Saving is vital to ensure a successful retirement. Without the proper knowledge, you could miss out on retirement opportunities to propel you forward in the financial planning game. The tips and facts listed below will help you when planning for your future today.
Your retirement-plan contributions are not locked in until you retire. Although retirement plan contributions are more difficult to access, you can borrow against your 401(k) or 403(b) defined-benefit plan. You will need to pay the borrowed amount back before you leave the company. If your retirement money is in a Roth IRA, you can withdraw contributions at any time without tax or penalty.
According to the IRS, if you have a 401(k) or 403(b) at your place of work, your tax deductions for Traditional IRA contributions may be limited, but not prohibited, depending on your income.
Think Multiple Streams
Savings and investments alone may not be enough to adequately fund your retirement, and you may even need to delay retirement. Those who decide to work longer are able to invest more money, which in turn creates a larger income to live off of when they do retire.
Trying to decide how much to contribute to retirement plans can be tricky, but it is important to plan well to ensure you will have enough money to live comfortably for the duration of your retirement. Calculators can help determine how much you will be able to save if you start saving today.
Even if you wait to save, it is important to take advantage of all chances to catch up or get ahead on retirement planning. Saving and investing as soon as possible allows you to live a lifestyle that you have planned adequately for.
Tackling debt helps you plan for the future. According to Harvard University’s Joint Center for Housing Studies, six out of ten homeowners between the ages of 55 to 64 still owe on a mortgage. Debt is a deterrent for retirement! Make sure that you take care of all debt as soon as possible. Taking care of debt allows you to move extra money over to your investments.
When planning for the future, plan accordingly to ensure that you leave your loved ones with assets and not debts. Decide early what kind of legacy you want to leave for your loved ones. Start planning today.
Take action now to preserve a retirement lifestyle comfortable for you.
To begin your own planning today, contact Mike Gann, Financial Planner, CSA (Certified Senior Advisor), and the team at Advantage Retirement. Call 417-893-7233 or visit our office at 3506 S. Culpepper Circle, Suite B in Springfield, MO 65804.