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Is retirement among your
highest priorities?
Have
you taken adequate steps to prepare for it?
One
of the biggest concerns facing Americans today is retirement.
Unfortunately…
Many company-sponsored,
company-paid pension plans, long the staple of many
Americans’ retirement
incomes, are being replaced by qualified retirement
plans funded by employee contributions.
According to current assumptions made by the Social
Security Board of Trustees, beginning in 2017, annual
benefits paid to retirees will exceed payroll tax
revenues. By
2041 they predict the Social Security Trust Fund
will have been fully spent, resulting in ongoing
reductions in benefits for future retirees.
For many, the answer will be self-funded retirement
plans such as:
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IRAs
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Employer-sponsored 401(k) and 403)b) plans
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Annuities – fixed and variable
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Life Insurance cash values
Most of us list financial security at retirement among
our highest priorities, yet only a few of us take adequate
steps to prepare for it.
The typical 45-year old married couple in the United
States will have only a portion of what they’ll
need at retirement to maintain their existing lifestyle.
Where will the balance of what you need to live on come
from? If the funds aren’t there, what will
you have to give up?
Assuming Social Security is still solvent when you retire,
it may only pay a small percentage – no more than
one-third – of your pre-retirement income.
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Are you counting on Social Security to help you afford
retirement?
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Could you maintain your current lifestyle at this
level of income?
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Where will the balance of what you need to live on
come from?
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If funds aren’t there, what will you have
to give up?
With proper planning, you can accumulate assets to supplement
your retirement income, and potentially stretch those
funds out over your expected lifetime.
Plan for your retirement:
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You may want to consider opening an IRA. Then,
defer as much as you can into it. Are you self-employed?
Look into a Simplified Employee Pension (SEP) plan
or installing a 401(k) plan.
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Exercise restraint. Once you’ve put money
away, leave it alone. The U.S. government imposes
strict penalties on money you take out of tax-favored
retirement plans, in addition to making you pay income
tax on it.
Learn all you can. With a 401(k) and other
self-funded plans, you determine how your money is
invested. By applying some basic investment strategies,
you’ll have a better shot at achieving your
retirement goals and objectives.
Chose the right tools now to prepare
for the comfortable retirement you expect and deserve.
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