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Have you ever wondered: “Am I really saving enough for retirement?”

Do you wonder how your retirement savings compare with others your age?

The average person in their twenties has around $16,000 in retirement savings.
The average person in their thirties has saved about $45,000.
Americans in their forties have median retirement savings of around $63,000.
Americans in their fifties have median retirement savings of about $117,000.
Americans in their sixties have median retirement savings of approximately $172,000.

Senior couple relaxing outsideYou may have saved much more – but have you really saved enough?

You may need to save more for retirement than you realize. It is very common for people to underestimate their retirement savings and retirement income needs. Whether you are 5 years or 35 years away from retiring, you need to be confident that you are doing the right things for your financial future – saving enough, investing what you save in a way that is appropriate for you, and managing risks to your savings.

Now is a great time to check and see if you are on track toward your retirement savings goal. Ask about setting an appointment with one of our Citizens Wealth Management financial advisors at any of our CNB offices so that we may quickly review how you are doing so far. If anything about your retirement saving or investing strategy needs adjusting, it is better to plan those adjustments now than to regret not making them later. Call 419-358-8060 ext. 153 or email cwmg@lpl.com to make an appointment.

Securities offered through LPL Financial, member FINRA/SIPC. Insurance products offered through LPL Financial or its licensed affiliates. The investment products sold through LPL Financial are not insured Citizens National Bank of Bluffton deposits and are not FDIC insured. These products are not obligations of Citizens National Bank of Bluffton and are not endorsed, recommended or guaranteed by Citizens National Bank of Bluffton or any government agency. The value of the investment may fluctuate, the return on the investment is not guaranteed, and loss of principal is possible.

– See more at: www.cnbohio.com/AboutUs/CNBNews/CNBConnection/Default.aspx

Health Care Costs in Retirement – Free Seminar

Medicare_Header_0417Deborah Boisselle, VP Investments of Citizens Wealth Management Group, Featured Speaker

With health care spending projected to grow 5.8% annually, health care costs remain the largest threat to retirement savings. Deborah Boisselle, VP Investments of Citizens Wealth Management Group will present a free seminar to the public in order to help gain a better understanding of:

  • Coverage options including Medicare
  • Health care costs in retirement
  • Steps you can take to develop a plan with your financial advisor.

Seminars will be held at the following locations. Refreshments will be served at each.

  • Tuesday, May 16, 6:00 pm, Holiday Inn Express, 941 Interstate Dr, Findlay
  • Wednesday, May 17, 6:00 pm, Holiday Inn & Suites, 803 S. Leonard Ave, Lima
  • Thursday, May 18, 6:00 pm, Stone Ridge Golf Club, 1553 Muirfield, Dr., Bowling Green

Ms. Boisselle has worked in the financial services industry since 1985 and has worked for LPL Financial since 1996. LPL Financial is one of the leading financial services companies and the largest independent broker/dealer in the nation. Citizens National Bank partners with them to offer wealth management and investment services to its clients.

Registration is free, however RSVP is required. Call 419-358-0937 or email kimberly.swank@lpl.com by May 12.

To learn more, visit https://cnbohio.com/investments/.

Retirement Planning Can Start with an IRA

retirement-savingsThese accounts make a good “first step” in retirement saving.
Provided by Citizens Wealth Management Group

Sooner or later, people decide to start saving and investing for retirement. When that starting point arrives, taking that “first step” can seem like a big deal. Opening an Individual Retirement Account (IRA) amounts to an easy “first step” in retirement saving for many.

When you invest through a traditional or Roth IRA, you give those invested assets the potential to grow with compounding and you also position yourself for present or future tax savings.

How does an IRA work? An IRA is not an investment in itself, but an account into which various investments can be placed. It is yours; you control it. In that way, it differs from an employer-sponsored retirement account that you lose immediate control over when you leave a job.1

IRAs are tax-advantaged. In both Roth and traditional IRAs, account earnings compound with tax deferral until withdrawn – that is, they grow without being taxed.

With a traditional IRA, contributions are usually tax-deductible, based on your income, but withdrawals are taxed as ordinary income after age 59½ (a 10% penalty often applies to withdrawals made before that). With a Roth IRA, tax-deductible contributions are not permitted, but your earnings can be withdrawn tax-free. (Contributions will not be taxed when you withdraw them either, as long as you are the original IRA owner and have had the Roth IRA for more than five years.)1

So there you have the main difference between a traditional IRA and Roth IRA: while both give you a chance to build retirement savings with tax advantages, the traditional IRA offers you a sizable tax break today while the Roth IRA offers you a big tax break tomorrow. Or to put it another way (as some have), a traditional IRA lets you amass tax-deferred savings while a Roth IRA lets you amass tax-exempt savings.1,2

Should you open a traditional IRA or Roth IRA? Several variables should be considered as you make your choice, and a chat with a financial professional can help you weigh them. One key question to consider: do you think you will be in a lower tax bracket when you retire? If you do, a traditional IRA might be the better choice. If you have decades to go until retirement and think you will retire to a higher tax bracket than you are in today, the Roth IRA may be the better choice. Some savers “hedge their bets” and open Roth and traditional IRAs.3

Given compounding, the future tax break offered by a Roth IRA may be profound indeed. Roth IRAs also have two other compelling features. One, you never have to make mandatory withdrawals from them starting in your seventies (as with traditional IRAs). Two, you can keep contributing to them all your life, whereas contributions to a traditional IRA are prohibited after the year in which you turn 70½. Certain couples and individuals cannot have Roth IRAs, however, as they have incomes well over $100,000 (the precise thresholds are periodically adjusted upward for inflation).1

Some traditional IRA owners convert their accounts to Roth IRAs. That is a taxable event, and if the traditional IRA is large, a Roth conversion may not be worth the effort: the resulting income tax bill may be too large to handle and even offset the potential long-range benefits.3

How do you open an IRA? Just about any financial professional can help you do that; you can even do it online and at many bank and credit union branches. You should try to open one with low annual fees, as even a 1% annual account fee subtly eats into your IRA balance. Quite often, opening an IRA is just a matter of filling out an application (and a beneficiary form) and writing a check. Alternately, you may be able to transfer money from a bank account to start an IRA.4

What are the drawbacks of IRAs? First, their annual contribution limits. Right now, you can only contribute a maximum of $5,500 a year to a traditional or Roth IRA ($6,500 if you are 50 or older). If you have multiple IRAs, your total yearly contributions to all of them must not exceed that limit or you will incur an IRS penalty. This annual contribution ceiling is low compared to common workplace retirement plans such as 401(k)s and 403(b)s.5

Many Americans would like a retirement account that never loses money. A Roth or traditional IRA is not that account. IRA assets are not usually allocated to riskless investments, and when you have investment risk, you have potential for investment losses. IRAs are not insured by the FDIC or any other federal agency.1

In response to the desire for riskless retirement saving, the federal government recently created the myRA, a Roth IRA whose value is guaranteed to increase. Its return is pegged to the return of the government securities fund for federal employees, which averaged 3.39% a year from 2003-2013. The myRA yearly contribution limits are exactly the same as yearly Roth IRA contribution limits. After 30 years or when its balance hits $15,000, a myRA converts to a private-sector Roth IRA. A myRA is basically a vehicle to help Americans who have few or no avenues to save for retirement due to their line of work or income levels.6,7

To learn more, contact a Citizens Wealth Management Advisor at any of our Citizens National Bank office locations or visit their website, www.cwmgohio.com.

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

Citations.
1 – us.hsbc.com/1/2/home/invest-retire/retirement/ira [2/16/15]
2 – fool.com/money/allaboutiras/allaboutiras03.htm [2/16/15]
3 – schwab.com/public/schwab/nn/articles/Roth-IRA-Conversion-Look-Before-You-Leap [5/1/14]
4 – fool.com/money/allaboutiras/allaboutiras14.htm [2/16/15]
5 – fool.com/retirement/iras/2015/01/11/ira-contribution-limits-in-2014-and-2015-and-how-t.aspx [1/11/15]
6 – money.usnews.com/money/retirement/articles/2014/11/24/how-retirement-benefits-will-change-in-2015 [11/24/14]
7 – myra.treasury.gov/about/ [11/24/14]

Securities offered through LPL Financial, member FINRA/SIPC. Insurance products offered through LPL Financial or its licensed affiliates. Citizens National Bank and Citizens Wealth Management are not registered broker/dealers and are not affiliated with LPL Financial.

Not FDIC Insured | Not Bank Guaranteed | May Lose Value | Not Insured by any Federal Government Agency | Not a Bank Deposit

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