What is retirement? Is it you becoming older enough to quit working at job? No, Maybe not. Most of the people in this world take retirement as a very serious issue and get tensed at mere thought of leaving the job. This is simply because they do not map their retirement earlier. A well planned retirement should be stress free and bring an opportunity for oneself to enjoy the rest of the life peacefully doing whatever he/she desires to do. Of course an unplanned retirement would bring up scarcity of funds with it causing a lot of trouble to you and your loved ones.
Planning of retirement
One should plan his/her retirement as early as possible. But this can become really perplexing task as there are lots of figures involved in the calculation of ideal retirement. So, for this one can opt for the retirement services which can facilitate you in drafting out a retirement plan for you so that your retirement does not bring any fiscal burden with it.
Types of retirement plans
There are loads of plans directed to suit each and every individual’s state in order to frame out a perfect retirement plan for him/her. Some of the most commonly known retirement plans offered by many leading retirement services in USA are as follows:
- IRA (Individual Retirement Account) – This type of retirement plan is an account which is deferred of any tax on annual savings you do. The taxes are deducted on the withdrawal amount at retirement. If your work place is void of 401(k) retirement account then you are also eligible to deduct IRA contributions on income tax return annually.
- Defined Benefit Pension Plan – A very old and one of the most popular plans for retirement. This plan fixes a monthly pay for the retired person according to the compensation at work and amount of time invested in the plan.
- Defined Contribution Plan – As can be guessed from the name of this retirement plan, the amount remunerated monthly after retirement of person totally depends on the contribution made towards this plan on monthly basis when the person was working.
- Keogh plan – This type of plan is referred by retirement services to the self employed individuals. The contributions done in this plan can be used by the person paying to invest in mutual funds, stocks or bonds. The contributions are always tax deductible in such type of investment plans.
- Roth IRA – Almost similar to the IRA retirement plan with the difference on tax deduction. The withdrawal of money after the retirement is void of any tax deduction.
- 401(k) plans – These are for the employees of a company where the contributions made towards the retirement account are free of any tax. However due to unavailability of tax deduction huge penalties can be imposed on an individual if he withdraws the amount which is premature. Option of after tax or pre-tax deferment contribution is available.
So, it is very much evident that choosing retirement plan can be quite bewildering without any expert advice.
How to choose expert retirement services?
Leave aside choosing retirement plan; one might even get confused while picking a service offering retirement counselling and expert services related to tax and loans. Several things that should be kept in mind while choosing an expert service to plan out your retirement are as follows:
- It is not only important that your retirement is blessed with financial stability. The service helping you to plan your retirement should invest your money for maximum returns at retirement.
- The services must have prior experience in the field. It is advisable to take advice on your retirement with services that are strongly rooted in the market.
- Do your own research. It is very important that you know what you are going to do with your investments. Listening blindly to the retirement services is never a good option no matter how much reliable the service is.
Author’s Bio: Peter Vincent is US based expert on finance and loaning procedures. He is a guest writer and lecturer on managing funds topic. His know-how and range of knowledge on loaning and retirement services is beyond description.