Individual Retirement Savings Account
What Kind of IRA is Right for Me?
For more information about opening an IRA at DMCU, call (313) 568-5000 or visit one of our branches.
Planning for Retirement
Most people look forward to the day they can retire. Even if you enjoy the work you do now, you want to be able to retire when you are still in good health and able to pursue the hobbies and interests you didn’t have much time for when you were out in the work world every day.
But your chances of being able to do this depend on your retirement-planning abilities. You don’t need to be a financial whiz, but you need to have the discipline to open the account and make regular contributions to it. The better you are at this, the more secure your future will be.
Below are some points to consider when planning for your retirement
Should I Put Off Retirement?
Waiting to retire can mean a bigger payoff. Currently, the retirement age to collect full Social Security benefits is 66, but this is scheduled to increase to 67. If you opt to take early retirement at 62, your Social Security benefit would be $1,030 per month, but if you waited until 67, it would be $1,577. By waiting until age 70, you would get $1,995. Visit the Social Security Administration’s website to learn more about benefits and retirement age.
Retirement and life expectancy are closely related. Although Americans’ life expectancy continues to get longer, a Bureau of Labor Statistics report shows that we retire earlier now than we did in the 1950s. That means we have to fund many more years of living without working.
To guard against running out of money in your retirement, many financial experts suggest:
- Withdraw only 4% or 5% annually from your retirement accounts.
- Look into buying a long-term care insurance policy, which covers nursing home and other related expenses.
- Continue to invest in stocks for their long-term growth potential.3
- Consult a financial advisor.
1. Society of Actuaries, “2009 Risks and Process of Retirement Survey Report,” February 2011.
2. Social Security Administration, Benefit Estimates Quick Calculator.
3. Investing in stocks involves risks, including loss of principal. Past performance is not a guarantee of future results.
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