What’s the difference between a traditional IRA and a Roth IRA?
If you think you might be in a lower income tax bracket when you retire, consider a traditional IRA. By contributing money that you can deduct from your income tax return, you’ll reduce your taxable income now. When you eventually withdraw money from your IRA during retirement, you may possibly have less income. So, although you’ll still be taxed on those earnings, it will likely be at a lower rate.
If your current income falls within government specified limits, and you expect to be in a higher income tax bracket at retirement, consider a Roth IRA. You will contribute to your account now with money that you‘ve already paid taxes on (after-tax contributions). Your earnings will grow federally tax-free, which should allow them to build faster. When it’s time to withdraw that money in retirement, you’ll typically be free from paying any taxes.
How can annuities help with my retirement plan?
As part of the mix in your retirement planning strategy, annuities may help you achieve a greater level of income stability, so that no matter how long you live, you won’t outlive that stream of income. If the income you receive from an annuity can cover your fixed costs, you may spend your other retirement savings with greater confidence. An income annuity can create guaranteed cash flow. Look at immediate annuities if you need income right away. If you have time, deferred income annuities might suit you better.
How can I prepare my employees for retirement?
Retirement savings plans can help your staff save for the future. Offering a 401(k) plan is one way to make sure your employees build savings, and the contributions employees put in can reduce their taxable income. You can match a certain percentage of your employees’ contributions and help their savings accumulate faster.
How much Social Security benefits can I expect to receive?
You can check online and, based on your actual earnings record, get an estimate of how much Social Security benefits you can expect to receive. 4