MUST KNOW Tips to Saving For Retirement

The earlier you start saving for retirement, the better. Your local bank at the Lake of the Ozarks cares about your retirement planning and we offer a few products that will help you do just that. In this blog, we will give a few tips that will help guide your savings for retirement.

First Bank of the Lake offers the following IRAs that will help you save for your retirement.

IRAs

IRA stands for "Individual Retirement Account." It is a tax advantaged way for you to save money for you retirement. There are 4 basic types of IRAs and each are very different from one another. IRAs offer tax-deferred compounding once your money has been invested, but there are 4 types that differ in how they work and how much money you can contribute  into them annually. 

• Traditional IRAs

You may contribute up to $5500 ($6500 if you're age 50 or older) as long as you/ and your spouse have sufficient taxable income. A tax deduction may be granted when you contribute, but your money is eventually taxed as ordinary income with you withdraw it.

• Roth IRAs

You may also contribute up to $5500 with Roth IRAs ($6500 if you're age 50 or older) as long as you and/or your spouse have sufficient taxable income. You don't get a tax deduction when you contribute to this but with withdrawals can be taken out FREE from income taxes.

• SEP IRAs

The SEP IRA is treated like a Traditional IRA, except it's funded by the employer on the employee's behalf. The employer can invest up to 25% of the employee's compensation, up to a limit of $52,000.

• SIMPLE IRAs

This IRA is funded by both the employee and the employer. It's only available to smaller companies. Employees can contribute up to $12,000 ($14,500 if you're age 50 or older.) The employers can either choose to match your your contribution up to 3% or provide a nonelective contribution of 2% on up to $260,000 of the employee's pay. This is also treated like a Traditional IRA.

Take advantage of an employer retirement plan if you have the opportunity.

If you are fortunate enough to work for a company that offers a retirement plan, contribute to it! Some companies will match  your contribution, so be sure to contribute up to the amount that your company will throw in.

Automate your savings for retirement.

If you can, set your account to automatically deduct a portion every month for your savings. Find a percentage that works for you and regularly contribute. You may even get so used to this, that you won't even notice much of a difference.

Determine your goal.

Figure out what you will need when you retire. There are several personal retirement calculators you use online to help determine this. A goal will make your investment process seem easier, once you have a plan in motion. Our experienced banking staff can assist you with any questions you may have regarding saving for retirement.

Our friendly banking staff at the Lake of the Ozarks can assist you with your retirement needs. It's never too early to start saving for retirement and why not do it with a bank you can trust. Call 573-348-2265 for more information on IRAs today.

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First Bank of the Lake - Striving For Excellence

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Located at the entrance to the Osage Beach Premium Outlets!

4558 Osage Beach Parkway
Suite 100
Osage Beach, MO 65065

(573) 348-2265