AFCU Money Matters - Winter 2008 - (Page 4)

member tips • Earnings within IRAs are not subject to current taxation. • Contributions may be tax deductible (consult your tax advisor). • Additional contributions may be made by those age 50 and above. • Self-directed IRAs offer flexibility with investing. • Flexibility when you begin taking money out of IRAs, especially with Roth IRAs. Consider the following scenario. If you open a Roth IRA and contributed $4,000 a year (the maximum amount usually allowed) for 25 years, your savings could be worth more than $266,000 at retirement. You can watch your nest egg grow to its maximum potential by starting early and contributing the maximum amount each year. The financial experts at American First and/or your tax advisor can help you determine which retirement account might be best for you. Simply stop by a branch, visit www.amerfirst.org, or call 800/ 290-1112 AFC-887.qxp:Ad 11/1/07 5:08 PM Page 1 for more information. Plan for Early Retirement With an IRA Retirement trends are starting to shift as the baby boomer generation reaches retirement age. Due to economic factors, such as Social Security benefit eligibility, increasing health insurance costs and the decreasing number of employer-sponsored pension plans, more individuals reaching retirement age are opting to continue working longer. Last spring, a Census Bureau poll indicated 81 percent of employed men aged 62 to 64 were working full-time, compared with 77 percent in 1995 and 1990. Among women 62 to 64 years old, 42 percent were working, compared with 32 percent in 1995 and 28 percent in 1990. If this trend continues, establishing additional retirement accounts will be essential for those thinking about retiring at a young age. By planning for an early retirement, you can secure your financial future now, so you don’t have to stay on the job until your pension, Social Security or Medicare benefits kick in. American First Credit Union has a number of individual retirement accounts (IRAs) available, including Traditional and Roth IRAs, as well as Coverdell Education Savings accounts. These accounts are available as either a savings or share certificate account and offer extremely competitive rates and terms. While some financial institutions only insure their IRAs up to $100,000 or $250,000, AFCU is pleased to insure its members up to $500,000 through a combination of federal and private deposit insurance offered as a free, added benefit to members. The added insurance benefit provides members the security of knowing their life savings is safe, secure and insured up to $500,000 by their credit union. Other IRA benefits include: Our IRAs insured to $ Call for today’s rates 500,000! * *IRAs federally insured to $250,000 by the NCUA and privately insured from $250,001 to $500,00 by ASI. 800/ 290-1112 www.amerfirst.org ©Aubreyco.com AFC-887 4 WINTER 08 http://www.amerfirst.org http://www.amerfirst.org

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AFCU Money Matters - Winter 2008 Contents News You Can Use Member Tips What’s Next? Motley Fool: A Tale of Two Borrowers Jean Chatzky: Extreme Jobs The Good Life Home Matters Money Smarts

AFCU Money Matters - Winter 2008

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