Are you dreaming of a retirement spent traveling the world, lying on golden beaches and spending carefree time with the grandchildren? Unfortunately, these things don't come without a cost. Online banking is an easy way to help you manage your money so that you can have the retirement you dream of. See what you know about managing your retirement using online banking while you have a go at this quiz.
The earlier you start planning your retirement, the better your retirement will be.
The interest paid to your savings account will be compounded, increasing your savings simply by passing time in your account. The earlier you start, the more you will end up with.
The 2007 survey performed by the Employee Benefit Research Institute found that only 60% of Americans were saving for retirement and less than 40% had an IRA.
As the population ages with the baby boomers reaching retirement age, the social security funds are being stretched and, if you are dreaming of a retirement somewhere on a nice beach, you probably won't be able to afford it with social security money alone.
Your best chance of a comfortable retirement is to start saving as early as possible.
The Internet allows you to find financial advice and support networks at the click of a button, in addition to giving you the ability to manage your accounts online.
The biggest perk to online banking is convenience. You can do it anytime and anywhere, as long as you have Internet access.
A retirement calculator helps you to work out how much you need to save in order to meet your retirement savings goal.
The main difference between a 401(k) and an IRA is that your employer opens a 401(k) on your behalf but you must open an IRA yourself.
A stockbroker will combine your funds with other people's funds to create a mutual investment which will allow you to diversify your investment.
Money invested in an index fund most closely follows market trends, as the money is split to buy shares in a broad range of stocks across the market.
There are fewer fees when investing in index funds, as the money isn't actively managed; rather it is left to follow the performance of the market.
Having a checking account online allows you to manage your funds and track your spending from the comfort of your home, so it is easier to stay on top of your money and keep to your budget.
A good online banking system will allow you to transfer you funds into an index fund, removing the need for a stockbroker. Alternatively, you can trade online independently on one of the many online trading Web sites, such as E*trade or Scottrade.
Hackers regularly target internet banking sites. However, in the rare event that your account is accessed and money is stolen, the funds will most likely be insured by your bank.
Thieves are most likely to get your login details from you. They may do this in the form of a scam email asking you to verify information or even just by searching your garbage for documents with your personal details and using it to hack into your account.
If you see any irregular transactions on your bank account, follow it up right away and make sure it isn't a thief enjoying life on your account. Spotting a hacker early can prevent further damage and allow pending transactions to be reversed.
Employers may offer to match your 401(k) savings as an employment benefit, meaning you pay less tax and increase your retirement savings.
If you get an e-mail requesting verification of personal details, including your password, do not open it. Such an e-mail is very likely to be a scam. Banks never request sensitive information by e-mail.
Hackers can use viruses to access your computer or record your keystrokes in an attempt to steal your online banking login information. Updating your antivirus software is an important way of preventing these attacks.