Retirement should be a time to look forward to when you can kick back and enjoy the fruits of your labor. Unfortunately, retirement has actually become a source of stress for far too many people. The issue: how to support yourself. While there was once a so-called “three legged stool” aiming to provide support for seniors, two of the three legs- Social Security and pensions – aren’t providing the expected support. Pensions are rarely provided today, and the long-term solvency of the Social Security Administration remains questionable. This leaves many seniors dependent upon their savings and facing financial struggle.
If you don’t want to spend your golden years working or worried about money, your best option is to start planning early. No matter how old you are, however, it is never too late to begin exploring ways to make your money work for you. Eghrari Law Firm provides IRA & retirement planning advice and we are here to help. Give our Long Island retirement planning lawyers a call at (631) 265-0599 to get personalized advice and answers to questions including:
- What should I be doing for retirement planning?
- How do IRAs work and why do they matter?
- What can a Long Island retirement planning lawyer do for you?
What Should You Be Doing for Retirement Planning?
As early as possible in your career, you should begin setting aside money for your retirement. This means even if you are just taking your first job and aren’t making a lot of money, you should still begin to put aside a portion of your income.
The younger you are when you begin saving, the less of your money you will actually have to invest since you can make compound interest work for you. Eghrari Law Firm can help you to set up retirement accounts, set goals, and automate your savings so you can seamlessly put aside money every month.
If you are getting older and haven’t yet gotten serious about retirement savings, now is the time to act. You should work with a retirement planning lawyer to set savings goals, understand catch up contributions, and decide what you need to do in order to retire by your target date.
Finally, if you have reached retirement, your planning process shifts to making sure that your money lasts. An attorney can advise you on how to decide what amounts to take out while protecting the balance of your accounts so you have enough to live on. An attorney can also help you to understand some of them many investment options which are often targeted at seniors, such as annuities, so you can make informed choices.
How Do IRAs Work and Why Do They Matter?
As you begin investing money for retirement, you will need to decide where to put your nest egg. You should strongly consider investing in an IRA. IRA stands for Individual Retirement Arrangement. There are different kinds of IRAs, but the commonality is that they all receive favorable tax treatment. When you invest in an IRA, you can either invest with pre-tax funds or you can enjoy tax-free growth. Both types of tax benefits can make it much easier for you to save for retirement.
IRAs are not investments themselves, but are specific types of investment accounts where you can put your money. Most people open either a Roth-IRA or a traditional IRA, but there are other options for certain individuals who run their own business or who have non-wage income. These other options, including Simple and SEP IRAs, can allow you to invest more money in these accounts annually. There are contribution limits, and upper income limits for IRA investing, so you need to talk with a retirement planning professional about which type of IRA is right for you.
Once you’ve put your money into the IRA, you can buy stocks, bonds, mutual funds, and other types of investment products which should grow and help you achieve security during retirement.
What Can a Long Island Estate Planning Lawyer Do For You?
A Long Island estate planning lawyer can provide you with comprehensive help making plans for your retirement future. Eghrari Law Firm has helped many clients throughout Suffolk County and surrounding areas with ensuring they make smart choices for retirement savings. Whether your career is just beginning, you’re reaching retirement age, or you have already retired, we can provide the advice that you need. Give us a call at (631) 265-0599 or contact us online to find out more about how a member of our legal team can help you.