Did you know that fewer than half of Americans have calculated how much they need to save for retirement? In 2014, 30 percent of private industry workers with access to a defined contribution plan (such as a 401(k) plan) did not participate. Meanwhile the average American spends roughly 20 years in retirement. Putting money away for retirement is a habit we can all live with. Saving Matters! Retirement Planning is important. Here are a few tips to help you plan for retirement.
1.) Start saving and stick to your goals.
If you’re not saving it is time to start. Start with a small amount and increase it when you can. Something is always better than nothing.
2.) Contribute to your company’s retirement plan.
If your company offers a retirement savings plan utilize it. If you can contribute the maximum amount your taxes may be lower and your company may kick in more. Automatic deductions make it easy. Always take advantage of match programs when you can. If you own your own business there are savings plans that can be set up for you as well.
3.) Don’t touch your retirement savings.
Occasionally when times get rocky people reach into their 401k to help cover every day expenses. If you withdraw your retirement savings now you will be losing tax benefits and also facing penalties.
4.) Put money into an IRA.
You can put up to $5,500 a year into an Individual Retirement Account (IRA). You can contribute even more if you are 50 or older. You can also start with much less. IRAs also provide tax advantages.
When you open an IRA, you have two options – a traditional IRA or a Roth IRA. The tax treatment of your contributions and withdrawals will depend on which option you select.
5.) Consult a financial adviser.
Although there are many ways to plan for retirement on your own, it is always wise to consult with an expert on how you can maximize your financial endurance and have peace of mind. You should be planning your retirement now. For more information on our retirement planning services at PBI Insurance, call today. We have experts that are happy to assist you accomplish your financial goals.
We look forward to working with you soon!