It is crucial to start planning for retirement as soon as possible. The longer you ignore it, the more money you’ll need to contribute to achieve a comfortable income during retirement. People are now living 20 to 30 years past retirement. The number one concern of people who are retiring is that they will outlive their income. Care Financial is here to help you with retirement planning strategies that will work for you.
Care Financial is here to help you create and navigate a custom retirement strategy that works for you. Give us a call to schedule your free consultation today.
A traditional IRA is very similar to a 401(k). The biggest difference is how much money that you are allowed to contribute. IRAs are more accessible and almost anyone of working age can open one. An IRA is not employer-sponsored, so there will be no sort of employer contributions.
A 401(k) plan is an employer-established plan that allows eligible employees to make contributions to a retirement account. This can be done pre-tax or post-tax. Some employers will also match your contributions.
A Roth IRA is a retirement account that you fund post-tax, meaning you will not be able to deduct your contributions on your tax returns. If you expect that your tax rate will be higher during retirement, you may want to consider a Roth IRA.