Retirement
Preparing for retirement is one of the most important goals of America today. A retirement plan that enables you to transfer the assets you have accumulated into a lifestyle you are comfortable with is a process you and your McGinn Smith advisor can complete together.
Purpose of Retirement Planning
Individual Retirement Accounts are savings plans that allow an investor to increase the size of their savings for retirement while taking advantage of special tax status.
How IRA's can help you:
- Your investments are potentially tax-deductible.
- You can defer paying taxes on your investment income and gains.
- You can take control of your money that is currently held in a former employer's retirement plan.
IRA Contributions can be made in two ways:
- By moving your money in a former employer's retirement plan, such as a 401 (k), into a new or existing IRA. (IRA Rollover).
- By making annual contributions to a new or existing IRA out of your employment income.
Elements of a good retirement plan
- Provide you with 70 to 90 percent of your current gross income.
- Take into account the obstacles that you may face after retirement.
- Allow you to take advantage of the potential for growth over time.
- Be diversified in its investments, by balancing growth and income with your own tolerance for risk.
- Take advantage of income tax-deferred savings.
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