Being Retirement Ready

It's time to focus on saving money and making good decisions.

Ask any Pittsburgh-area adult about retirement planning, and they'll probably mention a pension or a 401(k). While that's a good start, you should also invest time gaining a deeper understanding of what's ahead. At Clearview, we can help explain your retirement savings options, the tax benefits of different types of IRAs, and everything else you need to know to get ready for your golden years.

Looking Down The Line

You know what they say: time flies. But pondering the passing years isn't very productive. Instead, you're better off thinking about how you're going to live comfortably as your journey through life continues. As you enter middle age, you need to keep one eye on the present and one on the future.

• No more procrastination. Yes, life is expensive and there are things you want to buy and do right now. But it's time to invest in the long haul. If you haven't done so already, open an Individual Retirement Account and keep feeding it each year. You can sink the money into a fairly traditional savings account or probably make a little more with Share Certificates, or diversify and do some of both. And while you're at it, ask your tax professional about the difference between Roth and Traditional IRAs. Both have tax advantages, but one might fit your financial outlook better than the other.
• There's one catch with IRAs: They have yearly contribution limits. It's $6,000 if you're under 50 and $7,000 if you're on the far side of the big 5-0. To live the retirement lifestyle you deserve, you'll want to do better than that. One option is to take the Share Certificate route again. In general, the longer you're willing to invest, the higher the returns. If you still have a few good years left in the workforce, a 60-month certificate might be a good bet. 
• Saving money is definitely a priority. But now, while you still have a job, is also a good time to pay down your debts. Hopefully, your college loans are in the rear-view mirror. But how about your house? If you still have a big chunk left on your mortgage, it might be a good time to refinance your home loan. Ideally, you can move to a lower interest rate and save on monthly payments. Another option is to go for a shorter loan that you can pay off before you stop working.
• OK, here's a tough topic: Life insurance. No one likes to mull over their mortality, but having a policy can put your mind at ease now and provide for your family's future well-being. It's good to learn the difference between whole life and term life coverage, and to find out more about policies that can provide you with benefits while you're still alive and kicking. The best way to do all this is to have a nice chat with our partners at TruStage^™ Insurance, who have been helping credit union members get affordable coverage for many decades.
• These are just a few ideas to get you headed in the right direction. From here on, you'll need to do your own leg work to learn all you can about retirement planning. One place to visit is Retirement CentralLink opens in a new window, a website that offers a wealth of information about getting financially ready for the best years of your life.