Planning for retirement may seem overwhelming, but the\nsooner you get started, the better off you\u2019ll be later since your savings will\nbenefit from compounded interest over time. You should also take steps to\nsafeguard your assets from high medical costs in the future.<\/p>\n\n\n\n
If your employer offers a 401(k) or 403(b) plan, take\nadvantage of it, especially if the company provides a match. That\u2019s essentially\nfree money offered to encourage you to save for your future. <\/p>\n\n\n\n
If your company doesn\u2019t offer a retirement plan, you have\nother options, such as an individual retirement account (IRA). If you choose a\ntraditional IRA, you won\u2019t pay taxes on your contributions, but you will have\nto pay taxes when you withdraw money after you retire. With a Roth IRA, you\u2019ll\npay taxes now, not later. A financial planner can help you figure out which\nwould be better for you based on your current income and tax bracket and your\nestimated future income. <\/p>\n\n\n\n
Many people know that a health savings account (HSA) can help cover medical expenses for those with a high-deductible medical insurance plan. What\u2019s less commonly known is that an HSA can also be used as a vehicle to save for retirement. Contributions are tax-deductible. If you leave the money in the account and invest it when you reach age 65, you will be able to use it tax-free for medical expenses, or you may choose to use it for other purposes, subject to taxation.<\/p>\n\n\n\n
These types of plans have annual contribution limits. The\nlimits are higher for older individuals to help them maximize their savings as\nthey approach retirement. <\/p>\n\n\n\n
If you\u2019re self-employed, you may be able to save money through a solo 401(k) or a Simplified Employee Pension Plan. They have higher contribution limits than an employer-sponsored 401(k) or an IRA.<\/p>\n\n\n\n
You may be able to claim a non-refundable tax credit though\nthe Retirement Savings Credit. Eligibility is based on income, tax filing\nstatus, and retirement plan contributions.<\/p>\n\n\n\n
Where you decide to retire can have a significant effect on your financial outlook. States have different laws on whether income, Social Security benefits, dividends, and interest are taxed. When thinking about where to live in your golden years, research tax laws and take them into consideration.<\/p>\n\n\n\n
Even if you plan and save for retirement, those funds can disappear quickly if you require long-term care and you aren\u2019t prepared. Nursing homes and assisted living facilities can cost thousands of dollars per month. Medicare and private insurance may cover just a small portion of those fees, and Medicaid only covers long-term care for individuals with few assets.<\/p>\n\n\n\n
Petruzelo Insurance can help you compare affordable long-term care\ninsurance<\/a> policies that meet high standards and that could help you\nprotect your nest egg. Contact us<\/a> today to\nlearn more about making long-term care insurance a piece of your retirement\nplan.<\/p>\n","protected":false},"excerpt":{"rendered":" Planning for retirement may seem overwhelming, but the sooner you get started, the better off you\u2019ll be later since your savings will benefit from compounded interest over time. You should also take steps to safeguard your assets from high medical costs in the future. Understand the Types of Retirement Plans If your employer offers a […]<\/p>\n","protected":false},"author":1,"featured_media":2732,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2731","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general"],"_links":{"self":[{"href":"https:\/\/www.petruzelo.com\/blog\/wp-json\/wp\/v2\/posts\/2731","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.petruzelo.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.petruzelo.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.petruzelo.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.petruzelo.com\/blog\/wp-json\/wp\/v2\/comments?post=2731"}],"version-history":[{"count":1,"href":"https:\/\/www.petruzelo.com\/blog\/wp-json\/wp\/v2\/posts\/2731\/revisions"}],"predecessor-version":[{"id":2733,"href":"https:\/\/www.petruzelo.com\/blog\/wp-json\/wp\/v2\/posts\/2731\/revisions\/2733"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.petruzelo.com\/blog\/wp-json\/wp\/v2\/media\/2732"}],"wp:attachment":[{"href":"https:\/\/www.petruzelo.com\/blog\/wp-json\/wp\/v2\/media?parent=2731"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.petruzelo.com\/blog\/wp-json\/wp\/v2\/categories?post=2731"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.petruzelo.com\/blog\/wp-json\/wp\/v2\/tags?post=2731"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}