Denton County Living Well Magazine November/December 2017 | Page 27

3. Revisit the Roth question
With the assumption that taxes usually increase over time, a
Roth 401(k) generally makes sense for young people. How-
ever, with returns expected to drop and savings amounts
likely to be a larger determinant of total wealth accumula-
tion, it’s time to rethink this conventional wisdom.
An Individual Retirement Account (IRA) can hold savings
certificate funds, like those available at DATCU. These
offer a predictable rate of return that isn’t dependent on
macroeconomic forces, thus minimizing risk.
If a tax deduction now in the form of a traditional 401(k) con-
tribution would enable you to save more, it might be worth-
while. Growing your nest egg is essential; you can find ways
to manage taxes once you’ve got enough saved for retirement. The principles of smart retirement planning don’t
change. Spend less than you earn. Avoid debt. Invest
as much as you can, as often, and as cheaply as pos-
sible. With a bit of planning, you’ll enjoy a prosperous
retirement.
4. Look for predictable returns
As interest rates rise, growth slows as a result of decreased
credit availability. That same force makes savings through
other instruments more valuable. Retirement planning is one of the most important jobs you’ll
ever do. If we can help you or if you have questions, please
give us a call at DATCU at 940-387-8585. It would be our
pleasure to serve you.
Glen McKenzie, President/CEO of DATCU Credit Union,
may be reached at 866-387-8585.
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