Why Flagstar Bank for your Retirement Planning Needs?

Section I Why Flagstar Bank for your Retirement Planning Needs? Section I Est. 1987 Member FDIC Page 1

Why Flagstar Bank when saving for retirement? We all understand the importance of saving for retirement. The challenge is overcoming the obstacles that get in our way. That s where Flagstar Bank can help. As a full service bank, we can provide you with savings products and financial tools to help you save for retirement. But more importantly, we take the time to listen to you. Pay Yourself First Have a budget and strive to live by it. It s easier than you may think. At Flagstar Bank, you can use our online banking and easyto-use budgeting tools to help track your income and expenses by category and set savings goals. Set aside funds for short- or intermediate-term goals like a new car. Use tax-advantaged ways to save for things like your children s college education and retirement. Just as we have helped others wrestle with their retirement questions, challenges and goals, we can help craft retirement solutions that work for you. To get started, visit any one of our convenient branches and ask to visit with a Flagstar Bank associate. There s a supportive and caring person who will visit with you and take time to know you and your situation. There s a branch near you. /locations Establish an emergency fund you never know when you might need it. Section I Est. 1987 Member FDIC Page 2

Section II The Importance of Starting Early and Disciplined Saving Section II Est. 1987 Member FDIC Page 3

Start early and stick to a plan. You may not have a big salary right now. Nor a big balance in your checking account. But when you are younger, you have something far more precious time. Although it s never too late to start saving, the sooner the better. Questions to Ask Yourself Today To live the way you d like in your golden years, think about your answers to these questions: When do you plan to retire? The younger you retire, the longer your retirement will be, and the more money you ll need. What lifestyle do you hope to maintain during your retirement years? What rate of growth can you expect from your investments now and during retirement? Do you expect to dip into your principal? If so, you may deplete your retirement savings faster than if you just live off investment earnings. When used wisely, time makes it possible to reach savings goals that may seem impossible now. Retirement planners suggest that you ll need from 60%- to 90% of your current annual income to maintain your current standard of living in retirement. When allowing for inflation and taxes, this may mean accumulating a personal nest egg in excess of a million dollars. Don t let this number overwhelm you. For most of us, it s quite realistic if you have the right mindset and the right financial partner. At Flagstar Bank, we can help put you on the right track. Our licensed bankers and financial consultants can help you evaluate your current progress and suggest ways to more confidently reach your goals. Visit a local branch where we can work with you to build a plan. /locations Section II Est. 1987 Member FDIC Page 4

Section III Savings Products and Tools you Can Use Section III Est. 1987 Member FDIC Page 5

Our products and financial tools can make saving easier. Ways to Boost your Retirement Savings Here are some simple ways to grow your nest egg whether you just started working or you re nearly done. Start today. When your assets generate earnings, and are reinvested to generate their own earnings, your money simply starts working as hard as you do. Contribute to your 401(k). If your employer offers a traditional 401(k) plan, it allows you to contribute pre-tax money, which can be a significant advantage. If you re in the 28% tax bracket and contribute $100 per pay period, your take-home pay drops by only $72. Meet your employer s match. It s essentially free money. Don t leave it on the table. Open an IRA. Aim to increase your retirement contributions up to the maximum allowed in your retirement plans. Automate your savings. Flagstar Bank can help you automatically fund your savings so you never have to think about it. One of the easiest ways you can save for retirement is through an FDIC-insured IRA or Individual Retirement Account. The reason is simple, but perhaps not fully appreciated. A Traditional IRA allows for tax-deferred accumulation until retirement. A Roth IRA allows for tax-free accumulation and withdrawals. Don t get too hung up on the differences. The important thing to know is that these tax savings can make a huge difference in the amount of wealth you ll have for your retirement years. We can help you decide which IRA may be best for you and which IRA savings instruments might best suit your needs. But by far, the most important consideration is how much you save and how regularly you save. To help you, Flagstar Bank makes contributing to your IRA easy with low minimum deposits to open an account and regular, automatic transfers to fund your account. Visit your local branch, and we ll help build a plan that works for you. /locations Section III Est. 1987 Member FDIC Page 6

Section IV Eliminating High-interest Debt, Using Credit Wisely Section IV Est. 1987 Member FDIC Page 7

How to reduce or eliminate high-interest debt. Reduce and Eliminate Credit Card Debt Carrying balances on your credit cards can be costly. Here are ways you can pay down those balances and reduce your dependence on high-interest credit cards: Pay with cash or debit card. You can t reduce balances if you keep spending on credit cards each month. Make a budget. This helps you figure out how much you can devote to paying down credit cards each month. Pay off your highest rate cards first. The higher the interest rate, the more you re paying in interest costs. Transfer balances from highest rate cards to the lowest. But make sure there are no transfer fees that would cost more than the savings. Make the minimum payment on your lower interest cards so that you can make more than the minimum payment on the higher interest cards. Once your highest rate card is paid off, move down the list. Don t stop until they are all paid in full. It s simple math. Debt reduces your ability to effectively save for retirement. Especially if that debt is high-interest credit card debt. But what should you do first pay off balances or start contributing to retirement? If you have an employer-match on a 401(k), contribute what you need to maximize that match. You may also want to build a mini-emergency fund of $1,000 to $2,000 to cover typical emergency expenses. But putting off saving for retirement until you are debt-free can cost you your most valuable asset time. Because of compounding interest, even small contributions to your retirement goals can grow significantly. The goal is to strike a balance between the two. Flagstar can help you develop a plan that works best for your current income, expenses and goals. To know how long it will take to pay off your credit card balances or the impact of interest rates, use our Credit Card calculators at the link below to get a better picture of the real cost of your debt. /calculators Section IV Est. 1987 Member FDIC Page 8

Section V How to Stay on Track for the Long Haul Section V Est. 1987 Member FDIC Page 9

When Life Gets Too Busy for Financial Planning Life gets crazy. When you are busy balancing everything else in your life, sometimes financial planning falls to the wayside. Here are ten quick tips for couples for when life gets hectic. Set priorities and specific goals. Don t assume you and your spouse have the same goals without discussing them. Discuss values. When one person wants to spend now and one wants to save for later, it can be a source of friction. Plan in five-year units. When planning for five-year blocks, you can set both intermediate and long-range goals without feeling you re being deprived. Budget together. Set up a manageable system for your cash flow together. Know where your money is going. Keep records of your spending. Don t assume that because you re both working that you have a lot more to spend. Enough said. Save regularly so you aren t dependent on a second income. It s your life. Live well, retire well. Flagstar Bank realizes that nothing can replace a comprehensive and long-term plan when it comes to your retirement goals. Your plans will also be impacted by your Social Security and Medicare benefits, pensions, insurance policies for disability, life and long-term care and other assets including your home and investments. To design a retirement plan that takes everything into account, it may be time to get all your financial affairs in order. Proper planning will allow you to live the retirement lifestyle you desire. How you handle your personal and financial affairs today will determine what you can do tomorrow. The link below takes you to an entire library of helpful information. These topics can answer questions you have about everything from planning your estate, career transitions, home buying and selling and more. There is also a link that connects you with a Financial Consultant in your area. /planning Who handles the actual paperwork can be a matter of personal preference. Although both of you should practice at it. Don t confuse the task of doing paperwork with the act of financial decision-making. Sit down together and discuss finances at least once a month Section V Est. 1987 Member FDIC Page 10

We can work with you to build a plan At Flagstar Bank, we remain committed to helping you with all your financial goals by crafting products and services that meet your individual needs and connecting you to the right solutions. Stop by your nearby branch and meet with a banker. To find a Flagstar Bank branch, visit /locations. Section V Est. 1987 Member FDIC Page 11