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February 7, 2023
Saving for Retirement: You Need to Consider an IRA
You’ve probably heard about IRAs. Maybe you’ve considered adding an IRA to your retirement savings plan but aren’t sure where to start. Or maybe, you already have a 401(k) retirement savings plan through your employer and think that’s all you need. We encourage you to consider the benefits of adding an Individual Retirement Account (IRA) to your portfolio.*
What is an IRA?
An IRA is one of the best vehicles for saving money for retirement. What makes it so great? There are built-in tax benefits to incentivize you to prepare for retirement, and you can choose how the money in your account is invested, such as stocks, bonds, mutual funds, index funds or other assets. IRAs generally offer more investment choices compared to employer-sponsored plans, so you get additional flexibility with your investment strategy. A popular approach is to opt for a more aggressive growth strategy earlier on in your working career, then shift to more stable investments as you approach retirement.
When talking about IRAs, it’s important to know that there are two main IRA varieties — Roth IRAs and Traditional IRAs. The main difference comes down to when you pay taxes:
Roth IRAs are after-tax contributions, so you can’t deduct them on your taxes now. However, you won’t pay any taxes when you retire and take qualified distributions from your account, assuming tax law related to Roth IRAs remains consistent.
Traditional IRAs are tax-deductible now, then when you retire, distributions from the account are taxed as regular income.
IRAs also have annual contribution limits, as well as penalties for early withdrawals, and may have additional rules based on your income. Learn more about the rules and limits for the current tax year or consult a qualified tax professional.
Why do you need an IRA?
It’s important to plan for how you’ll cover your living expenses when you retire, especially if you want to maintain, or even improve, your lifestyle. If the historical performance of the market tells us anything, time is by far the biggest asset when it comes to saving for retirement. The earlier you get started, the better. Opening an IRA and contributing to it regularly throughout your working life can ensure you’re prepared for a long and happy retirement.
How do you open an IRA?
Opening an IRA is simple. You can open an IRA through a financial institution, like Grow, or through a brokerage. We’re here to help you choose which type of IRA is right for you. Learn more about opening an IRA with Grow.
*Certain restrictions apply. Not all taxpayers are eligible. Consult your tax advisor.
How to Find Your Routing & Account Numbers
When you make a payment online, by phone or on a mobile device, you may be asked for our routing number and your checking account number. Credit unions and banks use these numbers to identify accounts and make sure money gets where it’s supposed to be. You’ll also need to provide your routing and checking account numbers for:
- Direct deposits
- Electronic checks
- Military allotments
- Wire transfers
Where to Find Your Routing & Checking Account Numbers
Your personal checks include both our routing number and your account number, as shown on the Grow check example below.
Don’t have a Grow check? No worries.
Visit any Grow store and ask for a Direct Deposit Form. It lists both your routing number and checking account number.
Making a Loan Payment
When it comes to making payments, we try to make it as painless as possible to pay your loan every month. We have several different ways to pay, including convenient online options.
You have two ways to pay online by transferring funds from another bank or credit union.
- Grow Online Banking (Preferred payment method for any loan)
This is the simplest way to pay your loan. You can make one-time payments or set up automatic recurring payments in Grow Online Banking. Once you log in, select “Transfer/Payments” from the menu. If you’re not enrolled in Grow Online Banking yet, you can set up your account in just a few minutes.
- Debit Card or ACH (Available for auto, personal loans and HELOCs)
Note: ACH and debit card payments are not available for credit cards or most mortgages, except HELOCs.
We accept ACH payments with no additional fees or Mastercard® and Visa® debit cards with a convenience fee of $4.95. To get started with an online ACH or debit card payment, select Pay Now below.
Pay by Mail
You can also pay any Grow loan by check through the mail. Please remember to include your account number and Grow loan number on the check. (For credit card payments, please do not write your 16-digit credit card number on the check, which can cause a delay in processing the payment.)
Address for auto, credit card, personal loan and HELOC payments:
Grow Financial Federal Credit Union
P.O. Box 75466
Chicago, IL 60675-5466
Address for personal first or second mortgages and home equity payments:
Grow Financial Federal Credit Union
P.O. Box 11733
Newark, NJ 07101-4733
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