Many of the Fortune 500 employees and retirees we talk to have the same sentiment when it comes to retirement, it's too insurmountable to handle. While planning for retirement might sound like an insurmountable task, it really isn’t that hard. The first step is getting started. Saving, investing, and planning for retirement are some of the most important things that you can do for your financial peace of mind. However, you might have lots of questions about some of the finer points of retirement planning. The single most important thing you need to do is start saving.
It is never too early or too late to save money. Financial peace of mind begins with a commitment to consistently set aside a portion of your income. It’s not complicated, it just takes a little discipline. So get started today and commit to saving at least 1% to 10% of your income monthly. If you can afford to save more, set aside 15% to 20%. The first step is to develop the habit of saving. Save first. Spend what is left. Most people have it backward. They spend first and save what is left. Sadly, what is often left is zero and sometimes less than zero. Develop the habit today. Save now.
The next step is to decide where to put your retirement savings. Investing is historically the best way to grow your savings over time. It also comes with great tax advantages.
Most people will normally save their retirement money in one or more of the following accounts:
A 401k is typically offered through Fortune 500. Money is invested before taxes and it is deducted directly from your paycheck.
A traditional IRA is similar to a 401k, but it is set up on your own, not through your employer, and also uses before-tax dollars.
Then there is a Roth IRA; you invest your money using after-tax savings.
Taking advantage of these retirement accounts, you can put your savings to work using a mix of investments such as stocks, bonds, annuities, money markets, ETFs, and mutual funds.
If you have any questions about your employer-sponsored 401(k) plan, you can contact your HR department.
So which type of retirement account is best for Fortune 500 employees and retirees, and where should you invest your money? That’s a question with an answer that is as unique as you are.
It depends upon many factors such as:
The Retirement Group is a nation-wide group of financial advisors who work together as a team.
We focus entirely on retirement planning and the design of retirement portfolios for transitioning corporate employees. Each representative of the group has been hand selected by The Retirement Group in select cities of the United States. Each advisor was selected based on their pension expertise, experience in financial planning, and portfolio construction knowledge.
TRG takes a teamwork approach in providing the best possible solutions for our clients’ concerns. The Team has a conservative investment philosophy and diversifies client portfolios with laddered bonds, CDs, mutual funds, ETFs, Annuities, Stocks and other investments to help achieve their goals. The team addresses Retirement, Pension, Tax, Asset Allocation, Estate, and Elder Care issues. This document utilizes various research tools and techniques. A variety of assumptions and judgmental elements are inevitably inherent in any attempt to estimate future results and, consequently, such results should be viewed as tentative estimations. Changes in the law, investment climate, interest rates, and personal circumstances will have profound effects on both the accuracy of our estimations and the suitability of our recommendations. The need for ongoing sensitivity to change and for constant re-examination and alteration of the plan is thus apparent.
Therefore, we encourage you to have your plan updated a few months before your potential retirement date as well as an annual review. It should be emphasized that neither The Retirement Group, LLC nor any of its employees can engage in the practice of law or accounting and that nothing in this document should be taken as an effort to do so. We look forward to working with tax and/or legal professionals you may select to discuss the relevant ramifications of our recommendations.
Throughout your retirement years we will continue to update you on issues affecting your retirement through our complimentary and proprietary newsletters, workshops and regular updates. You may always reach us at (800) 900-5867.
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