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What a Credit Union can do for Forty- and Fiftysomethings

Chris Gottschalk

Chris Gottschalk About The Author

May 16, 2019 7:32:00 AM

When you hit your 40s and 50s, your financial priorities shift. Almost overnight, having enough money for retirement becomes a priority. If that weren’t enough, you may also be called upon to help take care of your parents, even as you’re trying to manage your own family’s budget and send your kids to college. Sometimes it can seem like the weight of the world rests on your shoulders.

Being a forty- or fifty-something has its perks, though. At this point in your life, you’re more than likely well-established in your career, which should also have a corresponding increase in your financial stability. If you’ve managed your money well, you’ve got a lot of options open to you.

That’s where a credit union can come in. Credit unions have a lot of services that can really help people in their 40's and 50's, and taking advantage of them can place you on solid financial ground.

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Get a Personal Loan to Pay Off High-Interest Debt

While debt isn’t always bad, high-interest debt such as medical bills or credit card debt can be crippling at any age. High-interest debt is worse in your forties and fifties, though, since you’re paying down debts with money that should be going into your retirement fund.

One of the best ways to eliminate high-interest debt is by consolidating them with a personal loan. A credit union can offer you a loan that has a low fixed rate with a fixed term, meaning you know exactly how much you’ll have to pay and for how long. As an added bonus, paying off a personal loan can give your credit score a real boost.

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Talk with Financial Advisors to Help Plan Your Retirement Strategy

Once you’re in your forties and fifties, you’ll want to think seriously about your retirement strategy. While some people have been preparing for their retirement ever since they got their first job, other people have only just started to realize how much they’ll need to set aside to retire comfortably.

Regardless of where you are in your retirement strategy, you will benefit from a visit to a financial planner. Many credit unions employ or are partnered with financial planners who will be happy to sit down with you, look over your finances and make a plan with you. They will also help you set up accounts which can aid you in reaching your goals.  

Read More: The Basics of Estate Planning

Put Extra Money in a CD or IRA

If you get some extra money, like a holiday bonus, don’t spend it. Instead, put it into an interest-earning account. While you could put it into a savings account, a CD or an IRA might be a better bet.

When you get a CD (certificate of deposit), you agree to keep your money at the credit union for a specific length of time. In return, the credit union gives you a higher interest rate than you would get from a savings account. In general, the longer length of time you keep your money in a CD, the higher the interest rate.

An IRA, on the other hand, is an Individual Retirement Account. You can deposit money into these accounts and invest it how you see fit. Any money in this account is tax-deferred, so you won’t have to pay taxes until you withdraw it. While you may not get a set percentage rate, your dividends will be compounded monthly, and there are no maintenance or service fees for creating an IRA with First Alliance.

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 Get Term Life Insurance

When you get to middle age, you have to start thinking about what will happen to your loved ones if something happens to you. This is where insurance comes in. A good life insurance policy can greatly help out your family in the event of your death, and good medical, home and auto insurance policies will make sure that an accident won’t wipe you out financially.

Most credit unions have partnered with insurance companies to give you discounted rates on all types of insurance policies. This not only helps you make sure your family is safe in terms of an emergency; it also helps you keep more money so you can enjoy the here and now.

Join a Credit Union Today

Whether you’re on solid financial ground in your 40's and 50's or trying to catch up to where you should be financially, a credit union can be a tremendous help. A credit union has a lot of tools to help you achieve your financial goals, from assisting you with debt consolidation to providing higher interest rates for savings accounts and CDs. Get started with a credit union like First Alliance, and get access to the tools and information you need to bolster your financial position. 

Learn more about credit unions with these additional resources: