5 Tips to Plan for Retirement Security

St. Anne’s Credit Union Retirement Planning Tool List

• Calculators
• Savings
• Checking

1. Start planning and saving for retirement early

Saving and planning for retirement early is crucial to ensure a comfortable and financially stable retirement. The sooner you invest in retirement-focused accounts, the more you will be able to benefit from compound interest.

Compound interest is a powerful tool for growing your retirement savings over time. It is the interest earned not only on the initial principal amount, but also on the accumulated interest that has been added to the account over time. This means that as your savings grow, so does the interest earned on them. For example, if you invest $10,000 in a retirement account with an annual interest rate of 5 percent, you would earn $500 in interest in the first year. However, in the second year, you would earn interest not just on the original $10,000, but also on the $500 in interest earned in the first year, bringing your total savings to $10,500. This compounding effect continues over time, with the interest earned on your savings growing exponentially.

It's important to start planning for retirement early, as the longer you have to save, the more time your money has to grow. By taking advantage of options such as Senior Checking, Money Market accounts and Savings Certificates, you can maximize your savings potential and ensure a comfortable retirement.

2. Set realistic retirement goals

Setting realistic retirement goals is essential to ensure that you have enough money to support yourself during your retirement years. We recommend setting S.M.A.R.T. goals for your retirement. S.M.A.R.T. stands for Specific, Measurable, Achievable, Relevant and Time-bound. By setting S.M.A.R.T. goals, you can define your objectives clearly, measure your progress and ensure that you are on track to achieving your goals.

Setting S.M.A.R.T. retirement goals will help you ensure that you have enough money to support yourself during your retirement years. Working with a local bank or credit union can help you develop a comprehensive retirement plan that takes into account your unique financial situation and helps you achieve your retirement goals. They can also provide you with services such as free ATM access to help you manage your finances efficiently.

3. Create a retirement plan

Creating a retirement plan is a critical step to ensure a comfortable and financially secure future. When developing your retirement plan, it's important to include a budget, retirement income sources, investment strategy and a contingency plan for unexpected expenses.

You may want to consider working with a local banking institution such as a credit union to help you develop a comprehensive retirement plan that fits your unique needs. St. Anne’s Credit Union offers a free Retirement Planner Calculator that can help you estimate your retirement income and expenses to ensure you set realistic retirement goals.

4. Diversify your retirement portfolio

Don’t put all your eggs in one basket! Diversifying your retirement portfolio is a vital component of a successful retirement plan. By diversifying, you are spreading your investments across different asset classes, such as stocks, bonds and real estate, in order to reduce your risk and maximize your returns.

Working with a financial advisor or planner can help you diversify your portfolio and select the right mix of investments to meet your financial goals. Your local bank or credit union will also likely offer savings certificates that offer compounded dividend rates to multiply your money just for letting it sit there.

5. Monitor and adjust your retirement plan

Monitoring and adjusting your retirement plan is imperative to ensuring that you stay on track to meet your financial goals. As your financial situation changes, you will need to update your retirement plan to make sure it continues to align with your goals.

First, review your investments and asset allocation. If a particular asset class is underperforming, you may need to reallocate your investments to other asset classes. Additionally, you’ll need to regularly review your expenses and income. If you find that your expected expenses are higher than your expected income, you may need to increase your savings or adjust your spending expectations. Lastly, be sure to consider unexpected expenses that may arise during retirement, such as healthcare costs or home repairs.

St. Anne's Credit Union is a financial institution that provides a range of services to help individuals plan and save for retirement. We offer a variety of retirement savings options, financial literacy resources and loan and deposit options that can help you cover expenses related to retirement. You can even easily manage your accounts beyond branch hours with our free ATMs and live video teller service for customized assistance! By providing these options, we can help you access funds to cover unexpected expenses or supplement your retirement income.

Don't wait to start planning for your retirement. Start your plan now with our Retirement Planner Calculator and start building your retirement funds with our savings options today!

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