If you're like most young adults, your financial priorities probably include covering the cost of your wedding, saving up to buy your first home, or supporting your family as you prepare to have children. With so many big expenses on the horizon, looking past these immediate expenses and on to your distant financial future may seem impossible and/or pointless. However, First Bank of the Lake is here to tell you that the sooner you can begin setting money aside for retirement, the better.
Saving For Retirement
Even if retirement is still decades away, it is never too soon to begin setting money aside. The primary reason for this is simple: the sooner you begin saving for retirement, the more money you will have in the long run. By opening a retirement account when you are still young (particularly in your early twenties), you'll have more years to let compounded interest work to your advantage.
Individual Retirement Accounts
Some companies offer employee-sponsored 401(k)s, SEP IRAs, or SIMPLE IRAs. If you are fortunate enough to work for an employer who will match your contributions to your retirement account, we strongly encourage you to take advantage of their program.
If your company does not offer retirement benefits, it is still important to begin preparing for the future. We recommend that you consider opening up an Individual Retirement Account (IRA). First Bank of the Lake offers a variety of IRAs at the Lake of the Ozarks. Keep reading to learn about the different types of IRAs and how to decide which type is right for you.
Traditional IRAs*
You may contribute up to $5,500 ($6,500 if you're age 50 or older) as long as you and/or your spouse (if filing jointly) have sufficient taxable income. You may get a tax deduction when you contribute, but your money will be eventually taxed as ordinary income when you take it out. If you take it out before it is allowed (age 59.5 ), you can also incur a penalty, in addition to the tax due. You can't contribute past age 70.5. At age 70.5 you have to start taking "required minimum distributions."
Roth IRAs*
You may contribute up to $5,500 ($6,500 if you're age 50 or older) as long as you and/or your spouse have sufficient taxable income, but there are income limits above which you can't contribute. You do not get a tax deduction when you contribute to a Roth IRA, but withdrawals can be taken out completely free from income taxes, as long as you don't withdraw from the earnings on the account before the age of 59.5. You can contribute at any age, and you are not required to take a minimum distribution from your own Roth IRA.
Contact First Bank Of The Lake To Open Your IRA!
As your community bank at the Lake of the Ozarks, we are here to help you prepare for both your immediate and your distant future. If you would like more information about opening an Individual Retirement Account, we hope you'll contact our bank in Osage Beach MO. We look forward to serving you!
*Other conditions may apply, please consult your tax advisor.
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First Bank of the Lake - Striving For Excellence
Member FDIC. Equal Housing Lender.
Located at the entrance to the Osage Beach Premium Outlets!
4558 Osage Beach Parkway
Suite 100
Osage Beach, MO 65065
4558 Osage Beach Parkway
Suite 100
Osage Beach, MO 65065
(573) 348-2265
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