Wallkill Valley Federal Savings & Loan LOVES to talk about fiscal responsibility and does their best to help the community work toward setting and achieving financial goals. If saving money is your number one financial goal for 2016, it may be time to think about opening an Individual Retirement Account.
We’ve talked about IRAs or Individual Retirement Accounts before; if you are looking for some basic definitions, click here. Today, we are going to start by asking some questions to help you discover if an IRA is a good place for you to start your savings journey.
First Question: Do you have any cash set aside for emergencies?
In life, you can expect the unexpected. To help you face those unexpected emergencies with a bit less stress, having an emergency fund is key. If you have not yet set up an emergency fund for yourself, you may not be ready to tie up your savings in an IRA account that may or may not have withdrawal penalties. WVFSL has several savings account options to help you stash your cash for emergencies. To find out more about account types and rates, click here.
Next Question: Are you drowning in debt?
If you have a significant amount of debt (aside from your mortgage), you may want to consider paying off some of it before you begin making significant contributions to an IRA. Just imagine putting your monthly minimum credit card payments into savings every month! Plus you’ll save yourself a considerable amount of money in interest payments.
Final Question: Does your employer offer a 401K?
If you answered yes, then that is a great place to start saving. Like an IRA, a 401K program offers tax free savings opportunities. If your employer offers a company match, even better! Be sure to max out your contributions to take full advantage of any company match offered.
Once you have an emergency fund in place and your debt under control, an IRA is a great place to start saving! Even if you have a 401K it can still be a good idea to open an IRA as well.
Ready to begin? Give us a call. We would be happy to review our product options and help start you toward your Retirement Savings Journey!