Third Quarter 2024
frontwavecu.com
Notes from the CE0 Bill Birnie, President/CEO
plan. That’s like getting a 5% raise – for free! And it all goes into your retirement plan – tax deferred. If you’re serving in the military,
“I wish I knew then what I know now.” Remember those lyrics from an old song. There’s so much truth in those simple nine words. As we grow older we learn stuff… And we regret. We regret that, out of fear of denial, we didn’t ask that person we really liked to the high school prom. We regret that we didn’t apply for that job. We regret that we made a poor choice in an expensive purchase. We regret the times we opted to fulfill our desires as opposed to our needs. And, we regret that we didn’t embrace a life-long habit of saving money. I get it! It’s hard to think about retirement when you’re young. It’s hard to remember that when it comes to accumulating wealth, time is truly our best friend. According to an AARP survey, 20% of adults over the age of 50 have NO retirement savings and 61% are afraid they will not have enough money to support their families in retirement. Forbes reports that in a nationwide survey of working age Americans, 79% agree that the nation is facing a retirement savings crisis. So it begs the question… How can you avoid becoming a victim of this crisis? Start early and often! Not tomorrow. Not next week. Start NOW! If you start when you’re young over time that savings will grow. Think about this… If you’re able to save $1,000 a year (that’s less than $84.00 a month) for 30 years you will have contributed $31,000 and, through the magic of compounding interest on average of 5% per year, your savings will have grown to $74,083! Don’t stop there! Every time you get a pay raise or promotion, add a part of that raise to your savings! If your employer offers a 401K retirement plan, you should participate in that plan enough so that you’re maximizing the employer’s match. If your employer offers a 5% match, you should be putting, at a minimum, 5% of your income into the
the Blended Retirement System (BRS) is available to you. It’s even better! You automatically receive a contribution of 1% of your pay to your Thrift Savings Plan (TSP) account from the Department of Defense AND, if you choose to contribute 5% of your pay they will match another 4%. That’s a total of 10% of your pay going into your TSP account every pay day! What’s best for you? It depends. There are several options available to you and it can be a bit overwhelming trying to sort out what is the best way for you to save. WE CAN HELP! Frontwave’s certified financial counselors will work with you to understand your financial posture, help you build a budget and walk you through the various savings options and retirement plans that are available to you. They know the BRS, inside and out! Investing in lottery tickets is not a viable retirement plan! Remember, time is your friend and PLEASE – when it comes to savings - START EARLY AND OFTEN!! Remember those lyrics… “I wish I knew then what I know now.”
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