Life’s future eventually becomes our history. Our ability to shape that future is something that needs methodical planning and implementation that happens today. For this you need right retirement planning services in Lake Oswego, USA.

The success of retirement plans is limited to the very commodity we can’t buy. TIME. The time value of money is important to the growth and size of your nest egg. For example, if you placed $4,000.00/year when you were 20 years old, and stopped at the age of 40, the value of the next egg will be about $2,000,000* by age 65. Consequently, if you started to contribute 4k/year at age 40 till 65 years old, you would have half of that.

There are three steps to creating a successful retirements plan:

  • Figure out how much you need to save.
    • Budget (Food, car, house, vacation, etc.)
    • How many years to retirement
    • How many years in retirement
    • Rates – Growth/Inflation
  • Open up an account (see below for options)
  • Setup the process.
    • Auto-draft
      • Paycheck
      • Checking Account

Traditional: An individual retirement account to which you contribute pre-tax or after-tax dollars, and which allows your money to grow tax-deferred. When you make withdrawals after age 59 ½, they are treated as income.

Roth: An individual retirement account allowing a person to set aside after-tax income up to a specified amount each year. Both earnings on the account and withdrawals after age 59 ½ are tax-free.

Rollover: A traditional IRA that is often used by those who have changed jobs or retired and have assets accumulated in their employer-sponsored retirement plan, such as a 401k.

SEP: A simplified employee pension individual retirement arrangement (SEP IRA) is a variation of the individual retirement account used in the United States. SEP IRAs are adopted by business owners to provide retirement benefits for the business owners and their employees.

Simple: A retirement plan that may be established by employers, including self-employed individuals. Simple IRA allows eligible employees to contribute part of their pretax compensation to the plan. This means the tax on the money is deferred until it is distributed.

401k: A retirement savings plan sponsored by an employer. It allows workers to save and invest a piece of their paycheck before taxes are taken out. Taxes aren’t paid until the money is withdrawn from the account.

403b: Also known as a tax-sheltered annuity plan, is a retirement plan for certain employees of public schools, employees of certain code section 501 (c)(3) tax-exempt organizations and certain ministers. A 403b plan allows employees to contribute some of their salary to the plan.

Defined Benefits: A company pension plan in which an employee’s pension payments are calculated according to length of service and the salary they earned at the time of retirement.

A better retirement plan can only be acquired if you go for reputable retirement planning services in Oregon, United States.