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Retirement Planning
Retirement is one of the most important life events many of us will ever experience. From both a personal and financial perspective, realizing a comfortable retirement is an extensive process that takes sensible planning and years of persistence. Even once it is reached, managing your retirement is an ongoing responsibility that lasts throughout your life.
FACTS:
Fewer than half of American have calculated how much they need to save for retirement.
In 2014, 30% of private industry workers with access to a defined contribution plan
such as 401k plan did not participate
The average American spends roughly 20-30 years in retirement.
It's never too early or too late to start thinking about your retirement planning. Your current income, retirement saving, and the
age you plan to retire are just some factors to consider. It can feel overwhelming, but it doesn't have to be. We can help you
answer your retirement questions.
How Much Do I Need to Retire?
The average person leaving the a full-time job at age 65 can reasonably expect to spend 20 to 30 years or more in retirement. We recommend that you speak with a financial professional for more detailed information. We can help you estimate how much will
need to retire.
What Is The Retirement age for Social Security?
You can start receiving Social Security retirement benefits when you turn age 62. However, if you start receiving your benefits before your full retirement age, your benefits will be reduced based on when you start. If you were born between 1943-1954, your full retirement age is 66. If you were born in 1960 or later, your full retirement age is 67.
IRA
An individual retirement account (IRA) allows you to save money for your retirement in a tax-advantaged way. If You're like most people, one of your most valuable assets you have is your earning power. An IRA can let you put that asset to work efficiently and effectively to give you added peace of mind during your retirement years. It would be advantageous to start now for a better retirement life later.
The three main types of IRAs each have different tax advantages:
Traditional IRA- You make contributions with money you may be able to deduct on your tax return, and any earnings can potentially grow
tax-deferred until you withdraw them in retirement. Usually at a lower tax bracket than in pre-retirement, so tax-deferral means the money may be taxed at a lower rate.
Roth IRA-You make contributions with the money you've already paid taxes on (after-tax), and your money may potentially grow tax-free,
with tax-free withdrawals in retirement.
Rollover IRA- a traditional IRA intended for money "rolled Over" from a qualified plan. Rollovers involve moving assets from an
employer-sponsored plan, such as a 401(k) into an IRA.
SEP-IRA- Is a type of traditional IRA for self-employed- individuals or small business owners. (SEP ) stands for (Simplified Employer Pension.) Any business owner with one or more employees, can open a SEP-IRA. Contributions, which are tax-deducible for the business or individual,
go into a traditional IRA held in the employee's name . Employees of the business cannot contribute- the employer does. Like a traditional IRA,
the money in the SEP-IRA is not taxable until retirement.
IRAs
Annuities- Allow individuals to deposit money (premiums) with an insurance company that can earn interest and grow on a taxed-deferred basis with the agreement that the insurance company will then provide a series of payments back to the individual at regular intervals.
People typically purchase annuities to provide or supplement retirement income they receive from Social Security, pension benefits and investments. You can convert your annuity into a steam of income that can be paid over a fixed period of time or for your lifetime.
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