Dependable Retirement Planning Advisors

Yarmouth Retirement Planning

Yarmouth retirement planning can seem overwhelming, if you are not prepared. Though, whether you live in South Yarmouth, West Yarmouth, and Yarmouth Port, it is important to start your retirement planning early to ensure that your savings outlast your lifetime, whether you stay in . Massachusetts or Yarmouth or not. The best way to start your Yarmouth retirement planning by seeking advice from a Massachusetts retirement planner on how to invest your money to make it work for you, long after you have stopped working.

There are obviously accounts designed specifically for your retired years and Yarmouth retirement planning. They are IRAs, Roth IRAs, SEP IRAs and 401ks. There are other avenues of saving for retirement, but not all are designed for retirement. The 401k account is tax-deferred, and is supplied by large companies to their employees. Companies usually will match their employees' contributions up to a dollar maximum every year, to help with their employees' retirement planning.

The IRA refers to the Traditional IRA and is also supplied with your pre-tax dollars, though it is not through your corporation. It is through the investment or retail bank of the individual's choosing. The Roth IRA is a little different. It is post-tax dollars that you use to make contributions into it. A SEP IRA is just for self-employed people and small business owners and their employees, but otherwise is a traditional IRA.

Know Your Choices

As far as the 401k goes, there are a few things to know when considering how it factors into your Yarmouth retirement planning. When you open your 401k and start contributing to it, you do it with pre-tax money. You usually will see a match from your MA company. And, after a few years you may be fully vested in the company's 401k. Now, if you have been following corporate trends over the past 20 years, then there is a likelihood that you may not make it to the 5 year point. This is a common time to be fully vested, even in MA.

So, it is important to know what it means to be vested, or not vested when concerned with Yarmouth retirement planning. When you are not fully vested and you are laid off, your former employer will take back the same percent of the money that they had matched for you, up to the percent that you are vested. This means if you have been with your company 4 years, but need 5 years to be fully vested, you are only 80% vested. Then, the company will take 20% of their match money back, and that can feel like a double sucker punch, and put a dent in yourYarmouth retirement planning.

It can stink, particularly if you are already dealing with the sting of a lay off. These rules are allowed by Federal law. So, there is nothing wrong with that, when you get over the shock of your 401k shrinking before it comes back to you after a lay off. Though, consider it a new opportunity for growth and better success, just like the loss of your old job and, or line of work. Consider it a harbinger of good things to come to you in the future.

Planning Following a Layoff

When you have been laid off, you have two options. You can just roll over your 401k into a Traditional IRA. They have the same tax-deferred rules that your 401k had. Here's where you have a big decision. You can either keep it in a Traditional IRA, with tax-deferred status, or you can open a Roth IRA, pay the taxes and have access to your money, should you ever need it. Though, it is better to leave it untouched to grow, either way.

When you are planning and considering whether to keep it tax-deferred or pay taxes, it is important to think about your tax bracket now, compared to where you think you might be once you retire. While you may not want to even think about another money matter when you are in this situation, you have little choice. Plus, this is an important time to consider hiring a professional Massachusetts planner to help you evaluate your options so you can stay on track with your Yarmouth retirement planning.

While you would normally assume your Federal tax bracket would drop drastically (because your income will drop) it may not. Taxes have been fairly low, and might increase, even for those who are retired. Consider these conditions when you are working on your Yarmouth retirement planning. Prudent planning will help immensely in Yarmouth, MA.

Yarmouth retirement planning is all about how you will successfully enjoy your retirement. It starts by saving money and planning. This way, your money will work for you whether you stay in Yarmouth, Massachusetts, or enjoy retirement elsewhere.

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Retirement Planners In Yarmouth

Annette M Crowley CRPC®, LUTCF®
Annette M Crowley CRPC®, LUTCF®
57 West Bat Rd
Osterville, MA 02655

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