What is the best way to save for retirement?
Are employer 401(k)'s still the best alternative or should I use IRA's or other tax saving products?
Answers | 6
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For example age is a vital factor the younger you are the easier meeting long term goal can be, A roth IRA or Roth 401k for a younger person can significantly change the amount you save and most importantly the amount you can spend in retirement.
As far as fees for retirement plans if you do some looking around and ask some good questions you can get fees that are fair so don't let that stop you from looking at 401k and IRA methods.
Your return on investment (ROI) is more valuable than "tax saving products".
If you need $50k/yr in today's money, this is $100K/yr in 24 yrs (at a 3% inflation rate). So, if your plan only nets you $50K/yr matters not EBT or EAT-your needs are not being met. Meaning your expenses are exceeding your income.
We can help you estimate your number and put a value on your financial needs in retirement. Send me a message. No obligation.
We love to actively manage self-directed retirement plans. as a Fiduciary, we can customize it to suit your needs. Whichever plan you use, always keep a margin of safety.
It's not what you make, It's what you keep that determines your lifestyle.
As far as what is the best choice, that will depend on your situation and how disciplined a saver you are. If you have trouble setting aside money "after" your paycheck gets to you, payroll deduction plans might be a better option for you. Do you want tax savings now or later? Do you need write offs right now? If not, does something like a Roth or an annuity work for you?
Then you also look at are you going to get help (matching) from your employer for using their plan?
The big thing is I will never tell somebody who has saved a bunch of money that they were wrong. They might not have used the best investment choice, but the did develop the habit of saving, which is something far too many people lack.