Once you have established a reliable stream of income, it’s important for you to begin saving for your future. This is an extremely crucial stage, as medical emergencies and other unforeseen events could call for additional funds.
When you enter the pre-retirement stage, it’s necessary for you to consider more than just your financial cushion. You will also need to think about logistical aspects such as where you want to live or whether or not you want to continue working in some form.
The work doesn’t cease once you enter into retirement. You also need to know how to properly manage your wealth. We will help you come up with a plan that ensures your wealth will still benefit you in the future.
Two of the main plan options include IRAs (Individual Retirement Accounts) and 401k plans. IRAs can be divided into two primary categories, traditional and Roth. They are relatively similar in function, acting as retirement savings accounts. And they both provide a variety of tax advantages. Traditional IRAs are tax deductible on state and federal tax returns. While Roth IRAs don’t provide tax breaks on contributions, their earnings and withdrawals are typically tax-free.
The 401k plan, which is managed by employers, allows employees to save a portion of their paychecks and put them towards their retirement fund. With the traditional 401k, you don’t pay taxes on the funds until you retire. Roth 401ks allow you to pay your taxes upfront.
No matter what planning stage you may be in, Womack Investment Advisers can provide you with the guidance you need to take full advantage of the hard work you’ve put in over the years.