A Beginner’s Guide to Saving for Retirement

Home Blog A Beginner’s Guide to Saving for Retirement

Posted On: January 20, 2022 by Peoples Bank of Kankakee County in: Budget Personal Finances Retirement Saving

It may seem like a lifetime away, but retirement has a way of sneaking up on all of us. Something to remember when it comes to retirement is that the earlier you start saving, the better. Plus, you’re never too young to invest in your future. Here are some helpful strategies you can implement to set yourself up for a successful retirement.

1. Rid Yourself of Debt

The first step in creating a retirement fund is to look at what you’re dealing with in terms of debt. Make a plan to pay off each debt as soon as possible. You may do this by putting extra money towards your lowest-balance credit card, or perhaps towards the credit card with the highest interest rate.

2. 401(k) Plans

Investing money in an account specifically set aside for retirement allows you to store up without paying taxes on gains until you reach retirement. If your employer offers a 401(k) plan, that’s a great place to start. Typically, employees contribute a portion of their salary to their 401(k) and the employer may offer a matching contribution up to a specific limit.

3. Open an IRA

On the same note, individuals can also choose to save for retirement on their own and open an Individual Retirement Account, or IRA. This retirement account has lower contribution limits than a 401(k). It doesn’t have to go through your employer, so the amount you invest is under your control. If your company doesn’t provide a 401(k) match, you may choose to max out on your personal IRA and put the remaining money into your 401(k). Working with a financial advisor is extremely beneficial as they will help you know what the right solution is for you.

4. Create an Emergency Fund

You may have a good amount of money stored up in your savings fund, but how much of that can be used in case of an emergency? An emergency fund is a separate savings or bank account used to cover expenses of an unforeseen nature. Keep your nest egg savings and your emergency fund savings separate so that you have a cushion if things go wrong. This will prevent you from needing to withdraw from your retirement account prematurely. A good rule of thumb is to set aside three to six months’ worth of living expenses in an emergency fund.

5. Automate Your Savings

If you have a hard time staying disciplined and remembering to contribute to your savings account each month, there’s a way to help with that. By making your savings automatic, you won’t even

have to think about it since it will transfer for you. Set a savings goal for the year, figure out how much you need to save each month in order to make that happen, and go from there!

6. Keep an Eye on Your Account

If you’re making saving for retirement a priority in your 20s, you’re in a good place already. Check back on your account periodically to watch your savings grow. That will continue to motivate you throughout your 30s, 40s and beyond. The fact is, when you are young, time is on your side so start early and start today.

7. Think About What You’re Saving For

There are plenty of cool things you are saving for when it comes to retirement. You may want to live somewhere tropical or have a vacation home. Maybe an RV is more your style and you and your partner want to travel the country. Determining what your plan for retirement is will help you know how much extra to save for the fun stuff.

Questions about retirement or unsure where to start? Our team is here to help! Contact Peoples Bank of Kankakee County to begin planning your financial future.

An overdraft occurs when you do not have enough money in your account to cover a transaction, but we pay it anyway. We can cover your overdrafts in two different ways:

We have standard overdraft practices that are available after your account has been open for 30 days and as long as you maintain your account in good standing.
We also offer an overdraft protection plan, Overdraft Protection Sweep, a link to a savings account. It may be less expensive than our standard overdraft practices. To learn more, ask us about this plan.

This notice explains our standard overdraft practices.

What are the standard overdraft practices that come with my account?

After your account has been open for 30 days and as long as you maintain your account in good standing, we do authorize and pay overdrafts for the following types of transactions:

Checks and other transactions made using your checking account number
Automatic bill payments

We do not authorize and pay overdrafts for the following types of transactions unless you ask us to (see below):

ATM transactions
Everyday debit card transactions

We pay overdrafts at our discretion, which means we do not guarantee that we will always authorize and pay any type of transaction.

If we do not authorize and pay an overdraft, your transaction will be declined.

What fees will I be charged if Peoples Bank of Kankakee County pays my overdraft?

Under our standard overdraft practices:

We will charge you a fee of up to $30 each time we pay an overdraft.
The maximum daily overdraft fee per presentment or item paid using the Overdraft Reserve Program is $150.00 per day.
No per item handling fee will be charged on de minimis overdrafts. De minimis overdraft for this policy means transactions that overdraw your account by $30 or less.
There is an overdraft fee of $5 per day that will be charged beginning the 4th consecutive business day your account is overdrawn.

Nonsufficient funds (NSF) fees - if an item drafted by you (such as a check) or a transaction you set up (such as a preauthorized transfer) is presented for payment in an amount that is more than the amount of money in your account and we decide not to pay the item or transaction, you agree that we can charge you an NSF fee for returning the payment. Be aware that such an item or payment may be presented multiple times by the merchant or other payee until it is paid, and that we do not monitor or control the number of times a transaction is presented for payment. You agree that we may charge you an NSF fee each time a payment is presented if the amount of money in your account is not sufficient to cover the payment, regardless of the number of times the payment is presented.

PAYMENT ORDER OF ITEMS - The law permits us to pay items drawn on your account in any order (for purposes of this section "items" means checks, orders and electronic transactions). To assist you in handling your account with us, we are providing you with the following information regarding how we process those items. When processing checks and orders drawn on your account our policy is to pay lower numbered checks and orders in numerical sequence, but electronic transactions are paid first in the order received. The order in which items are paid is important if there is not enough money in your account to pay all of the items that are presented. There is no policy that is favorable in every instance. If the smallest items are paid first, you may have fewer NSF or overdraft fees, but the largest, and perhaps more important items (such as rent or mortgage payments) might not be paid. However, if the largest items are paid first, your most important items might be paid but it may increase the overdraft or NSF fees if funds are not available to pay all of the items. We think our policy attains a reasonable balance between minimizing additional costs to you and paying your more important items. We encourage you to make careful records and practice good account management. This will help you to avoid creating items without sufficient funds and incurring the resulting fees.

What if I want Peoples Bank of Kankakee County to authorize and pay overdrafts on my ATM and everyday debit card transactions?

If you also want us to authorize and pay overdrafts on ATM and everyday debit card transactions after your account has been open for 30 days, you may opt in.

You have an ongoing right to change this consent at any time. If your overdraft privilege has been revoked for any reason, the opt-in or opt-out selection may not apply. Please contact your nearest office for more information.

Alternate ways to Opt In/Out or make changes:

By Phone. Our Customer Care Representatives can be reached at 815-936-7600.
By Mail. Peoples Bank of Kankakee County, 333 E. Court Street, Kankakee, IL 60901
In Person. Please visit your local office and ask a representative to help you decide which plan is best for you.