401(k) Plans Still Best
Why invest in a 401(k) plan? First, the savings can be tax-deferred, so more of your savings is invested, and it builds up faster. Second, it is automatic and out-of-reach, which provides discipline to save. Money in a 401(k) that is withdrawn early (before 59 ½) incurs an additional 10% IRS penalty, subject to certain exemptions. That’s a good incentive to leave it in there to build up. Third, and the most powerful advantage, most employer plans offer a matching contribution. It’s a great way to boost your savings with little effort.
Since 401(k) plans play such a major roll in retirement savings, we focus on the individual 401(k) strategy when preparing a one-time Pre-Retirement Plan for a client. This plan is customized to take into account your personal financial needs and goals. It makes sure you avoid the most common problems people make in their plans.
The Pre-Retirement planning process is very straightforward. We do a thorough review of your company’s 401(k) documents and research the funds offered in the plan. We combine your investment philosophy and retirement objectives to give you specific recommendations. This includes the investment amounts and funds to use to achieve your goals. It also includes milestones you can use to stay on-track. Basically, you get a customized plan that you can manage on your own. For those in their 20’s and 30’s, with the proper Pre-Retirement Plan, it can mean the difference in your retirement standard of living, or having to put off retirement for a later time. These plans do not cost thousands of dollars like a comprehensive financial plan. They can start as low as $750 for typical plans that include a single company 401(k) analysis. Call us to set up a complimentary appointment and discuss how you can reach your retirement dreams and sleep at night.