Tag: retirement

How to Save for Retirement

It’s never too early to start putting away money for your future. If you’ve ever wondered how to save for retirement when you’re also dealing with day-to-day expenses, these easy tips can help.

1. Get a rough estimate of retirement expenses

It may seem difficult to know how much money you’ll need in retirement, especially if it’s several decades away. Experts say that to keep your same standard of living, you’ll probably need at least 70% of your pre-retirement income.

The reason you probably won’t need 100 percent is because some costs, such as commuting expenses or child care, probably won’t be necessary in retirement. If you already have a budget for your current expenses, then it’s probably easy to get a rough idea of what you may need when you retire.

2. Decide on a savings target

Say you’re 25 years old and your living expenses are about $50,000 a year. Take 70% of that, and it means you’d probably need about $35,000 to retire comfortably, assuming your income remains the same until retirement. So you’d want a nest egg that provides about $35,000 annually.

Many financial experts suggest that you withdraw only about 4% of your retirement savings each year to help ensure that it lasts. That means to get $35,000 in income, you’d need a savings target of about $875,000.

It’s a lot of money, but by using a retirement calculator, you could find that there’s a good chance you could reach your goal by age 61 if you start saving 10% of your income each year. This number assumes your savings earn 7% annually. If your income increases before retirement, you’d probably also need to increase your savings target.

If you can’t quite put away 10% — or whatever your goal percentage is — while also keeping up with your regular expenses, consider starting with a smaller amount and gradually increasing the percentage of income you save until you reach your goal.

You may also have other income sources in retirement, such as Social Security or a pension plan. Look at the Social Security calculator to get an idea of what your monthly benefits might be when you retire and add that to your retirement calculations.

Bear in mind that an income of $35,000 will probably have much less spending power in 40 years than it does today because of inflation, so it’s smart to consider cost-of-living increases in your savings target. It may be a good idea to make an appointment with a certified financial planner to help you weigh your options.

3. Contribute to a tax-advantaged retirement plan

In addition to knowing what percentage of income you should save each year, you’ll also want to decide where to put your money. If your employer offers a traditional or Roth 401(k), consider enrolling. This is especially important if your company offers an employer match, because a match is like adding free money to your retirement savings. You could also contribute to a traditional or Roth IRA.

With traditional retirement plans, you receive an upfront tax deduction for the money you contribute. You then let that savings grow and allow the interest to compound. You’d pay income tax on any money you withdraw, and you’d also have additional early withdrawal penalties if you take money out before age 59½.

With Roth plans, you pay tax on your contributions, but you don’t have to pay tax on your withdrawals if you retire after age 59½.

When you put your money in a retirement savings plan, you’ll have a number of different investment options to consider, including stocks, bonds and mutual funds.

4. Put your savings on autopilot

Once you’ve established your retirement plan, consider setting up automatic withdrawals from your paycheck or bank account. It would be much easier to meet your savings goals when your money has a chance to grow uninterrupted over a period of years.

Learning how to save for retirement is important, but it doesn’t have to be hard. By coming up with a savings goal and contributing regularly to a retirement account, you can help make sure you’ll be able to meet your financial goals for the long term.

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INTERVIEW: Our Internal Auditor Randy Brackman Retires after 28 Years!

RandybrackmanThis week, Wauna Credit Union will experience a major change. It’s not a new branch, or the latest technology, on Friday, March 25th our Internal Auditor Randy Brackman will “punch out” for the very last time!

After 28 years (yes, TWENTY EIGHT years!) at Wauna Credit Union, Randy will hand the reigns over to new Internal Auditor Rachel Kamaunu, and head out into the sunset for a life of leisure spent with family, and traveling – including perhaps a trip to England!

The Wonderful World Of Wauna caught up with both Randy and Rachel to find out more about both of them, the passing of the torch, and what exactly an Internal Auditor does. Today, we are talking to Randy, and on Monday, we’ll post our interview with Rachel.

So, what exactly does an internal auditor do?

Randy: The Internal Auditor is unique in that he or she has two different direct supervisors to report to; Robert Blumberg, CEO/President of the Credit Union and the Supervisory Committee Chair, which oversees the members of the Supervisory Committee.  The role of the Internal Auditor is to be the “eyes and ears” of both supervisors to ensure the internal controls of the Credit Union are up-to-date and being followed by the staff.  This is accomplished by conducting a series of audit exams annually to test the internal controls in place.  Finally the Internal Auditor acts as the liaison for the Credit Union during the NCUA annual examination and the Outside Auditing Firms annual audit.

What was Wauna Credit Union like back in 1988? 

Randy: There were four branches in operation (Clatskanie, Astoria, Warrenton and Westport).  I was hired to develop a Collection Department and work on lowering a delinquency ratio of over 4 percent. Technology was more a blimp in the future.  The Collection Department (me) received the first desktop computer and printer.  The rest of the branches had large terminals at each station, connected to each other by cable.  If a terminal went down the rest of the line also stopped working.  Pulling reports were cumbersome and took hours to complete.  Month-end reports generally meant the IT Department would spend the entire weekend in the Clatskanie branch, and resting on cots, while waiting on the reports to be completed.

You’ve seen some big changes then?

Randy: If I had to list all that Wauna Credit Union done and accomplished over the past 28 years it would take several pages. The Credit Union has done a phenomenal job of working on the growth of the membership base.  In doing so, the asset size has blossomed to nearly $200 million in assets, and there appears to be no decline in sight. Technology became extremely valuable as a tool to keep the Credit Union on pace with or ahead of the other credit unions in our field of membership. 

How have you changed over the years??

Randy: I’m sure I have gone through changes over the past 28 years.  When I started, delegation was not in my vocabulary. I have learned to delegate projects more frequently and not lose sleep over each decision.  I find that I listen more before making a decision at work.  My work ethic has never changed.  I give a 110 percent to the Credit Union and have the utmost respect for the management supervisors I have reported to during the years.

How does it feel to hand the reins of this position over after so many years?

Randy: I am at peace with my decision to retire.  I have always been a firm believer if I did the work assigned to me to the best of my ability, with the good of the Credit Union fully in the forefront, then I am happy and I have gained the respect of management.  It was always my desire to go out on my terms and that is why I requested my retirement date to be the same month and day that I was hired. . . March 28.

What are you planning to do with your new found freedom? World travels? Gentleman of leisure? 

Randy: I’m sure there will be a “honey-do” list created for me before I know it. I will be retained by the Credit Union to do consulting work on an as needed basis.  Much of my time will be spent with the family.  Traveling will probably include trips to Southern Oregon; Washington DC, and possibly England.

Good Luck Randy! We are all going to miss you around here!