Saving for retirement can seem like a daunting task to most people. Just becoming educated on the subject and figuring out how much one needs to save can result in a discouraging revelation. This is why it is important for anyone with retirement goals to be knowledgeable on all the different ways they can grow their money, credit union employees included. Your members trust you with their money and in return, expect the tremendous service and expertise that have given credit unions a good name. Now, whether this is a refresher or all new information, we would like to talk about retirement savings; specifically short-term and long-term retirement. In very basic terms, the differences between the two can be thought of as just the various methods used to save.
For a short-term goal, experts suggest focusing on saving, rather than investing. Explain to your members that taking risks for money needed in the near future is probably not the best idea and think about something like a high-yield savings account. Here, their money is safe and can be taken out at any time for emergencies or unexpected expenses. A similar option would be a certificate of deposit if your member is okay with having a higher average interest rate, but not immediate access to their funds.
For long-term retirement goals, your members should do a considerable amount of planning to figure out the best approach for investing their hard-earned money. Things like lifestyle, income and budgeting tendencies should be taken into account to determine the appropriate amount of money to invest. As you know, most employers offer sponsored 401K plans that allow employees to get started on building their nest eggs. Suggest to your members that this is something to take full advantage of if they are beginning to think about retirement investing. For older members, there are a few other things to consider. Assuming they have saved for retirement and are ready to use those savings, they should be aware of other options that diversify their investment portfolio and keep their money stable.
One of the biggest things when it comes to saving for retirement is proper planning. There is always something to plan for whether it be calculating how much money you need to save, or figuring out the appropriate withdrawal amount when you saved enough. With that being said, there are plenty of resources for people to use to get the knowledge they need for their retirement investments but having a trusted source helping them along the way is much more valuable. Find ways to offer to counsel or make time for discussion, not only for members but for anyone interested in their retirement options. Some of your branches may already hold events like this, but for those that don’t, it can be a great way to get potential members to come into your credit union and also a way to build relationships with the members you already have.
Building relationships with your members is important since they are part of your community, and you are there to serve them. Oak Tree understands the importance of relationships like these. As a leading supplier of credit union forms for 35 years, our commitment to compliance and customer service has allowed us to connect with credit unions and take care of all their needs when it comes to forms. Feel free to send an email to ClientServices@oaktreebiz.com with any questions you may have regarding our products!