“Can I retire my 401(k) account while I am working?” This is a frequent question in the world of financial retirement planning. Saving money in a 401(k) retirement plan does offer benefits, but some people find it unfavorable. One challenge which investors may face is a lack of flexibility with their 401(k) account. For instance, if they want to invest their retirement savings, they are often stuck with their company’s plan.
There are many factors to consider when developing a retirement income plan. After all, everyone has different retirement needs and goals, and your plan should reflect your own individualized requirements. Here are some retirement planning fundamentals which will help with your planning process.
A good start to creating a successful retirement plan involves careful analysis. Answer these questions:
Individual retirement eccounts (more formally known as "Individual Retirement Arrangements"), or IRAs, are a method for saving money for retirement that is either tax-free or tax-sheltered (or arranged to minimize tax liability). There are several types of IRAs. Each comes with its own benefits, rules, and contribution limits.
If you set up your IRA through a brokerage firm, you’re able to invest your funds in stocks, bonds, mutual funds, real estate, and various other government-approved asset classes. Let’s cover the different types of IRAs and their fundamentals.
When it comes to tax-advantaged retirement savings accounts, people have many options. The most popular retirement savings accounts are 401(k)s and IRAs. Both accounts are similar in many ways, but they also come with notable differences. It’s important to view them through the lens of retirement planning.
Long-term care applies to people of any age who require help performing the activities of daily living (ADLs), such as bathing, dressing or eating. They may need care because of age, illness, injury, or cognitive disorder. Care may be provided by private homes, assisted-living facilities, adult day-care centers, hospices, or nursing homes.
When you reach 70.5 years old, the IRS requires you to start taking Required Minimum Distributions from your retirement plan account. A Required Minimum Distribution (RMD) is the minimum of what you’re required to withdraw from your retirement plan account on a yearly basis.
Like many of our clients, you probably have an IRA. There’s a real good chance it’s one of the largest financial assets you own – if not the largest one.
Are you approaching retirement? Use these calculators to help plan and create a secure, comfortable financial future. Analyze your 401k, IRA, Roth IRA, 403B, 457, and much more.
Would you like to know if you have enough money to guarantee you never run out of income? We’ll run the numbers for you with 40+ annuity carriers to find out your best income options. Just fill out the form to the right and we’ll start working on it immediately.