n the joys of retirement when takes new 9 to 5 whole on a meaning.
n working 9 to 5...not! We re living longer. We re living stronger. And some of us are working longer. But what about those who decide that they re tired of the 9 to 5 routine? After retirement, there may be an opportunity for a second career, but what if you simply want to kick back and enjoy some free time? What do you need to do to be able to maintain the lifestyle you ve grown accustomed to? This brochure will give you some tips on how to keep your golden years from tarnishing. The key is saving. The earlier you start, the better off you ll be. Keys to a financially successful retirement 1. Plan for more expenses in retirement, not fewer. Consider the following: n Have you set a retirement goal? n When would you like to retire? n What kind of lifestyle do you want after you retire? n How long do you expect to live after you retire? n What monthly income will you need during retirement to maintain your current lifestyle? What will provide that income (Social Security, investment earnings, employer retirement package, etc.)?
the joys of retirement n n Medical expenses and long term care do you have medical conditions now that could require lengthy hospital stays later on? How will you cover long term care needs if they arise? How will you pay for prescriptions? n Will you still be paying college tuition? n Will you have a wedding to pay for? n Will your mortgage be paid off or not? n Have you contributed to your employer s 401K plan? n Have you requested a Personal Earnings and Benefit Estimate Statement (PEBES) from the Social Security Administration? n Have you sought out expert advice from a financial planner such as Members 1st Investment Services? n Check your credit report annually. Remember, you are entitled to one free copy a year. AnnualCreditReport.com provides consumers with a secure means to request and obtain a free credit report once every 12 months from each of the three nationwide consumer credit reporting companies in accordance with the Fair and Accurate Credit Transactions Act (FACT Act). Select the ordering method that best meets your needs: n Online at AnnualCreditReport.com n By phone 1-(877)-322-8228 (TDD 1-877-730-4104) n By mail download the request form from AnnualCreditReport.com, complete and mail it to: Annual Credit Report Request Service PO Box 105281 Atlanta, GA 30348-5281 2. Create a budget. n Determine your needs. n Prioritize your wants. n Build flexibility into your budget. n Keep your budget simple so you stick to it. n Keep accurate records of how much money is coming in and how much money you spend. Keep every receipt. n Don t underestimate or overestimate expenses. n Pay yourself first. Set up some kind of savings plan.
n working 9 to 5...not! n Economize your spending recycle, use coupons, shop at warehouse clubs, cut utility costs, take advantage of discounts you re eligible for like AAA, AARP, military, etc. 3. Set financial goals. Determine your short-term and long-term retirement goals. Follow the S.M.A.R.T. plan: n S = Specific goal: Name your goal and determine how you re going to obtain it. n M = Measurable: Set a deadline for when you would like to complete your goal. n A = Achievable: Make your goal possible to achieve. n R = Realistic: Set smaller goals to reach the overall goal. n T = Total Commitment: Internalize your goal and make it a desirable goal. 4. Using retirement accounts. There are various retirements to consider such as Individual Retirement Accounts (IRAs), 401(k), 403(b) and 457 plans. All retirement accounts offer tax benefits, however they are not all alike. Meet with a financial planner or your benefits manager to determine the best plan for you. 401(k), 403(b) and 457 plans are employer-sponsored retirement plans. Contributions are deducted from your paycheck pre-tax. Many employers provide matching funds based on how much you contribute to the plan. There are two types of IRAs to consider. One is a tax-deferred traditional IRA. The other is a tax-free Roth IRA.
the joys of retirement n Traditional IRA Tax deductible contributions (depending on income level) n Withdraws begin at age 59 1/2 and are mandatory by 70 1/2. n Taxes are paid on earnings when withdrawn from the IRA n Funds can be used to purchase a variety of investments (stocks, bonds, certificates of deposits, etc.) n Available to everyone; no income restrictions n All funds withdrawn (including principal contributions) before 59 1/2 are subject to a 10% penalty (subject to exception). Roth IRA Profile n Contributions are not tax deductible n No mandatory distribution age n All earnings and principal are 100% tax free if rules and regulations are followed n Funds can be used to purchase a variety of investments (stocks, bonds, certificates of deposits, etc.) n Available only to single-filers making up to $95,000 or married couples making a combined maximum of $150,000 annually. n Principal contributions can be withdrawn any time without penalty (subject to some minimal conditions). The biggest difference between the Traditional and Roth IRA is the way the U.S. Government treats the taxes. Meet with a financial planner or IRA specialist to determine which IRA product best suits your needs. 5. Investment planning. Financial security is important, especially during major life changes such as buying a home, paying for college, changing jobs, and retirement. You may want to meet with a financial planner to discuss your individual needs.
n working 9 to 5...not! Member Loyalty Rewards This unique rewards program is based on your account relationship with Members 1st. Member Loyalty Rewards (MLR) will take the benefits of membership to the next level. MLR helps you build your relationship with us so that you benefit in terms of even fewer fees, more free services, reduced consumer loan rates, and bonus certificate rates. All you need to do is simply use three of our products and you ll benefit. We offer four Reward levels Silver, Gold, Platinum and Titanium. Your reward level is posted on your account statement. To move up to the next level, consider increasing your account balances by transferring accounts you may have elsewhere or using more of what we offer. Levels are reevaluated and will change based on your qualifying products and balances at the end of each month. You may group your family members who live at your address so that all account owners at the same address can enjoy the same reward benefits. Each account owner must agree to be in the group. Forming a group does not affect account access or ownership. It just means everyone s balances are added together to make the rewards more beneficial to all. Family group authorization forms are available at any branch location, or call TeleBranch at (800) 237-7288 for more information. Additionally, Members 1st Investment Services balances are counted towards your total balance with us. Free Seminars Check the calendar section of www.members1st.org for topics, seminar dates, times and locations.
the joys of retirement n
For questions about Individual Retirement Accounts, call (800) 283-2328, ext. 6022 For general loan inquiries or to apply, call (800) 283-2328, ext. 6040 To discuss additional savings opportunities such as traditional certificates, money management accounts and club accounts, call (800) 237-7288 For information about various insurance products, call (800) 283-2328, ext. 5218 or 5245 5000 Louise Drive P.O. Box 40 Mechanicsburg, PA 17055 www.members1st.org MBRS:300-74 1/13 We do business in accordance with the Federal Fair Housing Law and Equal Credit Opportunity Act.