NFCU IRA

[Jnbmom]

Just got the email ( as I am sure everyone did), just curious if this is a good deal? I am not very knowledgeable about IRAs and wondering if this would be something I should look into. 

SPECIAL 40-MONTH IRA CERTIFICATE

Open a new Special 40-Month IRA certificate, and you'll earn 3.75% APY on your money.1 That’s more than you’d make in a savings account. And, you'll be protecting your retirement savings from the ups and downs of the stock market.

• Start with just $50
• Earn guaranteed returns
• Make additional deposits for 40 months (up to $150,000)

I have my 403B with work, but that is basically all I have. 

[Anonymous]

How much money do you currently place in your 403B each year?  In 2019 you can contribute up to 19k. 

Participants age 50 and older at any time during the calendar year are permitted to contribute an additional $6,000 in 2019.

So that's 25k just for your 403B (depending on your age).

Then if you open an IRA you can contribute an additional $5500 ($6500 if you are over 50 years old).

My feeling is that anything that will encourage you to save more money toward retirement is a good thing.  If the combination of return and safety in that offer will do that, then go for it.

[Jnbmom]

Thank you

I currently do not put much into my 403B ( I put 2% and my company matches) I know that's low but trying to keep my debts down and plan to increase it this coming January

I am really thinking about this for DH. He works in the restaurant world and works at a place for awhile gets burned out and moves to the next one ( cooks grrrrr) anyhow as you can imagine he himself has no retirement other the SS coming and that's not even enough to live these days. I am thinking of at least doing this as a supplement for him and then contributing a little more to mine as well.

I guess with our recent loss it just makes you think , we are in our early fifties so I really need to start getting these things on track. I have decent life insurance but it's through my employer for both of us, so if either of us croak while I am still working great, if not crap. So life insurance is my next order of business as well.

Just got alot to to take on this coming year and want to plan as best and as affordable as I can.

[bizarrocreditworld]

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@Jnbmom wrote:

Thank you

I currently do not put much into my 403B ( I put 2% and my company matches) I know that's low but trying to keep my debts down and plan to increase it this coming January

I am really thinking about this for DH. He works in the restaurant world and works at a place for awhile gets burned out and moves to the next one ( cooks grrrrr) anyhow as you can imagine he himself has no retirement other the SS coming and that's not even enough to live these days. I am thinking of at least doing this as a supplement for him and then contributing a little more to mine as well.

I guess with our recent loss it just makes you think , we are in our early fifties so I really need to start getting these things on track. I have decent life insurance but it's through my employer for both of us, so if either of us croak while I am still working great, if not crap. So life insurance is my next order of business as well.

Just got alot to to take on this coming year and want to plan as best and as affordable as I can.

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I already have a traditional IRA with Navy but I am thinking of using this as a way to add a few dollars to the overall account when it matures. Of course, I would be only putting the maximum $6,500 between the two, but still, it's doesn't seem like a bad way to add some money down the line.

I need to check out if this can be used with a SEP IRA (my wife is self-employed) since she can put in $53,000 a year.

[Anonymous]

IMO, the CD style IRAs/401Ks are for when you are close to or are retired and don't wish to lose what you have earned over the years.  If you are younger you likely don't want to lock in such low returns on what little you have inevested for so many years.

[coldfusion]

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@Anonymous wrote:

IMO, the CD style IRAs/401Ks are for when you are close to or are retired and don't wish to lose what you have earned over the years.  If you are younger you likely don't want to lock in such low returns on what little you have inevested for so many years.

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You're correct, but there is also the guidance about investing in what you know.  The corrolary to that is to be careful of investing in something that you don't understand.

3.75% right now is a very competitive rate especially with such low minimum requirements to open and to earn the $100 bonus,  but you must be aware that the money you invest won't be easily recoverable or transferrable without incurring a penalty for the next 40 months. 

[Anonymous]

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@coldfusion wrote:

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@Anonymous wrote:

IMO, the CD style IRAs/401Ks are for when you are close to or are retired and don't wish to lose what you have earned over the years.  If you are younger you likely don't want to lock in such low returns on what little you have inevested for so many years.

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You're correct, but there is also the guidance about investing in what you know.  The corrolary to that is to be careful of investing in something that you don't understand.

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+1 to this.

This is why I asked our OP how much she was contributing now.  The most important step for her to get more secure about saving money toward retirement -- of any kind and in any fund.  If our OP invests money in say the S&P 500, and it then loses value quite a bit (which may well happen next year) it will create a bad feeling about investment on her part.  If this combination of safety and return is what she needs to push her into putting more money into her tax-sheltered accounts, that is more important IMO than the exact fund into which she puts it.

Just my thoughts.  I certainly agree that she should be spending the next several months learning a lot more about investment and retirement planning.  The booklet IF YOU CAN (Wiliam Bernstein) might be a good place for her to start -- it's free on the web.  It's written more with younger folks in mind, but the ideas are still the same.

[Jnbmom]

Thank you all for the advice and suggestions.

I had a meeting set up with the financial guy at work but had to cancel with my mom's passing. But I am going to reschedule and sit down and see where I am and where I need to be going .

[Guyatthebeach]

Jnbmom,

NFCU is excellent to deal with when you have IRA's. I already have a Roth IRA with them and I just opened another on with this rate. 

You should definitely look into it.