If nothing else, the economy of recent months should have taught us that no one’s financial future is safe today. In the past we were all encouraged to focus on our 401k investments associated with our places of employment and for many of us, this simply was simply done automatcally and forgotten. Although many financial advisors have jumped ship in recent months, the vast majority simply wanted to sink their clients investments in the stock market. In the real world, those 401k investments depended too much upon the health of the stock market but most of us were hesitant to look for alternatives. Today, there is no doubt that we as individuals should take action and personal responsibility for financial planning our retirement.
There are many ways that you can go about personal financial planning for retirement. You don’t have to go with the IRA (Individual retirement Account) through your local bank, but that can be an option for you. Be sure to check if your bank has FDIC insurance for those particular accounts. Though that insurance will not protect you if your investments lose money, it will protect your investments if your bank were to fail. Recent history has shown us that the financial health of our bank is not always what we might think it to be. A bank representative will be happy to discuss financial planning for retirement with you in detail but always remember their information might not be the most objective view you can obtain.
There is no doubt that a simple savings account kept in a bank protected by the FDIC is always going to be the safest means of saving for the future. But be sure to note what current law states is the maximum amount per person and per account is covered under the FDIC insurance. Most people feel this should be a substantial part of any retirement plan. Be sure to check interest rates but in today’s market, they should vary only slightly if at all.
Money market accounts are safe when financial planning for retirement. But again double check their security since they may not always be covered by the FDIC. Money markets should yield a bit higher interest rate then savings accounts but the money is used for riskier investments by the bank. They also usually have a minimum amount required for opening the account.
There is a huge amount of financial planning information available today on the web. The most important step is to take responsibility for yourself so you can feel more secure in making decisions about your retirement.
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