Advisors for Life: Retirement
Last week we mentioned that we would be introducing a short series of blog posts focusing on significant life experiences and how each one can use an accountant’s guidance. So here’s the first one, focusing on your later years.
If you’re thinking about retiring soon, chances are you’ve been planning for this move for quite some time. At least, that’s what we’d hope for you. Planning one’s retirement takes decades of saving and focus, and if you’re in the early stages of planning, give your accountant [or one of the savvy accounting professionals at Broussard Poché] a call soon to plan your strategy. But in the mean time, we’d like to offer a few tips to start thinking about now:
Consider Your Goals
Think about where you’re going to be in the immediate future and long-term. Are you coordinating your investments with your short- and long-term goals? Do you make investments based on how they will help you meet your goals? It sounds like a no-brainer but sometimes it’s as simple as putting pen to paper and mapping it out.
Tax Breaks Make A Difference
This might come as a surprise, but your investment accounts can be much more important than your actual investments. Individual Retirement Accounts (IRAs) and 401(k) plans can help you better develop your big picture retirement plan because they allow your tax-deferred earnings to compound. Plus, when you contribute, you get an annual break on your taxable income.
Earn Income In Retirement
It’s not enough to just stockpile a bunch of money and then use that live. The whole point of investing in planning is to continue generating income after you’ve stopped working. Your accountant can be a resource when it comes to strategic thinking for matters like this.
The bottom line is that the average American spends 20 years in retirement, but fewer than half of us have actually calculated how much we might need to save for it.
But that’s what we’re here for. So give us a call and we can help you start planning today.