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Finance

Retirement Planning Basics

There are a lot of people in Charlotte NC who for one reason or another have yet to start thinking about or planning for their retirement. We all know that it’s important to build up some sort of retirement savings in order to allow us to live comfortably and independently once we leave the workforce, but unfortunately, many people really don’t know where to begin.

If you haven’t really begun thinking about investment vehicles as a way to save for your retirement, now is the time. If you’ve been setting aside money in a savings account, that’s great, but the low rate of interest you’ll receive from a conventional savings account won’t yield the kind of return on investment that you’ll get from a 401k, Roth IRA or other retirement planning options.

The idea is to make your money start working for you before you retire and hopefully, continue working for you even years into your retirement and that calls for careful thought and putting a plan of action into place or hiring a fiduciary financial advisor Charlotte NC.

Social Security alone probably won’t cover all of your living expenses after you retire, let alone allow you to live in comfort. Even if you anticipate having to scale back a bit on luxuries once you stop working, trying to live on your Social Security checks probably isn’t going to be a viable option for most people.

If you’re ready to start planning for your future, find out if your employer has a 401k plan or another kind of retirement plan. If they do, sign up and begin contributing as much as possible to this retirement savings account.

It’s one of the easiest ways to begin your retirement savings and since most employers who offer 401k plans provide some kind of matching contributions, you can essentially give yourself a small raise over and above your current wages or salary, with this extra money going into your retirement account. You’ll also be eligible for tax deductions based on your contributions, which gives you another incentive to save for retirement. Currently, you can contribute up to $17,000 per year to a 401k, so it’s easy to begin building your retirement savings in a relatively short time.

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