Lee Law Office assists you with making plans so you can have financial security during your retirement years.
Today, most Americans have only themselves to rely on when it comes to having enough money to see them through their golden years. Guaranteed pensions have become rare and even the future of Social Security is uncertain, plus Social Security benefits are not enough to live on anyway. At the same time as Americans have been receiving less help planning for retirement, life spans have also been increasing, so ever-larger amounts of money have become necessary for retirees. You need to make sure you have savings to see you through and Lee Law Office will help you to craft a plan to ensure that happens.
A Richmond, VA retirement planning lawyer at our firm will offer you guidance on setting retirement goals, achieving those goals through the use of accounts that provide tax breaks and protecting your retirement assets. To find out how Lee Law Office can assist with your personalized retirement planning process, give us a call today. You can also get answers to questions you have about the retirement planning process including:
- When should I create a retirement plan?
- How should I incorporate the use of IRAs in my retirement plan?
- How can a Richmond retirement planning lawyer help me?
When Should You Create a Retirement Plan?
Creating a retirement plan is not something that can wait until your golden years. It is vital that you make a plan when you are young so you can take advantage of compound interest and so you can grow your retirement savings over time.
The earlier in your career that you begin to save money for retirement, the less money you will have to put aside each month in order to save enough to be a financially secure senior. By putting money into a retirement account early, your money will grow quickly because you will have many years of compound interest and will be able to amass a substantial sum even with relatively small contributions.
Investing early also allows you to take full advantage of tax breaks that help you save for your future. You can invest with pre-tax funds in a traditional IRA and a 401(k), or could invest in a Roth IRA to get tax benefits when money is withdrawn. All these types of accounts have annual contribution limits. If you miss a year of contributions, you lose those tax breaks forever. Starting early with your retirement planning allows you to get tax breaks for investing throughout your life and to grow your wealth rapidly by putting the magic of time to work for you.
How Should You Incorporate the Use of IRAs in Your Retirement Plan?
Many people invest in workplace 401(k) accounts to get tax breaks for retirement investments. A 401(k) is often a good option if your employer offers one. A 401(k) is an especially beneficial type of retirement account to invest in if your employer will match your contributions, since you get free money in the form of the employer match.
However, there are also other accounts to consider instead of, or in addition to, a 401(k). A traditional IRA, for example, allows you to invest money each year in a retirement account with pre-tax dollars, just as a 401(k) does. A Roth IRA, on the other hand, allows for you to invest with pre-tax money but grow and withdraw your wealth tax free. Options such as a Simple IRA and Sep-IRA are also available to small business owners and to the self-employed.
Once you have invested enough to earn the employer match in a 401(k), if you have this type of account, you may wish to begin investing in an IRA as you may have more flexibility with what you invest in – and what fees, if any, you will pay –when you invest in a traditional IRA retirement account versus a 401(k).
How can a Richmond Retirement Planning Lawyer Help?
A Richmond retirement planning lawyer will work with you to identify what income you likely will need during retirement and how much you must save to achieve it. Your experienced attorney will also work closely with you to find an appropriate type of tax-advantaged account to use for your retirement investments.
Working with an experienced attorney at Lee Law Office is a good way to ensure that you fully understand the rules associated with using tax-advantaged retirement accounts so you can retire with substantial wealth. To find out more about how we can help, give us a call today.