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No matter your age, it’s never too early to be thinking about your retirement planning in Greenville, SC. Even if you’re just old enough to drive, forward thinking about putting money aside for future investments or for making your twilight years more comfortable is the best thing you can do. Many people start their first jobs between the ages of 16 and 20, but according to the Bureau of Labor Statistics, that will only be the first of 12-15 jobs they may hold before the age of 40. The number of jobs one holds in the future is expected to grow beyond 15 as well! But there’s hope! As long as you’re smart with your savings and investments, you might be able to retire early, should you wish. Imagine how nice an early retirement could be in your later years. Rather than spending your time at an office job, you could be traveling to see all the world has to offer. You could start every morning with a round of golf and end every evening at the movies or out at dinner with friends. Smart financial planning early could set you up for a very, very comfortable time later on in life. Here are three ways the right planning can get you ready for your lengthy retirement. - The 401(k) – The 401(k) plan has been implemented by nearly every for-profit company. It’s an easy way to divert pretax money deducted from your paychecks into a separate fund. If you made enough to do so, you could put $18,000 of your pretax income into this plan every year. If you’re over the age of 50, the limit is $24,000. The benefit? That money isn’t going anywhere even if you change jobs. The ability to simply roll your 401(k) benefits over into your new job makes this a really enticing way to save as you never touch the money yourself before it’s already been put into the account.
- SEP IRA – These acronyms stand for Simplified Employee Pension and Individual Retirement Arrangement, respectively. These kinds of accounts are mostly used by people who are either self-employed or run a small business. If you are the employer, you are able to contribute up to $53,000 or 25% of your income, whichever is less. If the employer also has employees helping at the business, the employer is required to contribute to their accounts if they meet certain requirements.
- Roth IRA – One of the more lucrative financial plans as it comes with no tax penalties should you decide to withdraw the money after the age of 59 ½. The money put into the Roth IRA is after-tax dollars, and you get no tax deduction for the contribution, but the money you earn on interest is tax free. You’re able to withdraw your contributed amount at any time without any penalties, but you’re not allowed to withdraw any of the interest earnings without penalties or extra fees.
So if you’re thinking about doing retirement planning in Greenville, SC, then give these financial plans a look. Carefully weigh each plan against the others and figure out, based on your current financial situation, what plan will work best for you and your loved ones in the long run. Will it be the tax penalties that wave you off of one plan? Will it be the pre- or after-tax benefits that will ultimately get you to your goal of golfing in the mornings faster? These are only three types of investing plans available, but talking to a retirement planner may find you taking another route more suited for your lifestyle now or for the one you want to have later.
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