Did you know that over half of Americans 55 and older don’t have any retirement savings at all? Whether that’s because of a failure to plan, major emergencies that drain savings or jobs that don’t pay enough, that’s a frightening state of affairs when you’re approaching retirement age. Having a retirement plan in El Paso, TX ensures you won’t depend solely on Social Security for income.
Customized retirement plans
No matter how old you are, it’s never too late to start planning. Safe Path Financial is here to help. We specialize in creating customized retirement plans so you’ll have savings to fall back upon.
We’ll sit down with you and discuss your finances. Once we’ve determined what state your finances are in, we’ll create a customized plan for you. Throughout the process, we’ll discuss strategy together—after all, there are different ways for you to achieve your retirement goals.
After we discuss the pros and cons of each situation, we’ll create a personalized retirement plan that works with your income, lifestyle and savings goals.
Common retirement plan types
There are plenty of different retirement plans available, depending on whether you’re saving individually or your employer has sponsored your plan. Here are some of the most common types available:
- Roth IRA: A Roth IRA account is available for individuals with taxable income who earn $140,000 or less per year (or $208,000, if you’re married and filing jointly). This type of account lets you withdraw your earnings tax- and penalty-free, throughout your retirement.
- Traditional IRA: A traditional IRA allows you to make (usually) tax-deductible contributions. Your funds may be invested in a number of different assets, with tax-deferred investment earnings. After you start withdrawing (at age 59.5 or older), your withdrawals are taxed as income. Currently, you can contribute up to $6,000 yearly if you’re under 55, and $7,000 each year if you’re over 55.
- Spousal IRA: Spousal IRAs are a strategic plan. If only one of you is earning the bulk of the household income, the non-working spouse can open up an individual IRA account. This effectively doubles the amount of money you can contribute to an IRA each year.
- 401(k): Traditional 401(k) retirement plans are employer sponsored. You can contribute pre-tax dollars up to $19,500. Your employer may offer to match contributions in an effort to incentivize investing. The money is tax-deferred, meaning you won’t pay taxes on it until you start withdrawing.
- Fixed annuities: Fixed annuities are an insurance contract to supplement retirement savings. There’s no limit to how much you can contribute, and include tax-deferred growth. If you die before your spouse, there are often death benefits that can be paid out to designated beneficiaries.
These are just a few of your available retirement savings options. There are many types of plans that can work with your specific income level and savings goals.
If you’re interested in customized retirement planning in El Paso, TX, reach out to Safe Path Financial today to arrange a consultation. We look forward to discussing your options with you.