Top 4 Ways to Prepare for Retirement

Regardless of your age, it is never too early to start saving for retirement. Being financially secure for retirement doesn’t just happen overnight, it takes a good plan and commitment to stick to that plan. Did you know that around half of Americans have not calculated how much they need to save for retirement? The average American spends around 20 years in retirement, that’s a lot to plan for. It may seem daunting to save enough money for 20 years, but with a few simple tips, you can do it.

  1. Start saving now

If you have not started saving yet, now is the time, and if you are currently saving, keep going! Start saving a small amount each month with the goal of increasing it a little bit each following month. Before you know it you will see your savings grow! The main thing is having a plan and sticking to it, and it is never too early or too late to start saving.

  1. Know your needs

Like we said before, the average American spends 20 years in retirement, and that can add up. The goal is to maintain your standard of living once you retire, which is usually between 70%-90% of your preretirement income. Plan ahead and know your retirement goals.

  1. Use your employer’s retirement plan

Most employers nowadays will offer a retirement plan or a 401k. If your employer does offer a retirement plan, contribute as much as you can to it. Overtime the compound interest will make a huge difference.

  1. Don’t touch your retirement savings

It can be tempting to tap into your retirement, but anytime you withdraw from your savings, you are losing out on all of the interest you would gain.

Retirement may seem far off, or too big of a hill to climb, but coming up with a plan now and sticking to it will help you out immensely when it comes time for retirement. If you would like to explore retirement options, or want to come up with a retirement plan and calculate how much you should be saving, contact us today to set up an appointment with one of our bankers who can walk you through the retirement process.

Securities offered through Securities America, Inc., Member FINRA/SIPC. Advisory services offered through Securities America Advisors, Inc., Kevin Deaver, Jack Becwar, and Jason Schluckebier, Representatives. Cornhusker Bank Wealth Management and Cornhusker Bank are not affiliated with the Securities America companies.
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How You Can Start Saving for College

It’s no secret, college is becoming increasingly expensive every year. If you are a new parent, the idea of saving for your young child’s college education can seem daunting, seeing as college costs are increasing on average by 3.5% a year. Luckily, there are some options for putting aside money for college.

You can plan ahead now by opening a traditional savings account. While this is good and will allow you to save for the future, there are better options available to you for saving for college. Your best bet is to open a 529 College Savings Plan. What makes a 529 College Savings Plan different than a traditional savings account?

  • Earnings from a 529 plan grow federal tax-free, and the money is not taxed when it is taken out to pay for college. Other means of saving may have their earnings taxed, and will have capital gains tax taken out when money is withdrawn.
  • You get to stay in control of the account. If you open the account for your child, you are still in control and decide how to money is used when it comes time to pay for college.
  • 529 College Savings Plans are very low maintenance accounts, and only require you to contribute, then you can set it and forget it.
  • Anyone can open a 529 College Savings Plan. There are no income limits, age limits, or annual contribution limits to a 529 plan.

To see if a 529 College Savings plan is right for you, or to speak with a member of our Wealth Management & Financial Services Team, please contact us today to set up an appointment! To schedule an initial consultation, call 402-434-2265 or 800-837-4481 and ask for the Wealth Management department. You can also request an appointment while visiting any one of Cornhusker Bank’s branch locations.

Investments in 529 plans involve risks to principal and may involve additional fees such as enrollment charges and annual maintenance fees. 529 plans offer no guarantees. Depending on your state of residence and the state of residence of the beneficiary, the plan may or may not be eligible for state tax benefits.  There are exceptions to the gift tax and estate tax exemptions; please contact a qualified tax, legal or financial advisor for more information prior to investing.