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Managing Retirement Savings

Managing Retirement Savings
3 Tips from Sharon Richter, AVP & Branch Operations Manager



I'm thrilled to share some valuable insights with you on the topic of retirement savings. As the Branch Operations Manager at the Star Bank Verndale office, I've had the privilege of assisting countless individuals and families in their journey toward financial security during their golden years. I've witnessed firsthand the challenges and triumphs that come with retirement planning, and I'm excited to offer you three essential tips that can help you build a solid foundation for your retirement savings. I hope you'll find these tips both practical and beneficial. Let's embark on this retirement savings journey together – your future self will thank you!


Tip 1: Roll Old Retirement Savings into Current 401(k) 

If you’ve participated in 401(k) plans at past places of employment, consider rolling those savings into your current employer’s 401(k) plan. Consolidation can simplify your retirement portfolio, making it easier to assess and manage. Doing this also provides you with a clear picture of your overall retirement portfolio and investment strategy. 

Convenience is but one benefit of consolidation, however. Some 401(k) plans offer lower fees, which can save you money in the long run. And, your current plan may offer you a wider range of investment options, enhancing the growth potential of your portfolio.  

Check with your current plan’s administrator to see if such consolidation is allowed. Before making any decisions, we advise you to consult with a financial advisor to ensure that a rollover aligns with your specific goals and circumstances. Reach out to your local Star Bank office to speak with a banker for help or guidance. 

Tip 2: Regularly Review your 401(k)  

Reviewing your 401(k) on a monthly (or quarterly) basis helps ensure that your contributions, investment allocations, and personal information are accurate. We advise people to take time at least once per year to assess how they’re progressing with their retirement savings goals. If you are not making the progress you need to make, you can adjust your strategy or risk tolerance before too much time slips by. 

It’s also a good idea to review your 401(k) when experiencing major life events, such as a marriage, the birth of a child, or a change in employer. Staying proactive about periodic reviews helps you stay on track and make informed decisions to optimize your savings.  

Tip 3: Consider Other Retirement Saving Options 

Star Bank offers a variety of account options to provide steady earnings and an array of potential tax benefits. We accept IRA transfers, rollovers, and direct rollovers from your 401(k). Other retirement savings options include Individual Retirement Accounts (IRAs), which could complement your existing retirement strategy; Roth IRAs, which provide tax-free withdrawals in retirement; and Education IRAs, designed to be used for education expenses. Star Bank also offers something known as a Simplified Employee Pension, or SEP, which is often utilized by the self-employed or business owners.  

Your tax advisor should be able to advise you on what type of individual retirement plan aligns with your goals and situation.  

Meet Your Retirement Goals at Star Bank 

While the retirement savings tools offered at Star Bank are diverse and come with differing tax implications, the bottom line is to utilize at least one savings tool to set aside money for retirement — and maximize its potential. A good rule of thumb for retirement savings is something we call the $1,000 rule. That means establishing a savings goal of approximately $240,000 for every $1,000 of monthly income you want to have available to you during your retirement. 

If you hope to have $4,000 a month of income coming in after you retire, your nest egg should be at least $960,000. And while a savings target that approaches $1 million can seem overwhelming today, remember that retirement planning is a long-term endeavor. 

We encourage you to be proactive about managing your retirement savings to secure your future. Tailor your retirement savings toolbox to your lifestyle, circumstances, and long-term goals. And don't forget - Star Bank is here to help you succeed along the way!