Getting ahead of your retirement planning
For most of our members, once the kids are out of the house, graduated from college, and (hopefully) functioning on their own, the next major financial milestone is retirement. It can be a daunting thought, putting enough money aside to sustain you for the rest of your life while maintaining a comfortable standard of living. There’s a lot to consider. When will you collect social security? Do you have a pension or retirement plan from your chosen career? Will you continue to work part-time or have some sort of hobby that can be monetized to supplement your income? All these questions will determine the final dollar amount you need to target to hit that goal, and the earlier you start saving, the faster your nest egg will grow.
While everyone knows that for over 90 years Navy Federal Credit Union members have enjoyed great rates on their savings accounts, savvy investors also realize that even a robust savings account is not a viable alternative to a dedicated retirement portfolio. You need an Individual Retirement Account (IRA).
So where to start? Navy Federal offers several outstanding options for investors, from those just starting their retirement planning, to experienced members just looking to diversify their future holdings.
No matter which of the options below you choose, you’ll enjoy easy management of your long-term savings, flexible contribution amounts, and market-competitive rates of return.
Traditional IRA Savings
These accounts are potentially tax-deferred retirement plans, where you may not pay taxes on contributions until you withdraw the funds. With these accounts you can contribute at any time and any age with earned income, defer taxes until you withdraw, and there’s no minimum contribution. These are best for members who have maxed out their employer-sponsored retirement plan, individuals just starting their retirement journey, or those who may not have access to workplace-sponsored IRA options.
Roth IRA Savings
Roth accounts have you pay the taxes on contributions immediately and then allow you to enjoy tax-free growth and tax-free qualified withdrawal when it’s time to retire. Like the traditional IRA, you can contribute at any time and any age with earned income, and there’s no minimum contribution. These plans are ideal for those who expect to be in a higher tax bracket when they start making withdrawals, as well as any individual just beginning to invest.
Simplified Employee Pension (SEP)
SEP IRAs are retirement savings plans that provide self-employed individuals and participating business owners an easy way to save for themselves and their employees. These accounts feature tax-deferred investments that grow until distributions are taxed as income. You can contribute anytime to your own or your employee’s SEP plan, with no minimum contributions and elevated investment limits.
No matter what your financial situation, it’s never too soon to start planning for your retirement, and Navy Federal makes it as easy as possible with their Digital Investor,
a low-cost online investing tool that makes it easy for members to stay on top of their financial activities and choose the level of direct control they’d like to exercise over their portfolio.
Experienced users can choose a self-directed account to take more control of their investments, take advantage of market reports, and research financials. Members can also learn about the basics of IRA investing and optimized strategies for assembling your ideal retirement nest egg.
If you’re a newer investor or just someone who prefers a more hands-off approach, there’s an automated account option, where you select a savings goal, preferred risk strategy, and any rebalancing options, before letting Navy Federal’s Digital Investor build a portfolio tailored specifically to your exact needs.
The time to start saving is now. Let Navy Federal Credit Union help you create peace of mind for a well-earned retirement, so you can enjoy what really matters.
This article is sponsored by Navy Federal Credit Union. Navy Federal Credit Union is federally insured by NCUA.
Navy Federal Financial Group, LLC (NFFG) is a licensed insurance agency. Non-deposit investments, brokerage, and advisory products are only sold through Navy Federal Investment Services, LLC (NFIS), a member of FINRA/SIPC and an SEC registered investment advisory firm. NFIS is a wholly owned subsidiary of NFFG. Insurance products are offered through NFFG and NFIS. These products are not NCUA/NCUSIF or otherwise federally insured, are not guaranteed or obligations of Navy Federal Credit Union (NFCU), are not offered, recommended, sanctioned, or encouraged by the federal government, and may involve investment risk, including possible loss of principal. Deposit products and related services are provided by NFCU. Digital Investor is offered through NFIS. Financial Advisors are employees of NFFG, and they are employees and registered representatives of NFIS. NFIS and NFFG are affiliated companies under the common control of NFCU. Call 1-877-221-8108 for further information.