First Bank of the Lake: 3 Retirement Planning Tips for 2020

All of us here at our bank at the Lake of the Ozarks hope you had a very Merry Christmas and that you have a Happy New Year! The New Year will be starting soon and can inspire some people to make some positive financial changes. Perhaps you want to put more of an effort into your retirement savings actions in the new year? If that's the case, this is the blog for you! This Osage Beach bank in here to give you a few retirement planning tips for 2020 in this week's blog. If you have any questions on retirement planning or IRAs at the Lake of the Ozarks, please call First Bank of the Lake at (573) 348-2265.

1. The earlier you start saving the BETTER.

If you haven't already started saving for retirement, you should do so as soon as possible.
Time can feel like it moves very quickly and the more time you give yourself to save for retirement, the more money you will likely have when you actually retire.

2. Ask your local bank about ALL retirement planning options.
Here at First Bank of the Lake, we offer Roth IRAs and Traditional IRAs.

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 59-1/2. You can contribute at any age, and you are not required to take a minimum distribution from your own Roth IRA.

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 is eventually taxed as ordinary income when you take it out. If you take it out before it is allowed (age 59-1/2), you can also incur a penalty, in addition to the tax due. You can't contribute past age 70-1/2. At age 70-1/2 you have to start taking "required minimum distributions."

Other conditions may apply, so please consult your tax advisor.

3. If offered retirement planning options through your work, TAKE THEM!

It is always nice if your employer offers a work 401K and it's even nicer if they offer to match whatever you put into it, up to a certain percentage.
We advise saying YES to this opportunity if it comes knocking.
This can be a very convenient way of saving for retirement if it applies to you.

First Bank of the Lake hopes you found these retirement tips for 2020 enlightening and helpful. Positive New Year's resolutions can be uplifting and if you are hoping to make a change to your financial situation and start putting away for retirement in 2020, we wish you the best of luck in your efforts. We offer different types of IRAs here and we would be happy to help you choose the best one for your needs. Give us a call today at (573) 348-2265.

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First Bank of the Lake - Striving For Excellence

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