Financial experts recommend saving 20% of your income, on average. The older you are, the more you should be saving for retirement. In addition to retirement savings, it’s recommended to have a minimum of six months of living expenses set aside in case of job loss or other unforeseen situations that would eliminate your income. Then, there are the other reasons to save: college, vacations, home renovations, the list goes on and on.
If you haven’t yet begun saving for retirement and other long-term goals, there is no better time to start than right now. Lowland Credit Union offers various long-term savings options to meet your needs and help you reach your goals.
IRAs– We offer both traditional and Roth IRA accounts to help with your retirement planning. Contributions made to traditional IRAs are tax deductible and are ideal if you are planning on rolling over money from other retirement accounts. Roth IRA contributions are not tax deductible, but earnings grow tax-free. You pay no taxes when you withdraw the money provided it has been in the account at least 5 years AND you’re older than 59 1/2. You can also withdraw the money tax free should you become disabled. Learn more about our IRA accounts here.
Share Certificates– A variety of share certificates are available for those that want to earn a higher rate of return than traditional savings accounts, but still want a guaranteed rate of return. Terms range from 3 months to 3 years, and the longer the term, the higher the rate. Get more for your money without any added risk. Check out the current rates here.