Planning for Retirement

It's never too early — or too late — to start saving for retirement. We've got some timeless tips for growing your nest egg.

Retirement Advice for All Ages

Whether you've just started your first job or you're already retired, now is a great time to think about your retirement finances.

Start Early

The best advice for retirement is to start as early as possible — preferably with your very first job. The power of compound interest is on your side, and you can save significantly more money in the end, just by starting a few years earlier.

Don't Shortchange Yourself

Make sure you're saving enough by using a retirement calculator. If you're starting to save in your 20s, many experts recommend you save 10-20 percent of your gross income. That can feel like a lot, so don't be afraid to start with a smaller number and work you way up one percent at a time over the years.

Pick the Best Retirement Account

If your employer offers a match, you'll definitely want to put enough in their sponsored plan to make that free money. After that, though, shop around and find the best account for you. You may find that an IRA is more flexible and fits your goals better than your employer's plan.

Be Realistic about Your Retirement Goals

If you're nearing retirement, take a look at your finances and decide what's realistic. If you have plenty of savings and you live a frugal lifestyle, then you may even be ready to retire today. But, if you're hoping to travel the world in a yacht and don't have the funds to back that up, working for a few more years — and saving diligently — is a better plan for you.

Ask an Expert

Retirement savings can be complicated. Don't be afraid to ask someone who knows the ins and outs of the field. At Bank of Texas, our financial planners can help. We have specialists who focus on Retirement Planning, and they can help you make the most out of your savings, no matter where you are in your retirement journey.

Top 5 Things You Should Know About Saving for Retirement

How Big Should my Emergency Fund Be?

Most financial professionals suggest that you have three to six months of living expenses in your cash reserve. However, the actual amount should be based on your particular circumstances.

Individual Retirement Account (IRA)

A tax-deferred custodial account or trust used to save for retirement. Up to $5,000 per year can be contributed to an IRA, although people 50 and older can contribute up to $6,000 annually. Earnings are tax-deferred until withdrawal of funds, beginning at age 59½. Withdrawals at retirement age are fully taxable. Early withdrawals are allowed but carry a 10-percent tax penalty.

How Much Do You Save for Retirement?

We Recommend

Saving for retirement with us is simple. We'll help you set up an account and rollover any other retirement accounts you may have. And, if you need more assistance, we offer Retirement Planning services, too!

Ready to Take the Next Step?

At Bank of Texas, we're here to help you explore different options for retirement planning.

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