In recent years, uncertainties surrounding Social Security, the restructuring of many pension and retirement plans throughout corporate America, and the upward trend of life expectancies have all contributed to the ever increasing importance of retirement planning. Now more than ever, it is vitally important to address retirement planning regardless of your age or retirement expectations. How important is it to start saving at an early age? Here's an example of what a big difference starting young can make.
If you were to start investing at age 25 and put aside $3,000 every year into a tax-deferred retirement account for 10 years - and then stopped saving completely - by the time you reach age 65, your $30,000 investment will have grown to more than $472,000, (assuming an 8% annual return). This without contributing a dime beyond age 35.
Now, if you put off saving until you turn 35, and then save $3,000 a year for 30 years. By the time you reach 65, you will have set aside $90,000 of your own money, but it will grow to only about $367,000 (assuming the same 8% annual return). That is an incredible difference.
An important tool in your retirement planning may be an Individual Retirement Account (IRA). Traditional IRAs offer you the potential to make tax deductible contributions and receive tax-deferred earnings. A Roth IRA, although not tax deductible, allows your earnings to grow tax deferred and you may be eligible for tax free distributions.
By looking at your anticipated cost of living, current retirement assets/savings/investment programs and the expected rates of inflation, our representatives can help you estimate the cost of your retirement. Contact a Weitzel Financial Services, Inc. investment professional to receive an in-depth review of our current retirement situation, plus a comprehensive retirement strategy for you and your family. They will help you decide which IRA or investment best suits your needs.
Many assets, including individual retirement accounts (IRAs), life insurance policies and annuities can have beneficiaries designated to receive the asset after your death. These selections require careful consideration since they typically override any provision in your will. In addition to selecting the most appropriate person as beneficiary for each asset one should always: name a contingent beneficiary, indicate what percentage of each asset each beneficiary should receive, assess whether beneficiaries are capable of managing that asset and periodically review your beneficiaries to see if changes are warranted.
Our investment representatives are ready to assist you no matter what your retirement needs may be.
Disclaimer: Weitzel FInancial Services, Inc. is a Registered Investment Advisor offering advisory services in the state of Iowa and in other jurisdictions where exempted. This communication is designed for informational purposes only. It is not intended as investment advice or as an offer or solicitation for the purchase or sale of any security or financial instrument. See Disclosures for further details. Securities products and services are offered through Weitzel Financial Services, Inc. (member FINRA).