Rhode Island Chronicle

Financial Advice for Pre-Retirement According to RealtimeCampaign.com

 Breaking News
  • No posts were found

Financial Advice for Pre-Retirement According to RealtimeCampaign.com

September 15
04:24 2020
Financial Advice for Pre-Retirement According to RealtimeCampaign.com

Anyone who is between the ages of about 55 and 64 probably has many questions about how to invest their savings in preparation for retirement. This concern is not unusual, since it’s in this age span that most people consider their last-ditch effort to prepare for their post-working life. Fortunately, this is also a good time to take corrective action for those times in the past when money concerns were not a priority.

The good news in this is that all is not lost when it comes to retirement preparation, even at this late stage. It is important to save for retirement, but all is not lost even at the immediate pre-retirement ages. Just click here for more info. In the meantime, what follows are some excellent tips to get your retirement planning back on track. According to realtimecampaign.com, find a good Retirement Planning Guide for more specific help,

Plan to Max Your 401(k) Contribution

If your employer offers a 401(k) or similar plans such as a 403(b) or a 457, and you’re not funding it to the max, do so. These plans are not only easy to invest in, but they are also automatic. Not only that, but the taxes on anything you contribute are deferred unless you withdraw money from the fund. More information about these planning tools can be found at Money Talks News.

Rethink 401(k) Allocations

Conventional wisdom tells us to be more conservative with our investing as we get older. This is because, as we grow older, there is less time to recover from losses. And, if stock prices take a hit, we might be forced to sell at a loss.

Conservative investing is a matter of nerve, not to mention personal preference. In any event, don’t dump all your money into one form of investment, especially when it comes to stocks and bonds. This is because stocks will still provide growth potential while bonds do not. This point is to remain diversified.

Consider an IRA

If you don’t have the option of taking a 401(k) at work, or you have already maxed it out, consider investing in an individual retirement account, or an IRA. The maximum you can contribute is $6,000, plus another $1,000 if you are fifty or older. 

Determine What the Future Holds

Before anyone retires, they should have a clear and accurate financial picture of what they will have to retire. Fortunately, by the time you are 55 or in your early 60s, you should have a good idea of what you will have for financial resources and what you will need for your retirement.  

Leave Well Enough Alone

After you reach the age of fifty-nine and a half there are specific allowances provided by law for accessing your savings plans without penalties. Unfortunately, this offers a great temptation for those who would use the money for other things. As tempting as this might be, try not to do it.  

Unless you find yourself in a particularly sticky situation and need the cash, leave your savings alone. You will be glad you did. If you really must use the money, make sure you understand what penalties you will face as a result.

Don’t Forget Taxes

As tempting to think about all that money that will be available to you at retirement, don’t forget that not all of the money is yours. Some of it must remain available to pay taxes. Depending on when you withdraw the money, the IRS will be right there to collect their money. In many cases, people who decide to withdraw their cash maintain another more tax-friendly retirement account.  These tips are, for the most part, time-honored, but you should consult with a financial planning professional to make more exacting plans.

Media Contact
Company Name: Realtimecampaign.com
Contact Person: Media Relations
Email: Send Email
Phone: 407-875-1833
Country: United States
Website: Realtimecampaign.com