Retiring is a destination, and while there are many ways to get there, investing in a share savings, Money Market Account (MMA), or certificate-based Individual Retirement Account (IRA) is one of the most common because of its relative comfort and lack of, well… turbulence. Specifically, market turbulence. A share savings, MMA, or certificate-based IRA journey to retirement begins with a steady, predictable ascent, then a smooth flight without the uncertainty of market fluctuations. There are little perks along the way, like significant tax benefits and additional federal insurance. And, of course, a perfect landing in retirement. By saving for retirement with a Logix IRA, you can accumulate funds and be prepared for a financially secure future.
Let's explore some of the benefits of investing in an IRA.
Steady Ascent: Saving for retirement is like the steady ascent of an airplane. It's a gradual climb, but every little bit gets you closer to your destination. With a share savings account or certificate-based IRA, you can set up automatic contributions and watch your savings grow over time. Every little bit counts, and over the years, your savings will accumulate and grow, providing you with the financial security you need in retirement.
Smooth Flying: Investing in an IRA before taxes can make your life easier and reduce stress. Automated contributions are like autopilot for your retirement, and you never miss the money you don’t see coming out of your account. And, unlike stock-based IRAs or other market-based investments, there’s no stock market turbulence. IRAs at your credit union even optimize your federally insured funds, giving you the ability to reach $500,000 in total insured funds at one credit union.*
In-Flight Upgrades: While a comfortable retirement is the destination, it’s nice to have a few little creature comforts on the way. One little perk of an IRA investment before tax time is the potential for significant tax benefits due to a modified adjusted gross income. For example, with a Traditional IRA you can make tax-deductible contributions, which means you'll pay fewer taxes now and have more money to invest in your retirement. When it comes time to withdraw your savings in retirement, you'll be in a lower tax bracket, so you'll pay fewer taxes then too. Be sure to consult your tax advisor for your best personal outcome.
Perfect Landing: Now it’s time to put your gear down and cruise into a perfect landing in retirement. After all, your careful planning and responsible investment in an IRA got you here.
In fact, we might even be a little early!
*Deposits at credit unions are federally insured to at least $250,000 per individual vesting (and another $250,000 for IRAs) by the National Credit Union Administration (NCUA).
Please contact Logix at (800) 328-5328 or visit www.lfcu.com if you have any questions about this topic or would like to consider opening an account.
The content within this blog is provided for informational purposes only, and not intended to provide investment or tax advice. Please consult your financial, tax, or legal advisor regarding your unique situation.
Logix Smarter Banking is a registered trademark of Logix Federal Credit Union.