Who doesn’t dream of leaving the boring 9-5 job behind and retiring to their dream house by the beach? What about the chalet in the mountains where the grandchildren can gather for the holidays? These are obtainable retirement goals, provided that you begin saving now and invest wisely. The government offers a multitude of tax-deferred and tax-free programs to help you achieve these dreams. Choosing which of these suit your needs best can be a difficult decision, but it can be made simple through the consultation of a licensed CPA.
Programs to Benefit Your Planning
There are many useful ways to get your dream retirement plan rolling in a positive direction. If your workplace offers it, a 401(k) is the safest tax-deferred method of investing in your future. These plans come directly out of your paycheck before taxes are applied so that they can save you money now as well as in the future. However, the limit for a 401(k) in 2019 was $19,000 in annual contributions, and it is obvious that no one is really capable of buying a beach house with that kind of money.
Another tax-favored investment is a traditional IRA account, which allows you to contribute $6,000 a year tax-free. A Roth IRA account allows you to to contribute with after-tax dollars, but then you are not taxed on the income generated by this account. Other options for savings include money market accounts, mutual funds, stocks, or bonds. Choosing a balanced portfolio that is correct for you can be easy with the help of a professional CPA.
When it comes time to retire, a certified public accountant can be vital in deciding on the best way to draw down on these investments to minimize tax impact and make the most amount of money available for chasing those dreams. Each of these investment vehicles has different methods for protecting your money and ensuring a more comfortable future.
With a solid plan for financial security, you are now free to come up with the activities and adventures you hope to have once you decide to retire. It is never too late to start planning for the future. A wise investment now can secure a comfortable lifestyle you can look forward to later in life.
If you are interested in learning more about how to prepare a future that is sculpted to your preference and ensuring a relaxed retirement some day, come see what services we offer to help you get on this beneficial path. We offer many ways to prepare and are happy to get you started.