Saving For Retirement in Your 30’s: The IRA Advantage
Your 30s are often marked by major financial milestones, such as buying a home, starting a family, and advancing your career. With so many competing priorities, saving for retirement can easily slip down the list. Still, this decade of your life is actually one of the most important times to focus on your financial future! An Individual Retirement Account (IRA) can be a great way to help you build long-term security without requiring a significant investment upfront. Why Your 30s Matter for Retirement Planning By your 30s, you’ve likely settled into your career and are earning more consistently than in your early 20s. This will give you a unique advantage while retirement planning: time plus earning power. Every dollar you save now can grow for decades through compound interest, making it much easier to reach your retirement goals later. Starting early doesn’t just mean more savings; it means flexibility. A solid retirement foundation can give you greater freedom to handle life’s surprises and make future decisions with confidence. The IRA Advantage An IRA is one of the most effective tools for retirement savings because it offers tax benefits, flexibility, and control over investments. Even if you already contribute to a workplace retirement plan, an IRA can help you build additional savings on your own terms. There are two primary types of IRAs to consider: Traditional IRA: Contributions may be tax-deductible, which can lower your taxable income today Investments grow tax-deferred Qualified withdrawals in retirement are taxed as ordinary income Pay taxes when you withdraw the funds in retirement, ideally at a lower tax rate Roth IRA: Contributions are made with after-tax dollars Investments grow tax-free Qualified withdrawals in retirement are completely tax-free. Great option for younger earners who expect their income (and tax rate) to rise over time. For 2025, the IRA contribution limit is $7,000 (or $8,000 if you’re 50 or older). Even small, consistent contributions can make a significant difference. Get Started with SouthStar Bank Your 30s are the perfect time to take control of your retirement strategy. With an IRA from SouthStar Bank, you can turn today’s small steps into tomorrow’s financial independence. Visit your local SouthStar Bank branch or explore our IRA options online to start building lasting retirement security, one wise decision at a time. Whether you’re opening your first IRA or looking to roll over an existing account, SouthStar Bank offers personalized guidance and local service to make the process simple and stress-free! Have any questions? Reach out to our IRA experts at 512.384.3948 or IRA@southstarbank.com, and they will be happy to assist!