Having retirement savings is important because it can help people to retire when they want to and when they feel ready to. Retirement is seen as a time to de-stress and do activities that an individual always wanted to do throughout the work years. Building a retirement savings can seem daunting, but with Wealth CAPS, we help make the process easier.
3 common misunderstandings about retirement savings are:
- Employer sets up a 401(k): Not all jobs offer a
401(k), but the employers that do offer a retirement savings plan usually take out a percentage of the employee’s paycheck for their retirement savings before taxes or after taxes, depending on options offered. Taxes are only applied to the money that is taken out of the 401(k) plan. During the job offer negotiations, an applicant can discuss with their employer about setting up a 401(k) retirement savings plan. - Saving over time: Saving for retirement as early as possible allows for more money to accrue over a larger period of time. Those straight out of high school or college that enter the workforce do not always realize that they should start saving for retirement now. The sooner people start saving the larger the sum of money there will be in order to pay for all the expenditures after retiring. The activities, trips, or future plans would not have to be cut because the worker saved early enough in their lifetime for them.
- Reconsider taking money out of a 401(k): Taking out money from the 401(k) retirement savings plan before retirement can result in heavily taxed money. It is always good to reconsider and weigh all options before taking money out of retirement to cover a current expense. Finding a solution in another money venture may be better than falling short during retirement.
For all financial inquiries, contact Wealth CAPS. Our professional Raleigh financial advisor can assist in the financial planning process. Making the best financial decisions is vital to help create a well-funded substantial retirement. Build a retirement plan with Wealth CAPS by contacting us today.
Wealth CAPS is an independent financial services firm helping individuals create retirement strategies using a variety of investment and insurance products to custom suit their needs and objectives. Investing involves risk, including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Neither the firm nor its agents or representatives may give tax or legal advice. Individuals should consult with a qualified professional for guidance before making any purchasing decisions. Investment advisory services offered through AE Wealth Management, LLC AW03172154