It’s been said that to retire comfortably you should have at least $1 million saved. While that may seem like an unreachable number, it really isn’t that hard if you put your mind to it. For example, if you start putting away $400 a month in your 20s, or $650 a month in your 30s, …
Continue reading “It’s never too early, or too late, to start saving for retirement.”
It’s been said that to retire comfortably you should have at least $1 million saved. While that may seem like an unreachable number, it really isn’t that hard if you put your mind to it.
For example, if you start putting away $400 a month in your 20s, or $650 a month in your 30s, or $1,300 a month in your 40s, and get at least a 6% return on your investment, you could actually hit that milestone by 67.
That’s the power of compound interest. With compound interest, any interest you earn accrues interest on itself. So while it might not seem like you’re not putting a lot of money away, over time it can really start to add up.
Here are a few simple ways to start saving for retirement:
• Enroll in your employer’s 401(k) plan and make sure you take advantage of any company match
• Contribute to a Roth IRA or Traditional IRA. To learn more, click here.
• Talk with an investment professional.
• Can’t seem to find any extra money to save? Go out to eat less often and avoid impulse purchases. Most of all, put yourself on a budget.
If you have poor or no credit, don’t feel bad. Because you’re not alone. According to Experian, a credit reporting agency, 68 million people in the US are in the same boat.
The good news is that since you’re a Compass Community Credit Union member, you already have an easy way to start building or rebuilding your credit score. It’s your Compass Savings account.
Simply take out a loan against the balance you have in your savings account. Make payments on the loan on time. And your credit score will start to reflect that in a positive way. Plus, you can use the money from the loan to help pay down any high interest credit card debt or catch up on other bills that you may not be paying on time.
But while taking out a loan against your Compass Savings Account is a really easy way to start improving your credit, it’s not the only step you can take. Here are a few other tips we recommend you try:
• Pay all your bills on time — including your utility and cell phone bills
• Pay off debt and keep balances low on credit cards
• Don’t close unused credit cards unless they charge you annual fees
Remember, having a good credit score can help you qualify for better interest rates and terms when borrowing money, buying a car, or applying for a mortgage. It’s also used by landlords when you apply to rent. And it might even influence your smartphone lease and your life or car insurance rates.
If you’d like to learn more about taking out a loan against your Compass Savings Account, stop by your local branch. A Compass representative will be happy to tell you more.
In short, a credit union is a cooperative financial institution where people work together to make everyone’s lives better. Everyone who has an account here is a member. And every member is an owner.
Rather than making profits to send to far-off shareholders, Compass CCU reinvests in our credit union. Which means we reinvest in YOU. That’s why we say that, at Compass Community Credit Union, we guide you to better banking.