No Summer Vacation for Your FinancesBy First IB on July 23, 2015
Summers can be a relaxing time for family activities, travel and vacations. While you may be looking forward to enjoying a slower pace this summer, it’s not the time to neglect your finances. Before your summer routine shifts you off track, here are some issues to consider:
Borrowing While Interest Rates Are Low
With rates at low levels, you may want to consider refinancing your home mortgage. You owe it to yourself to investigate whether it makes sense to refinance to a different type of mortgage (Adjustable-Rate Mortgages or 15-year fixed) to match your mortgage with your needs. Check our current rates.
Rethinking Your Retirement Plans
The decline in the stock market eroded the value of many retirement accounts. Without an assured recovery in the value of your investments, the only guaranteed way to have more money for retirement is to save more while you’re still working. [We don’t mean to brag, but the interest rate for our Money Market Savings account is nearly 9x the national average*!] Be sure to take advantage of all the retirement plan options offered by your employer. Then, consider contributing to an IRA to save even more.
Putting Your Finances on Auto-Pilot
Establish a regular savings program by having $500 (or some other amount) transferred from your checking account into an interest-bearing savings account every month. Periodically move those funds into your investment portfolio.
- Have your mortgage and credit card payments made automatically from your checking account.
- Save for a child’s college education with an automatic transfer into a special savings account.
- Read our other suggestions for simplifying your finances.
Making good decisions and taking a few actions now can help you reach your long-term financial goals — and enjoy the summer even more. Don’t forget the sunscreen!
*The National Average Money Market APY provided by Bankrate.com is 0.09% APY and is accurate as of 6/11/2015.