Retirement planning involves creating a strategy to ensure a desired retired lifestyle. A successful plan will build wealth by maximizing growth and using tax-efficient vehicles, as well as address the issue of leaving assets for heirs. Retirement years can span decades, therefore planning for it is hopefully one of your top priorities. No matter where you are in life, creating and reevaluating your retirement plan is important to us.
Here are some factors you might consider:
- Retirement vehicles for the previous generations may not be available to you
- The power of compounding interest
- Weighing the options based on your tax bracket
There are several ways to save for retirement and you may use one or a combination of them.
- Qualified employer-sponsored plans
- Individual retirement accounts (IRAs)
- Personal savings
- Annuities and insurance
- And more!
Too often, you hear of someone not contributing to their 401(k) because they are confused with their options. You might have switched jobs in the past and forgot to roll over your old 401(k) plans. Others are wary about contributing to their IRAs because they believe the money will be tied up until they reach age 59½. More commonly, people wonder if they should invest in a traditional IRA or a Roth IRA.
With the ever-changing rules and tax laws, it's important to be up to date on the most current information. We would be glad to help you distinguish between these retirement vehicles and determine which ones are suitable for you.