Palo Alto Retirement Planning
Palo Alto retirement planning is seldom a priority for young adults. If you are a person in your twenties and just starting out your Palo Alto career, chances are you haven't given much thought to California retirement planning. However, this is actually a really good time to start saving. Planning ahead will be very beneficial to you when your CA retirement rolls around.
Plan Ahead for Success
The first reason you should begin to plan now instead of putting it off has to do with setting yourself up to succeed. With everything in life, the more you prepare, the better you are. This is also true for Palo Alto retirement planning. Simply put, this involves saving money and investing it in the hopes of making it grow so you have the funds you need to live off of when you retire.
So, also simply put the earlier you start saving, the better chance you have of making sure your Palo Alto retirement planning account will sustain you when you need it to. However, it is much more complicated than this. There are some other reasons that starting early will help you.
For instance, since you are young, you can afford to be a little more risky with your Palo Alto retirement planning investments. With any account, you have certain investment options that range from the very safe to the very risky. The safe investments are more guaranteed to not lose money, but they will also not earn a lot of money. The other side of the proverbial coin then is that the riskier investments have a high risk of losing money with a high chance of making exponentially more.
Because you are so far from retirement age, you can afford to gamble more with your Palo Alto retirement planning investments than your older CA colleagues. This of course can result in you losing what you have and needing to start all over again. However, it could also result in your having a much larger sum much quicker. If the first scenario happens, you are still young enough to recover and have little to no impact on the grand scheme. If the latter happens, you can go more and more conservative with your Palo Alto investments as you age, resting assured that you have already set yourself up with a large, solid foundation.
What Type Should you Get?
So, you're convinced that Palo Alto retirement planning in your twenties is a good idea, but you aren't sure what comes next. The first thing to do is to open a California retirement planning account. There are many account types, so this can be a difficult decision to make.
The first thing you should do is check with your Palo Alto employer. Most employers offer their CA employees access to Palo Alto retirement planning accounts and or resources, so this is the best place to start, for a couple of reasons. First, if your employer offers a 401K program, it is likely they will cover and costs and fees associated with the setup and maintenance of the account. Additionally, many employers will match the amount you put into your California retirement planning accounts (up to, of course a certain limit). So, not only can you get your account for free, you will also earn more money just for participating.
Another reason that opening up a Palo Alto retirement planning account through your employer is a good idea is that you can take it with you from job to job. Most Palo Alto employers are very good about allowing you to transfer your funds from your previous employers account into your new employers account. On occasion, there is a fee associated with the transfer, but it is still very beneficial to you because you never have to worry too much about starting over when you start a new Palo Alto job. You can easily transfer to as many or as few jobs as you want without losing what you have already gained.
If you do not have the option of opening a Palo Alto planning account through your employer, or you just want another account, a Roth IRA is the best choice for you. Roth IRA's have certain regulations built into them that make them more beneficial to younger investors. This type of account uses post payroll funds, so you have already paid taxes on them. This helps because you will not have to pay taxes on the contribution amount when you withdraw it at retirement. Additionally, you can withdraw some of the funds earlier if you have expenses come up that you weren't planning for. This is really an ideal type of Palo Alto retirement planning account for a person in your age group.
Retirement Planners In Palo Alto
Financial Engines Advisors, LLC2350 Mission College Blvd. Suite 450
Santa Clara, CA 95054
Mallory Dinis - Senior Vice President - Investments
Financial Engines Advisors, LLC4301 Hacienda Drive, Suite 100
Pleasanton, CA 94588