Retirement planning involves ensuring you have funds for the 20 or more years you could live after you no longer work. Unless you have saved, the big day may not be a celebration. You might find you do not have money for the golden years. JC Penney retirees funds may help but you should speak with a financial advisor to get the most from what you already have.
A financial planner can help you to evaluate your retirement needs. According to planners, retirees need a minimum of 70 percent of their current income to maintain their current standard of living. To make matters worse, lower earners, who find saving most difficult, will need 90 percent of their current income to stop working.
If a retirement savings plan is available through your current employer, enroll. These plans help to lower your tax burden and increase your refunds. Additionally, they often come as an automatic deduction so it is easier to save. If your company contributes matching funds, it is like getting a raise for each dollar saved. Find the maximum amount of matching funds and the length of time you must work to be fully vested with matching funds.
The way you save is often just as important as the amount you put into savings. Inflation can eat away at your retirement dollars. Choose several different types of investments instead of putting all the funds in one. Diversifying helps to reduce risk while improving return. Let your money earn more savings for you.
Avoid the temptation to withdraw money from retirement accounts. You lose both principal and interest in doing so. In many cases, you also face penalties that further reduce savings and your tax benefit. Even borrowing against one's retirement savings puts these funds at risk as you would lose the funds and tax advantages if you default.
Leave the savings in the same plan if you change jobs. Some employers do not allow you to leave retirement in the plan if you leave the job. Move them to an approved plan within the required time. You will avoid penalties.
A financial planner can help you to evaluate your retirement needs. According to planners, retirees need a minimum of 70 percent of their current income to maintain their current standard of living. To make matters worse, lower earners, who find saving most difficult, will need 90 percent of their current income to stop working.
If a retirement savings plan is available through your current employer, enroll. These plans help to lower your tax burden and increase your refunds. Additionally, they often come as an automatic deduction so it is easier to save. If your company contributes matching funds, it is like getting a raise for each dollar saved. Find the maximum amount of matching funds and the length of time you must work to be fully vested with matching funds.
The way you save is often just as important as the amount you put into savings. Inflation can eat away at your retirement dollars. Choose several different types of investments instead of putting all the funds in one. Diversifying helps to reduce risk while improving return. Let your money earn more savings for you.
Avoid the temptation to withdraw money from retirement accounts. You lose both principal and interest in doing so. In many cases, you also face penalties that further reduce savings and your tax benefit. Even borrowing against one's retirement savings puts these funds at risk as you would lose the funds and tax advantages if you default.
Leave the savings in the same plan if you change jobs. Some employers do not allow you to leave retirement in the plan if you leave the job. Move them to an approved plan within the required time. You will avoid penalties.
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JC Penney retirees, find an overview of the reasons why you should consult an investment adviser and more information about an experienced adviser at http://www.personal-investments.net/ now.
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