Its tax time (http://www.irs.gov/) and everyone is either hoping or expecting some kind of return to put back into their pockets. The question is – What should I do with my tax return? The answer is simple – Invest in either a money market account or an IRA. It’s never too early or too late to begin a savings plan that will allow you to have funds available for retirement and also for an unforeseen emergency.

Below, I have added in some explanations of both money market accounts and also IRA’s along with several links to calculators that can help you see for yourself how investing will add to your capital.

Money Market Funds are mutual funds that invest in short-term securities. If you are looking for an investment vehicle that may offer less risk than stocks, a Money Market Fund may be the right choice.

Features of Money Market Funds:
• Yields may be higher than other low-risk securities
• Most offer low initial investment
• Fixed Net Asset Value (NAV) of $1 per share
• Since they offer higher liquidity, you can use them for short-term cash purposes (most offer check-writing privileges)
• Cost effective to maintain

A MORE IN DEPTH DESCRIPTION:

A money market fund is a type of mutual fund that is required by law to invest in low-risk securities. These funds have relatively low risks compared to other mutual funds and pay dividends that generally reflect short-term interest rates. Unlike a "money market deposit account" at a bank, money market funds are not federally insured.

Money market funds typically invest in government securities, certificates of deposits, commercial paper of companies, and other highly liquid and low-risk securities. They attempt to keep their net asset value (NAV) at a constant $1.00 per share—only the dividend yield goes up and down. But a money market’s per share NAV may fall below $1.00 if the investments perform poorly. While investor losses in money market funds have been rare, they are possible.

Before investing in a money market fund, you should carefully read all of the fund’s available information, including its prospectus, or profile if the fund has one, and its most recent shareholder report.

Money market funds are regulated primarily under the Investment Company Act of 1940 and the rules adopted under that Act, particularly Rule 2a-7 under the Act.
http://www.sec.gov/answers/mfmmkt.htm

Whatever your financial plans for the future may be, your retirement portfolio can be enhanced by an IRA savings plan. IRAs come in two categories – Traditional and Roth. Most IRAs can provide you with unique, tax-advantaged benefits, depending on which type you select.
Compare Traditional and Roth IRAs

IRA Accounts and Descriptions

IRA Rollovers
If you are leaving or have recently left a previous employer and would like to talk with an investment professional about rolling over your retirement savings into an IRA, we’ll make your rollover process quick and easy.

SEP IRAs
If you are a small business owner interested in opening retirement plans for your employees, we can help. A registered investment professional will talk with you about your Simplified Employee Pension (SEP) IRA choices.
Learn More About IRAs:
http://www.rbfcu.org/NB/html/Investments/IRAs.htm

• IRA Contribution Deadlines
• IRA Contribution Rules
• IRAs: Roth IRA Eligibility Rules
• IRAs: Converting to a Roth IRA
• IRAs: Age 70 1/2 Required Minimum Distributions
• IRAs: Roth IRAs for Young People
CALCULATORS TO HELP YOU DISCERN YOUR INVESTMENT RETURN

If unable to click on the sentence..try this link
http://www.rbfcu.org/NB/html/Reference/Calculators_Retirement.htm

Retirement
How will retirement impact my living expenses?
How much will I need to save for retirement?
Are my current retirement savings sufficient?
Social Security retirement income estimator
How does inflation impact retirement income needs?
I'm retired, how long will my savings last?
When should I begin saving for retirement?
Should I convert discretionary expenses to savings?
How much retirement income may my 401(k) provide?
Compare Roth 401(k) to Traditional 401(k)
Compare 72(t) Early Distribution Alternatives
Compare Roth 401(k) to Traditional 401(k) Advanced

I HOPE THIS IS HELPFUL TO YOU ALL AND THAT IT SHOWS YOU THAT EVEN A LITTLE SAVINGS CAN GO A LONG WAY!

All links provided through courtesy by Randolph Brooks Federal Credit Union