New England Investment and Retirement Group recognizes the great significance of retirement planning for all individuals.
Retirement planning should be a top priority for all persons whether they are employed or self-employed. It involves the systematic setting aside of funds towards retirement during which earning usually ceases. This is especially true for employees who would normally leave the formal workforce anywhere between 55 and 65 years of age. During this time, earning would cease and the retiree would then have to rely upon any retirement savings for income. New England Investment and Retirement Group can help clients save towards retirement in several different ways.
With every type of retirement plan, NEIRG always suggests that it is best to start saving as soon as possible and to make the maximum regular contributions. Most experts in this area recommend that retirement planning begin as soon as the employee joins the workforce. For the self-employed, savings should begin as soon as the first earnings start coming in and on a regular basis after that.
Those persons who start saving towards retirement at a younger age, will usually reap the maximum benefits of compounding. This means that it is always better to start saving for retirement in your twenties rather than in your 30s, 40s or 50s. Younger savers will also benefit from longer savings horizons which allows for the faster accumulation of funds.
The most common type of retirement planning is the establishment of a 401k plan where employees make regular tax-free contributions towards their retirement. Usually the employer also makes a corresponding contribution on the employee’s behalf ranging between 20% and 100% of the employee’s contribution. This is an easy and convenient way to save towards retirement and has the advantage of being tax-deferred.
There are also a range of insurance-type investment plans that may be offered by financial institutions. These usually offer better rates of return than 401ks, but the risks are also greater.
To learn more about 401k planning and other retirement planning options, contact the professionals at New England Investment and Retirement Group today.