Lighthouse Financial: Guidance In Retirement Planning
When we reach retirement age, most of us want to be able to relax and enjoy the thought of not having to work anymore. However, for this to happen, it’s important to plan ahead. Lighthouse Financial can give you the advice and guidance needed to do this. Kenneth Brackett will guide you through the different options available so that you can choose the most appropriate one.
The Importance of Planning
Although you may feel it is too early to start retirement planning, it can be dangerous to simply sit back and postpone it for later. It is important to start retirement planning as early as possible so that in the future you can truly reap the benefits. Most people like to retire as soon as they can and Lighthouse Financial can help you plan for a perfect life post retirement.
Methods of Retirement Planning
Kenneth Brackett and Lighthouse Financial will provide you with information on a number of effective ways in which to plan for your retirement. These include:
- Individual Retirement Accounts (IRAs): These have been specifically designed to help you save for your retirement. There are two main types available and Lighthouse Financial will help you decide which one would be the most appropriate:
- Traditional IRA: This account is tax deferred which means that until you withdraw the money there’s no tax on it. If you withdraw the money before you reach 59.5 years, then, you need to pay a penalty. There are also governmental limits on how much you can put into the account each year and further limitations, if you also have a pension plan through work.
- Roth IRA: Created after the Taxpayer Relief Act of 1997, this is very similar to the traditional IRA. The main difference is that the first amount of money you place into the account is not tax deductible. Any interest you accumulate is not counted as taxable income and there’s no penalty attached to withdrawing money at any time.
- Defined Benefit Plan (DB): Other plans discussed by Ken Brackett include employer sponsored plans. In the DB plan, a set amount of money is paid over a number of months during your retirement.
- Defined Contribution Plan (DC): Here, either you or your employer pays a set amount of money towards your retirement every month. The money can be invested in mutual funds or business stock. How well the market does will dictate what you have after retirement.
- 401(k) Plans: As Lighthouse Financial will tell you, this plan is the most popular employer sponsored plan. Usually, the amount of money contributed by you is matched by your employer. This money and interest is then deferred up to the age of 59.5 years.
- Profit Sharing Plans: In this case, your employer is responsible for all contributions. They decide how much profit they want and you are left with the remainder.
For help in retirement planning, contact Kenneth Brackett and Lighthouse Financial. If you need advice on the best retirement plan option, then, you should seek advice from Kenneth Brackett. He can provide you with all the information you need so that you can make an informed choice. He offers guidance in a number of areas including tax efficiency, wealth transfer and estate planning.