Posted by: Garcia & Cuadra, PA | May 20, 2015

What You Need To Know About Retirement Planning

Retirement PlanningStarting to think about retirement planning is not an exciting subject to discuss. With the gradual increase of people returning to work from unemployment in the Tampa area, individuals will need to start recognizing their potential for saving for the golden years. Here are some tips that should help you move along in this process.

How Much Is Too Much?

Many employers have ditched the standard company pension and are relying on other sources to have their employees to save for old age. Some accounts include 401k, 403b, Roth and traditional IRAs, and other savings accounts offered by your employer. If you’re between the ages of 20-30, now is the best time to start saving for the future. You can easily put away 20 to 40 dollars every pay period into an account and watch those savings grow. This can be very beneficial for your retirement planning, if any employer in Tampa offers a certain percentage for matching. This is free money that your job is giving you, so take advantage of it as soon as possible. From the moment you land that first job, it is ideal that folks should invest about 10% of their income toward retirement.

Age and Restrictions

What does your goal toward your withdrawal date look like? Whether you are planning to retire in 20 or 30 years, it is always important to look at your target date and how much to start saving now, instead of playing catch up later on. There are important factors regarding your retirement age benefits and the amount being collected, especially in the Tampa Bay area. Currently, if a person was born after 1960, that persons retiring age will be 67. You can delay this event by a couple of years, but there will be no more gain after age 70 in terms of collecting additional money.

A big negative is that you should never touch any long-term retirement planning accounts at any time. Life happens and there is nothing we can do about it. If you are in dire need of monetary funds, it is advised that you should not take anything from your investment. This will cause penalties if you’re not at least 59 ½ and taxing the amount as ordinary income.

Garcia & Cuadra

At Garcia & Cuadra P.A. in Tampa, their trained staff will tend to the personal needs for the client. This will include forecasting for the future when individuals leave their present company. Step by step, the accounting firm has a dedicated team to allocate your dollars of retirement planning accounts, informing stakeholders of what the employer offers, and long term goals to satisfy the clients’ needs.

For more information regarding the road to planning your future, call Garcia & Cuadra at 813-415-2431!

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