Retirement planning should be one of the most important components of your overall investment plan. Today, “retirement” is often a very long period of time. If you retire at 62, consider the possibility that you may live to 92 – or perhaps 102! Given the medical and healthcare advances of our time, this is not out of the realm of possibilities. When people retired in 1960 or 1980, the common assumption was that they would have to make their money last for 10-15 years. Now, some American retirements will last twice that long – or longer. So it is not simply a question of making your principal last. That is certainly important, but there is also the additional goal of making your retirement money grow.
We offer multiple options tailored to your objectives to plan wisely for retirement:
A traditional individual retirement account (IRA) allows an individual to direct pretax income toward investments that can grow tax deferred. Individuals with this retirement account will not be taxed on capital gains or dividends until the money is withdrawn, presumably at a lower tax rate.
Roth IRAs are similar to Traditional IRAs but they differ in multiple areas including tax deductibility, age and income limitations for contributions, and more. Ask one of our advisors to assess your needs and to see what works best for your particular situation.
401(k) and 403(b) retirement accounts are retirement products available through your employer. If your employer offers a 401(k) or 403(b) plan, you are able to make salary deferral contributions on a post-tax and/or pretax basis while your employer could potentially match a portion of your contribution. Restrictions apply and it is important to consult your company’s plan administrator.