Retirement

Saving for retirement is important for everyone. Here are some key items to focus on as you plan for your retirement.*

If you have a career and have been in your job for more than a year, you probably have a 401K plan or other type of employer-matched retirement savings plan. You should keep up with your contributions and put away as much of your salary as you can afford.

With a 401K plan, the more you contribute, the more your employer will match, though your employer will usually only match up to a certain percentage of your earnings. What you contribute is taken out of your taxable income, so you really are on your way to saving a nice sum at retirement.

However, you can't save too much money for retirement, plain and simple. Pro Fed wants to give you easy and convenient ways to save. You can supplement your employer-matched savings with a Roth or Traditional IRA from Pro Fed.

Traditional IRAs have the benefit of an additional tax deduction for your contributions, over and above what you are already contributing through your 401K. Also like your 401K, your distributions when you retire will be taxable income.

Roth IRAs are set up in a unique way. You use your net income to save rather than taking a tax deduction for your contributions. Once you retire, your distributions will not count toward your taxable income.

In addition to Roth and Traditional IRAs, you may also want to invest in a Share Certificate. You'll save more than a Regular Shares savings or checking account, because certificates pay higher dividends. Pro Fed share certificates come in a vast array of term lengths, with a wide range dividend rates and yields. Plus, certificates over $10,000 will earn a premium dividend rate.

For more liquidity, ask us about a Money Market Plus share account. If you have a lot to save but don't want to keep it in a certificate, you can earn higher dividends than regular savings and there is no time requirement.

Of course, another convenience Pro Fed offers is the EZ Saver program. Make additional deposits to your IRA or Certificate at any time in-person, through payroll deduction, share-to-share transfer, Internet banking, or Touch-Tone Teller.**

For more advice, you can turn to the financial consultants at Pro-Fed Financial Advisors, Inc. Pro Fed members can take advantage of a no-cost, no-obligation portfolio review.

*This information is not intended as tax advice. Consult your tax advisor.

**Electronic contributions will always be reported as attributable to the tax year deposited.