For financial success, you have to divide your paycheck between paying for today, playing defense with insurance and playing offense by saving money for when you want to stop working. When you want to stop working, can you or will you be forced too?
Companies are allowed to set up a retirement plan to help you play offense and contribute money into a retirement plan on a tax preferred basis. This could be a 401k, Simple IRA, SEP-IRA or personal IRA.
Essentially, you don’t pay taxes today when you contribute money into a traditional 401k or IRA. This money is allowed to grow and compound without paying taxes until you withdraw the money after age 59 ½. Money is protected by rules and you are responsible for how much you contribute, for how long and where the money is invested.
Some of these plans can also have after tax contributions today and pay no taxes at retirement through a Roth provision.
If you don’t set money aside for yourself, who will?
To some people, 401(k) = Complete Retirement Plan.
They just need some education and coaching. In fact, there are several different kinds of retirement plans, including 401(k)s, IRAs, and SEPs.
In short, planning for retirement is more complicated than a golf swing or the infield fly rule.
Fortunately, Coaching Financial helps both businesses and individuals set up winning strategies for retirement. We’ll find you the most practical plan and administer it at minimum cost so you can avoid complications or headaches. Call us today to start planning your financial future.
“Our coaches understand what it takes to win the financial game and the importance of protecting what you’ve worked so hard for. As you know, teamwork wins championships. Let’s work together to secure your financial future!”
John Gotschall