Many people dream of a wonderful retirement where they spend time traveling the world, indulging in hobbies, and spending uninterrupted quality time with the people who they love. Unfortunately, expectations sometimes do not match reality. Retirement savings accounts may be too small, healthcare too expensive, and pensions no longer provided.
It is up to you to make sure your retirement dreams come true, and to take full advantage of all available legal tools to make that happen. Northern California Center for Estate Planning & Elder Law can help your dreams to become a reality. The sooner you begin and the younger you are when you create and implement IRA & retirement planning, the easier it will be for you to have a secure retirement. To find out more about the personalized retirement planning assistance that we offer, give us a call at 916-437-3500. Our legal team will also answer all of your questions about retirement planning including:
- When should retirement planning start?
- How are IRAs included in retirement planning?
- How can a Northern California IRA & retirement planning lawyer help me?
When Should Retirement Planning Start?
Retirement planning should start as early as possible. If you begin to save money for your retirement as soon as you begin earning money, you will not need to save nearly as much to end up with a larger nest egg. This is because you benefit from compound interest. You can put your money into investments and the money will work for you, growing to provide you with a secure financial future.
Starting to plan early is also important because many retirement plans that provide tax advantages have annual contribution limits. If you miss investing for a one-year period, you will not ever again get the benefit of putting aside that year’s tax-free retirement contribution. You want the government to help subsidize your retirement as much as possible, so it makes sense to contribute as much as you can to tax-deductible investment accounts each year that you can make contributions.
If you have not started to plan early, it is never too late. It is always better to dive in, whether you are middle aged or even a senior, so you can build up as large a nest egg as possible and have the most security possible. If you are getting a late start, getting the right advice and using tax-advantaged accounts becomes even more important so you can catch up on your savings.
How are IRAs Included in Retirement Planning?
For many people who are making plans to save for retirement, the use of an Individual Retirement Account (IRA) should be an essential part of the planning process. An IRA can be used in addition to a workplace retirement plan like a 401(K), if you have such a plan available. An IRA is also available to people without any type of workplace retirement plan and allows you to get tax breaks that make retirement saving easier.
There are different kinds of IRAs, but the two most common types which are used by individuals who earn wage income are Roth IRAs and traditional IRAs. A traditional IRA lets you take a tax deduction for the amount you invest, which means the government lets you invest with pre-tax funds. This can be a substantial savings.
With a Roth IRA, on the other hand, you invest with after-tax money but the growth and withdrawals from the account are tax free. You need to know both income limits and annual contribution limits to make sure that you are following the rules for IRA investing and that you are making the most strategic choice. An attorney can help.
Other IRAs including a SEP-IRA and a Simple IRA can be used by people with small businesses or self-employment income as investment vehicles. These can make it possible to put aside larger sums of money in tax-advantaged accounts, so if you believe you should be eligible it is definitely worth getting legal advice on what your options are.
How can a Northern California IRA & Retirement Planning Lawyer Help Me?
Northern California Center for Estate Planning & Elder Law offers comprehensive full-service assistance with IRAs and retirement planning to clients in Sacramento, Roseville, Davis and surrounding areas. When you are ready to set goals, manage your money wisely, make smart investments, and learn the rules for tax-advantaged retirement accounts, give us a call at 916-437-3500 or contact us online. Our Northern California IRA & retirement planning lawyers are committed to helping you achieve the financial security you need to fulfill all of your retirement dreams.
