Savings & Compounding
Money Gets Better With Time
You’ve got a good job paying a steady salary, and now you want to make that money do more for you.
There are several options for investing money for your retirement, and it’s never too early to get started.
Are you eligible for your employer’s 401(k) plan? Consider contributing to start building your nest egg. The best, and easiest, way to invest is through an automatic deduction from your paycheck. That eliminates any temptation to spend your money on things you may not really need instead of dedicating funds to your future.
And all investments in a 401(k) are made before taxes, meaning you will have less tax liability every year.
Building On Successful Investments
The earlier you start, the better the results over the long haul. If you start a savings account with PrimeWay Federal Credit Union at age 25 instead of age 35, you have an additional 10 years when your money is growing and earning additional returns for you. The interest compounds, meaning your account earns money on the principal plus the interest.
You can see the results for yourself using our compounding calculator.
Another option is establishing an Individual Retirement Account through PrimeWay Federal Credit Union.
The two most common types of IRAs: Traditional and Roth. The difference is in how they’re taxed.
Contributions to a Traditional IRA occur before taxes, and you’re not taxed on the money until you withdraw it at age 59 ½.
With a Roth IRA, you’re taxed on your contributions now, but that means you can withdraw the money tax-free once you hit retirement age.
Let Us Help!
Which investment instrument is right for you? Contact us at PrimeWay Federal Credit Union so we can help explain the differences and how they fit you.
Start building for retirement as soon as possible, but remember, it’s never too late to start!