There is so much confusion surrounding retirement plans. In fact, it can be incredibly difficult to determine the type of retirement plan that is best for you. The reality is, there are so many different options to choose from that it can be incredibly debilitating to sit down and create a retirement plan for yourself. However, taking proactive steps towards making your retirement plans easier is actually doable. Here are some helpful tips and tricks to finally choose the perfect retirement plan for your unique and specific needs and wants.
Individual Retirement Accounts (IRA’s)
Is an individual retirement account right for you? Traditionally, IRA’s are the buzzed about retirement plan that most people think about when considering the best retirement plan option for them. In fact, the IRA is the most basic of retirement plans out there. It’s not just the easiest retirement account to set up and manage, IRA’s are typically designed to be flexible. You can move them and roll them over as you wish. This flexibility can be completely useful for people looking at retirement plans early on in their careers. From individual stocks to bonds, there are various different ways that IRA’s can be incredibly effective and efficient when it comes to properly creating a retirement plan for your future.
Not many people are actually covered by traditional pensions these days. Long ago, traditional pensions were quite heavily relied upon. Now, we have moved on from these retirement plans and instead, allow people to have more control over their retirement plans. This is in stark contrast to traditional pensions where your employer had all the control over your retirement.
Employer Sponsored Defined Contribution Plans
These types of retirement accounts are beneficial for many. In fact, these types of retirement accounts encourage people to work with their employer to save money for retirement. Just like a 401(K), employer sponsored defined contribution plans will typically only be available for private-sector employers.
At the end of the day, getting your retirement plans sorted out as early in your career as possible is the smartest thing you can do for your future. In fact, investing in the right retirement plans can make a world of a difference when it’s finally time for you to say goodbye to the workforce and take a load off with a proper retirement plan.
Contact Bowman & Company Today
Bowman & Company CPA, PC provides all of our individual and small business customers with experienced, accurate, and affordable financial services. Our financial services aim to decrease your taxes and increase your net worth through responsible, timely, and accurate record keeping. We offer our services to clients throughout the Washington, D.C., metropolitan area, including Maryland and Baltimore County, Columbia, and Howard County. For more information on our offerings, contact us online or call us at (410) 381-8121. You can also find us on Twitter, Linkedin, Facebook, and Youtube.