essential. But as you reach retirement age, you might be nervous about being “in the market.” We get it. Market volatility can be scary, especially when your goal of retirement is not in the distant horizon, but is in the near future. You may be saving for retirement—but could you be saving smarter?
Some good advice for soon-to-be retirees is to transfer at least a portion of their retirement accounts to an IRA with us. We invest your IRA funds into a Certificate of Deposit (CD) with some of the best rates in town. (View rates here.) Doing this has some major benefits. When you invest in an IRA with us, you are placing your hard-earned money in a low-risk investment that is covered up to $250,000 by the FDIC. There is a bit of a trade-off, as these IRAs do tend to yield lower returns than higher-risk investments like stocks. However they are safer, and not prone to the dramatic ups and downs in the market that may keep you up at night. When you invest in one of our IRAs, you also get to take advantage of our great rates. We currently offer IRAs with rates as high as 3.18%!*
You may take funds from your IRA in accordance with IRS guidance, so there’s no penalty for making withdrawals once you are of the IRA retirement age of 59½. Your current 401k may have distinct rules regarding penalty-free withdrawals, minimum distributions and taxes. While transferring some of your retirement money to an IRA could be a great idea, it’s best to consult a professional first.
Want to know more about transferring your current IRA or 401k to one of our high-rate IRAs? Please schedule a free consultation with one of our financial service experts.
*APY = Annual Percentage Yield – Rates and promotional offers are subject to change or cancellation at any time. A penalty may be charged for early withdrawal that could reduce earnings. Yield as of 12/6/18. Minimum deposit $1,000. Other restrictions may apply.