Retirement Planning

Retirement PlanningWhy should you enroll in a retirement plan or contribute to an IRA?

Did you know…

  • That retirement can last for 30 years or more?

  • That a common rule to follow is that a retiree will need up to 80% of his/her annual income today to retire comfortably?

  • That the average benefit amount paid monthly by the Social Security Administration is $1,177?

Advantages

  • Tax on employee and employer contributions is deferred until distributed.

  • Investment gains in the plan are not taxed until distributed.

  • Retirement assets can be carried from one employer to another.

  • Contributions can be made easily through payroll deductions.

  • Saver’s Credit is available.

  • Flexible plan options are available.

  • Better financial security at retirement.

Example of time value of money

Future Retirement Savings Value - Assuming 6% annual return

Monthly Savings

5 years

15 years

20 years

$50

$3,506 $14,614 $23,218

$200

$14,024 $58,456 $92,870

$500

$35,059 $146,136 $232,176

Additional resources:

Publication 4118, Lots of Benefits when you set up an employee retirement plan
Time Value of Money Calculator

Retirement Savings Tips for Individuals
New Employee Savings Tips - Time Is On Your Side

Last modified on Monday, 04 August 2014 21:18
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13681 Newport Avenue

Tustin, California 92780

800.743.9815

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