5 Bank Fees That Are Draining Your Savings
- Monthly maintenance fees
- Minimum balance fees
- ATM fees
Lois and Peter are worried about their financial future. “We want our one-year-old son, Raymond, to go to college, but we’re concerned that in 17 years, the cost might be more than we can afford,” says Peter. “We also need to save for our retirement,” adds Lois. “Can Discover help us pursue both of these goals?” The answer, fortunately, is yes.
Lois and Peter aren’t alone. Millions of Americans are finding it a struggle to balance the high cost of higher education while saving for their own retirement. If you’re one of them or would like to help someone faced with this situation, turn to Discover for help. There are steps we can take to help you overcome this double-sided planning hurdle.
Because Lois and Peter won’t need their money for 17 years, they decided to begin saving now and often. Starting a regular investment program long before needing the money can potentially work in their favor. That’s because compounding—which is what happens when previous earnings from a deposit account remain on deposit and, in turn, earn more money.
Meanwhile, they also opened an Individual Retirement Account (IRA) that they plan to contribute to annually to make sure they have money for their Golden Years.
If you’re feeling overwhelmed while investing for long-term financial goals, why not create a workable financial plan and begin to invest regularly? Over time, even small sums of money invested could potentially add up. And by all means, don’t forgo investing for your own Golden Years. After all, there are no retirement scholarships. Investing in an IRA has many benefits. For example, if need be, usually you can make distributions for qualified higher education expenses1. With a Traditional IRA, you may benefit from a tax deduction now while your earnings grow tax-deferred. With a Roth IRA, you make contributions with after-tax dollars, but qualified distributions will be tax-free. Discover IRA CDs give you the choice of either type of account and offer competitive rates with guaranteed returns.
Millions of Americans are finding it a struggle to balance the high cost of higher education while saving for their own retirement.
These are just some ideas for stashing away money for both college and retirement, but don’t make important financial decisions in a vacuum. Remember the role that your financial consultant can play in helping you solidify your financial future. He or she has the experience and the resources to help you evaluate your situation and may be able to help you maintain your financial equilibrium. Together, you can craft a plan for the future and discuss how a Discover Roth or Traditional IRA CD might help you achieve some of life’s most important goals.
In addition to offering IRA CDs, Discover also offers an Online Savings Account to help you with your short-term savings goals, a full range of CDs to help you save for the future, and Money Market Accounts that offer competitive rates. Open an account online in minutes or call our 24-hour U.S.-based Customer Service at 1-800-347-7000.
1Non-qualified withdrawals may be subject to a 20% withholding and a 10% federal penalty tax in addition to ordinary income tax.
The article and information provided herein are for informational purposes only and are not intended as a substitute for professional advice. Please consult your tax advisor with respect to information contained in this article and how it relates to you.
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