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Planning for your retirement is one of life's most important tasks. The average American life expectancy is 78.89 years, and the average retirement age is 62. So you'll want to ensure you have financial freedom in your retirement years. Investment planning is critical for meeting medical expenses, daily living costs, and sudden emergencies. However, many Americans are uncertain about investment planning for retirement.
Five statistics on retirement planning in the United States:
Investment planning is complicated. That's reflected in the amount of Americans — including Americans over 35 — without retirement savings. However, with the help of an asset manager, investment planning can be much easier.
First, you need to know your intended retirement age. You should remember that the younger you begin investing, the more time you'll have to grow your investments. As a result, you can achieve greater financial freedom for your retirement years.
Once you've decided your retirement age and how much money you need for retirement, you can begin investment planning.
Savings are essential for your retirement. However, where you invest your savings is just as significant. At this point, it's an excellent time to hire an investment advisor to help you. An investment advisor has the knowledge to guide you towards the best investments. In turn, you can maximize your returns.
Here are some of the most popular options:
401(k) plans allow your employer to match your investment up to a specific amount. For example, if you contribute 5% of your annual earnings to your retirement plan, your employer could match this. Millions of Americans depend on their 401(k) retirement plan for their retirement years.
A significant benefit of a 401(k) plan is higher rates than savings accounts. What's more, there's no income tax when you withdraw from a 401(k) plan. In most circumstances, you can't withdraw your 401(k) until you're 59½. Many fees are associated with cashing out your 401(k) when you're not close to retirement age. That's why it's best to consider other options.
A popular option is a 401(k) rollover. You can transfer your funds from a 401(k) employer-sponsored plan to a new 401(k) plan or an individual IRA plan. Benefits include possibly lower account fees, a more diverse investment selection, the potential to open a Roth account, estate planning advantages, and cash incentives from brokers. 401(k) rollovers have many rules, and that's why it's sensible to speak with an investment advisor.
Risk is a critical factor when deciding on your retirement investments. When you're young, it's an excellent time to invest more aggressively. In contrast, it's wise to invest conservatively when you're older. If you're planning retirement investments, an investment advisor is essential. You'll need to diversify your portfolio to minimize risk, and an investment advisor is perfect for that.
The best investments if you're looking to pursue growth:
The best investments if you're looking to generate income:
Investment planning isn't straightforward. You probably have a family, a career, and precious little time on your hands. Nevertheless, an investment advisor will advise you on the best way to invest your savings. Investing in individual stocks, mutual funds, and annuities requires research, and there's also an element of risk involved.
But when you hire an investment advisor to handle your investment management, you'll gain advice on tax, retirement planning, wealth management, and investment management from industry specialists.
We offer a personalized, hands-on service to educate you on investment planning for retirement.