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A Guide To Investing For Retirement

You’ve thought about it, you know you should start saving, but you keep telling yourself that you have time.

You tell yourself that you will think about this confusing matter tomorrow, the next after, the next month or the next year.

Retirement planning—it is only as hard as you make it. Early planning gives you the time to understand the best options of investment, and make it easier. The worst you can do in your retirement planning is to do nothing at all.

Preparedness Is Protection

A 25-year-old who extracts a certain percentage of their annual salary for as retirement investment cannot only save a considerable amount by the time they are 65, but also opt for better money-making strategies along the way.

Compare their situation to a 40-year-old who saves along the same level, and they may not have enough for a fulfilling retirement. Not to mention, the amounts these two parties save do not take into account any raises or decreases in contributions along the way.

In short, the best time to start investing in your retirement is as soon as your income gives you the permission up your savings. There is that, and you can also opt for compound interest tools, letting your money make more money.

Let’s delve into the confusing world of investment abbreviations, and see make them simpler for you.

401(k)s and 403(b)s

A 401(k) is a plan sponsored by your employer, funded through pre-tax payroll deductions. A 403(b) is plan tailored for you if you are employed in anon-profit or an educational institution.

Individual Retirement Account (IRAs)

IRA is an account that can be opened by anyone, regardless of where they work. IRAs are ideal for individuals who do not have access to 401(k). Two-thirds of Americans are not gaining the benefits of 401(k), either because they do not have an employer, or have an employer who does not sponsor 401(k) plans. IRAs can also offer a number of advantages that employer-sponsored retirement plans don’t.

Social Security

You can also tap into Social Security, but the benefits of this scheme may not be enough for a fulfilling retirement, not at the current levels and not at the levels you get by the time you retire.

Employer Match

Employer match is one of the easiest monetary compensations you can receive. If you can access an employer match, try and get the maximum percent available. Not opting for employer match is like being rewarded with a check, and tearing it up instead of cashing it.

It may be tricky to navigate retirement investment alone, but to do so with a financial expert can get you the best options for a comfortable retirement. Specialized in personal and business insurance, Gregg Marcus offers comprehensive retirement planning guidance and related services.

Contact Gregg Marcus today to kick-start your retirement plans!