If you have a plan you are twice as likely to actually save for retirement.

I hope I have convinced you that it is wise to save for retirement – and to begin now and keep saving faithfully until you do retire.  Fewer than half of Americans have done the math to determine what level of income they will need in retirement while over half have less than $25,000 set aside for retirement.

With the average time in retirement at 20 years it is clear that $25,000 won’t get you very far.  Once you start paying attention to retirement planning you will find a number of online resources to assist you.

Here are just a few government sites:

• my Retirement Account
• Social Security Administration
• United States Department of Labor

Other options are Motley Fool, Yahoo Finance, Fidelity, Charles Schwab and the list goes on.

All of these sites can help you plan for retirement.  At ssa.gov you can also get a good estimate of what your expected Social Security income will be.  This is an important component of your retirement income but it is highly unlikely that you would want to live on just Social Security.

Once you have a plan, be sure to revisit it twice a year – check in to see if you are making the desired progress towards your goals and to see if your investment choices are still good ones.  If you create a good plan, stick with it, and review it periodically, you will give yourself the best possible retirement.

Good luck!

“I can’t afford to contribute to my employer-sponsored retirement plan”.

In reality, you can’t afford not to contribute, although 30% of employees forego their opportunity to get matching contributions.  Many employers offer attractive matching donations to employees contributing to their own retirement funds.  In a typical scenario you might contribute 4% of your salary to the plan and your employer will match that contribution – either dollar for dollar or at a 50% rate.  Either way you earn a 50-100% return immediately.  Even if all you do is leave the money in a savings account, you are well ahead of the game.  Your employer may also be able to give you access to planning and investment advice, it is worth asking.

If your employer does not offer a plan you can still set money aside via an Individual Retirement Account (IRA).  Your contribution may be tax-deductible and the earnings in the account won’t be taxed until you retire – two potential tax savings opportunities.  As mentioned in my last post – the key is to begin saving and to set money aside from every paycheck.

If funds are tight and you don’t think you can “afford” to save, take another look at where you are spending your money.  How often do you go out to lunch or dinner?  Do you really need those new clothes, that new car, a weekend trip?  There are almost always opportunities to reduce your spending without turning into a no-fun-having hermit.  If you find a way to begin saving and keep saving, your retirement years will be more enjoyable – so go for it.

“I don’t need to save for retirement – I am only 25 years old.”

Well, I have news for you.  You DO need to save for retirement and if you are 25 and haven’t started you are already behind!

In my mind, saving for retirement is simple but not easy.  It is simple because “all” you need to do is begin saving regularly and keep saving regularly until you retire.  It isn’t easy because money always seems to be tight; student loans give way to mortgage payments, give way to educating children, give way to… you get the idea.

I like the way a former co-worker of mine looked at it – she always put a part of her check into savings and said she was simply paying herself first.  Getting into the habit is the key.  You may need to start small but getting started will pay big dividends down the road.

I saw an article on Yahoo Finance recently that looked at the real cost of a fancy cup of coffee a day.  By their analysis, over 40 years you could increase your retirement savings by over $450,000 if you brewed your own coffee rather than paying $4 for a cup each day.  That $450,000 would provide $2,000 a month of retirement income.  So, how badly do you really want that latte?

Most of us look forward to July 4^th as a day for family and fireworks.  Recently I was reminded of another aspect of our Independence, the high cost of maintaining it.

About 100 of us were waiting to begin a golf tournament to raise funds in support of a worthy charity.  At the event were three US Navy Officers – a Rear Admiral, the Commander of the USS George HW Bush (an aircraft carrier), and the leader of the aviators who fly from the ship.

The three of them in turn relayed what life is like on a carrier, what it is like to land an airplane on a pitching carrier deck, and the importance of the work our armed forces do around the world.  When they finished their remarks someone suggested we sing God Bless America.  We did, poorly but with spirit.  Everyone present was clearly moved by the moment.  As Americans we owe a great deal to our armed forces, please think of them on the 4^th.

 

Well, just about everything is the short answer.  For starters, you can locate the nearest Biddeford Savings ATM or Branch Office.  But most of all you can do your banking!

• You can deposit a check using Mobile Deposit
• You can pay your bills using Bill Pay
• You can send money to a family member or friend using PopMoney
• You can check your account balance and activity
• You can transfer funds between accounts here at Biddeford Savings

As you can see, you can do just about all your banking through our mobile banking app.  That means you are free to travel around this summer without losing track of your money! Why not sign up today?

Here’s a great mobile banking video tutorial with more details!

 

I hope you get the chance to enjoy some of Maine’s great outdoors during our (all too brief) summer season.  We are blessed to live in a state which offers so many activities – from the ocean to the mountains and with the lakes and ponds in between –there is always something to do.

If you have a smartphone or a tablet you won’t need to worry about your banking while you are enjoying your summer vacation.  You can take Biddeford Savings with you wherever you go.  We offer a mobile app for your smartphone and tablet that allows you to do your banking wherever you are this summer.  Our online banking service gives you another option, as long as you have access to the internet.  And we still offer telephone banking if that is more your style.  Just remember, you can choose how and when you do your banking, even when you are on the road this summer!

Father’s Day comes around on June 21st this year.  Our children were born in 1988 and 1992 so this will be my 27th year as a father on Father’s Day.  If the children cannot be here they will call, or at least text, to let me know they are thinking of me.

Being a father is one of the hardest, most fun and most rewarding things I have experienced.  I am proud of the young adults we raised and I treasure the memories we created as they grew up.  Chances to spend time with them now are fewer and farther in between but no less important.

If you have the opportunity, I hope you will at least check in with your dad on June 21st to say thanks.  We love to hear from you!

 

If you have a debit card and are traveling out of the state or country this summer, please let us know before you go. By telling us when and where you will be traveling, we can do our best to safeguard your account without cramping your style.

For instance, if you let us know you are going to Scotland we won’t be surprised when charges come in from there – making it more likely that you will not encounter any problems on your trip. This is a good practice for your credit cards, too.  A quick call to your credit card company will help make your travel incident free! Safe travels.

Do you like dogs or cats or maybe both?  We currently have a wonderful 13 year old mutt – a pound puppy.  I tell her that she came from the rascal patch at the pound but over the years she has brought great joy to our family.  At least she has most of the time – we won’t talk about messes on carpets or the porcupine incident.

This month Biddeford Savings is holding a Furry Friends Campaign in our branches to benefit the Animal Welfare Society. For the past several years we have given customers the opportunity to donate much needed supplies for homeless pets.  And our customers have always responded generously!  I hope you will join us this year in supporting the AWS and their good work on behalf of deserving pets.

Please visit our Facebook Page for more information on the Furry Friends Campaign!

You’ve made a wish list of what are looking for in your first home and you have an idea of how much you can spend. Now what?

1. Have a Buyer’s Broker – Realtors “work” for the seller in a real estate transaction, that is who pays their commission after all. You can easily have a broker work for you – it is a simple step – and it is worth doing to ensure the broker represents your interest. Share your wish list with the broker and start looking at houses.
2. When you look at houses take a notepad and make notes on each house as you go through it. Trust me, once you have looked at 4 in a day you won’t remember which house had which features.
3. Remember that wish list? Well, you probably won’t find one house with everything you wished for. Be prepared to make trade-offs to get the house that best meets your criteria.
4. Once you have a home under Purchase & Sale get it inspected by a licensed Home Inspector. It is best to attend the inspection as you will learn a great deal about the house you are looking to purchase. If the inspection finds that costly repairs will be necessary you can renegotiate the price or walk away. Whatever you do, do not ignore the inspection report.
5. Have some money in the bank after the closing. Even if you don’t encounter unexpected repairs to the house you will find getting settled in your first house expensive. For instance, do you have a lawnmower, a snow blower, yard tools, or enough furniture for the house? Those things all add up and do so quickly.

If you follow these simple steps you improve your chances of having a smooth transition into home ownership. And be sure to check out Biddeford Savings’ website for our three-part First Time Homebuyer videos to help you on your path to homeownership! Good luck!