The idea of retirement seems pretty abstract while parenting young children. Many families don’t even know where to begin when it comes to setting aside money for their kids’ college education. But it’s important not to lose sight of the big picture when caught up in the day-to-day.
So when is the best time to retire? Spend a few minutes on the Internet and you’ll find dozens of opinions on that question.
But most experts agree on one thing: It’s never too early to start SAVING for retirement.
“When to Retire” Comes with a Lot of Questions
- At what age do you want to retire?
- Have you been saving money?
- How much do you owe?
- Where will your income come from?
- What do you plan to do during retirement?
It’s no surprise that the common thread in these questions has to do with money.
No matter what age you retire, you’ll no longer be bringing home your current paycheck and much of what you’ll be spending isn’t going to be replaced with new money.
The sooner you can start SAVING money for the future, the more secure you’re going to feel about retirement.
And you’ll NEED that money for the long haul since the trend has been toward longer life spans.
You Have Several Options for Saving
- Putting money in a bank or credit union now will give you funds for necessities and emergencies, helping you keep your hands off money pegged for retirement.
- If your employer offers a contribution plan such as a 401(k) or 403(b), make sure you participate. Many even come with some form of employer-matching funds. These plans can lower your annual income tax rate because your contributions are deducted before your wages are taxed.
- Individual Retirement Accounts – or IRAs – are another way to invest for the future.
- Although it’s becoming rare, some companies still offer pension plans that provide a fixed income at retirement.
- Social Security will provide most people with a fixed income, based on their past earnings.
So while the right time to retire might seem a little blurry right now, the NEED TO SAVE FOR RETIREMENT is crystal clear.
Iowa State Bank has a variety of products and services to help you safely grow your money and set you on a course to achieving financial peace of mind. If you’re considering your IRA options, the deadline for 2023 contributions is April 15, 2024.
Get started by calling 515-288-0111 and speaking with a banker today!
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