There are several options for retirement planning, including:
401(k) or employer-sponsored retirement plan: Many employers offer 401(k) plans, which allow employees to contribute a portion of their salary to a tax-deferred investment account. Employers may also match a portion of employee contributions.
Individual Retirement Account (IRA): IRAs are personal savings plans that offer tax benefits for retirement savings. There are two main types of IRAs: traditional and Roth. Traditional IRAs offer a tax deduction for contributions, while Roth IRA contributions are made with after-tax dollars and grow tax-free.
Pension plan: Some employers offer pension plans, which provide a steady stream of income during retirement.
Social Security: Social Security is a government-funded program that provides retirement, disability, and survivor benefits.
Investing in stocks, bonds, and other assets: This can be done through a brokerage account.
The best time to plan for retirement is as early as possible. The earlier you start saving and investing for retirement, the more time your money has to grow and compound. Additionally, starting to plan early allows you to take advantage of tax-advantaged retirement savings accounts such as 401(k)s and IRAs, and to potentially benefit from employer matching contributions. Furthermore, by starting early, you can also adjust your savings and investment strategies as needed to help ensure you have enough money to last throughout retirement.
It's never too late to start saving for retirement, but the earlier you start, the better positioned you'll be to achieve your retirement goals. It's important to consult with a financial advisor to determine the best options for your specific situation.
For more information or to discuss your specific situation with a qualified advisor, email us at info@copawealthstrategies.com or call us at (503) 217-4150.