With fewer mouths to feed, many empty nesters enjoy extra disposable income and maybe some extra time as well. Now it’s time to focus your energy on yourself and to make sure you are prepared for the future.
1. Examine your budget and focus on retirement.
Your 50s are a good time to take stock of the asset allocation of your portfolio and evaluate your position relative to your retirement plans. For an accurate estimate, consider at what age you would like to retire and the lifestyle you plan to have… will you travel, have a vacation home, take up a hobby? Project a budget, keeping in mind that some costs, such as health insurance, may increase and others, like your mortgage payment, may disappear. Once you have estimated your living expenses, then estimate how much your assets will be worth at retirement, and how long they are likely to last. Also estimate your Social Security income. Use our calculators to help determine what you need to achieve your savings goals and stay on budget.
2. Catch up on your IRA or other retirement plan.
If you have contributed little toward retirement, it is more important than ever to start. Check into possible benefits from your employer, such as a 401(k) investment plan. If your employer does not offer retirement benefits, it would be wise to speak with a financial planner to learn more about IRAs and other investment opportunities. After age 50, you are qualified to boost your plans with “catch-up” contributions for your savings. Consider these products from HomeTown Bank as well.
Individual Retirement Accounts (IRAs) – Let HomeTown Bank make your planning easier with a HomeTown Bank traditional IRA or Roth IRA.
HomeTown CDs – Maximize your return by locking in a competitive rate for a chosen term.
Certificate of Deposit Account Registry Service (CDARS) – Receive multi-million-dollar FDIC insurance coverage so you can manage all of your certificates of deposit directly with HomeTown Bank.
Insured Cash Sweep (ICS) – Receive multi-million-dollar FDIC protection on your savings deposits
IRAs are not a deposit, not FDIC insured, not insured by any federal government agency, carry no bank guarantee, and may go down in value.
3. Open a checking account for the way you live.
Conserve time, money and paper with HomeTown Bank’s convenient checking accounts with online banking and bill pay as well as free debit cards and no-charge ATM services.
Star Checking – This is a premier high-yield account with full checking privileges that earns a money-market return.
Advantage Interest Checking – A free account for customers 50 and better.
4. Rent a safe deposit box.
A safe deposit box* is a convenient place to store important items that would be difficult or impossible to replace. HomeTown Bank’s safe deposit boxes offer privacy and in most cases, greater security than keeping your valuables and important documents elsewhere. Additionally, some insurance companies charge lower insurance premiums on valuables kept in a bank's safe deposit box instead of at home.
*Safe deposit box contents are not FDIC insured.