Most of us are used to living on a regular paycheck, but how do we continue that by taking this lump sum of money and turning it into a regular paycheck for ourselves designed to last the rest of our lives? The earlier you recognize the variables that will shape your retirement planning, the greater the likelihood that you will have the appropriate strategy in place to pursue your long-term objectives.
Put your retirement savings plan into action, it's never too early to get started! To the extent possible, you may want to arrange to have certain amounts taken directly from your paycheck and automatically invested in accounts of your choice [e.g., 401(k) plans, payroll deduction savings]. This arrangement reduces the risk of impulsive or unwise spending that will threaten your savings plan — out of sight, out of mind. IRAs, like employer-sponsored retirement plans, feature tax deferral of earnings. If you are eligible, traditional IRAs may enable you to lower your current taxable income through deductible contributions.
The decision whether to contribute to an IRA, a 401(k), or both is a highly individualized one. We can help you review your options before taking the plunge.
