Retirement planning involves setting aside money for all your financial decisions now so you don’t have to worry about your lifestyle when you stop working. When planning to make these decisions think of how you can enjoy a comfortable and worry-free life when you are not working.
Having a retirement plan is the last thing on everyone’s mind but when you pitch something aside steadily and even with small contributions, you can have a good savings for retirement.
You can set up retirement saving in several ways, such as with an employer sponsored plan, social security, individual retirement account, pension plans, investments, health saving accounts, annuities…the list goes on.
You an start by asking your employer if they offer retirement plans such as 401(K), 403 (B) for non profit employers, Simple e, American funds, these are all ways you can contribute a portion from your salary.
Most employers will match the retirement plan based on your contribution and it can grow rapidly without you worrying about it.
Many of you have heard the term Social Security benefits. This is a government program that provides monthly income to retirees. The amount you receive is based on the amount of your average earning and when you start receiving the benefits.
Individual Retirement Accounts help you save and are typically like a savings account but with tax advantages. Many of you know them as IRAs and there are two types of IRA, Roth IRA and Traditional IRA.
Investments such as stocks and bonds or mutual funds grow over time. Its important to start these earlier as they typically take time to grow and if you start earlier, you can grow more.
Real Estate is always looked as an opportunity of investment but many never see it for retirement. Real Estate can offer rental income and can be utilized to cash it out and use funds for a better investment.
An important part of planning for retirement is also to have a savings account. This will help when there is a emergent need for expense. This way, safety net can be the savings account and will prevent you from pulling out from your retirement savings.
Setting up retirement plans or understanding what is needed when you retire can seem complicated. Our financial advisors, at Karstens Wealth located in Hinsdale and Oak Brook can offer exceptional services in explaining retirement planning based on your individual needs and helping you understand the steps for your retirement planning. We use cutting edge technology and clients’ needs in exploring, offering than implementing best solutions.