Building A Secure Future Through Retirement Planning

Planning for retirement is a crucial part of your life and career. Whether you are young – or not so young – you have to be sure to take the proper measures to ensure your financial future. It’s never too late to start, but you have to start now.

The 401(k)

A 401(k) is a great savings tool and a good way to start saving for your retirement, no matter what stage of retirement planning you are in. If your employer offers a 401(k) plan, you can have a pre-determined amount of money automatically withdrawn from your paycheck and deposited in your 401 (k) account.

Most employers have 401 (k) ‘matching’ - where the employer will match every dollar you invest into your 401(k) account with an amount, usually from .50 to $1. Perhaps the best part of investing in a 401(k) account is that you are not charged any taxes on the money until you actually withdraw it as you begin your retirement.

Most 401(k) plans offer first-time homebuyers the option to borrow against their 401(k) for a down payment. However, keep in mind that if you make any withdrawals before retirement for any reason, you will have to pay a penalty of 10% to the IRS. Therefore, you should only borrow against your 401(k) as a last resort.

If You Are Nearing Retirement

If you are nearing retirement, three factors that you need to keep in mind are that you can accrue social security benefits, savings, investments and lastly, pensions after retirement. If you want to take advantage of these, you need to apply for these retirement benefits at least three months in advance. At the same time, you may want to sign up for Medicare, which will help you meet your healthcare expenses.

Evaluate and determine your retirement needs in order to maintain the same standard of living that you have now. Find out if you are entitled to benefits from your employer’s pension or profit sharing plan. Sign up and contribute as much as you can, if your employer offers a tax sheltered savings plan like the 401(k). Keep depositing money into your IRA account, where it can grow, tax-free.

Make financial security your priority though proper strategic planning so that you can retire without worrying that you may not have enough money to last throughout your golden years.

To acquire more information on retirment strategy and planning visit Retirement Planning Resources