Plan For Retirement

Retirement Accounts

Many financial advisors and experts predict the average American may need as much as 85% of their pre-retirement income during retirement.

While you may be contributing to a 401(k) at work, there is more you could be doing to help make your retirement a reality. Let’s look at a few options you have through your hometown Sentry Bank, and contact our team with any questions!

IRAs

One of the most effective ways to save is with an IRA, or individual retirement account. An IRA can give you access to a wider range of investment choices than your 401(k) or other employer-sponsored retirement plan, and allows you to take advantage of potentially tax-deferred or tax-free growth.

If you are able, contribute the maximum amount to your IRA each year to prepare for retirement. An IRA should be adjusted regularly, usually annually but possibly more often as retirement nears and your goals change.

IRAs are individual accounts, so you won’t be able to create a joint IRA with a spouse, you would need to create two IRAs.

There are three types of IRAs:

Traditional

With a Traditional IRA, you take pre-tax money from your earnings and place it into this account. Your earnings within the IRA can potentially grow tax-deferred until you withdraw them in retirement.

Once you’re retired, you will probably be in a lower tax bracket than before retirement, so the money you pull out may be taxed at a lower rate.

The maximum contribution per year is currently $5,500 ($6,500 if age 50 or above).

Roth

With a Roth IRA, you take money you’ve already paid taxes on and place it into this account. Your earnings within the Roth IRA can potentially grow tax-free, with tax-free withdrawals in retirement if certain conditions are met.

The maximum contribution per year is currently $5,500 ($6,500 if age 50 or above).

Rollover

This is an IRA which allows you to roll over investments from a qualified employer-sponsored retirement plan, such as a 401(k), 403(b) or 457(b) after retiring or changing jobs.

Certificates of Deposit

A CD, or certificate of deposit, is a savings certificate with a fixed maturity date, meaning you can only pull money out of the account once that date is reached or a penalty will be incurred. The positive side is that CDs generally have great interest rates to offset not having access to your money for some time.

At Sentry Bank, we issue CDs for any length of time between 3 months-5 years. CDs can generally be made out in any amount more than $1,000, and are insured by the FDIC up to $250,000 per individual.

Savings Accounts

At Sentry Bank, our personal savings accounts come with a low minimum balance, so you can save as much as you want, and use it when you need it without worrying about having to close the account.

Stop by today and see how we can help you start saving for your future.