The process of selecting a retirement plan can be a daunting task, often resulting in years of procrastination. However, the sooner you have a retirement strategy in place, the sooner you can feel comfortable knowing things will be taken care of in your later years. In addition, the sooner you start saving, the more interest you will earn and the less money you will need to save.
Retirement solutions will differ from one person to the next. However, your goal should be to find a solution that not only meets your expected needs, but plans for any unexpected events as well. For example, if only one spouse is working and saving for retirement, a plan should be put in place to ensure the other spouse is financially stable should anything happen to the family breadwinner. This includes ensuring you have a good life insurance policy in place should the need arise.
Take Advantage of Employer-based Plans
The most convenient and possibly the best retirement solution is an employer plan. Many companies provide their full time or salaried staff with a retirement account. These are tax-advantaged plans thanks to the Internal Revenue Service. Many employers offer 401k retirement plans managed by third-party investment companies. In some cases, employers also contribute to them. Oftentimes employers will also provide life insurance policies to take advantage of. It’s a good idea to enroll in one of these plans which allow your life insurance fees to be deducted straight from your pay-check. If your employer does not have a life insurance option, view our affordable life insurance plans.
Individual Retirement Plans
An Individual Retirement Account (IRA) along with the Roth are tax-advantaged plans that are not required to be opened under your employer. More importantly, they provide you with the ability to put aside money for retirement that is a tax deduction for you. Other forms of retirement accounts exist that may be beneficial to those who own their own business or work for non-profit organizations. These accounts allow you to build a retirement account over time, with tax advantages both now and later. It is important to realize that most retirement accounts limit your ability to use those funds immediately, although you may be able to borrow against your funds or just cash out to access money.
Unique Retirement Strategies
If you are looking for retirement savings to put towards other savings tools, there are options available. Here are a few ideas to get started.