Around 28.6 million Americans are currently in the retirement phase of life. It’s an exciting time full of a lot of possibilities and room to explore new hobbies and spend more time with loved ones.
But it also comes with some worry and stress about being able to make ends meet. There’s no set plan in place to guarantee you’ll have the money you need. Instead, it’s up to you to determine which of the types of retirement plans available will work best for you and get those set in place.
When it comes to retirement planning, the sooner you start the better off you’ll be. So take a look at these retirement plan options to see which will be your best fit.
If you’ve done any kind of income planning, chances are you’ve heard of 401(k)s, they’re the most common retirement plan option. This is mainly because it’s offered through your employer.
A certain part of your paycheck is taken and put into a kind of savings account or investment of your choice. From there, your employer can match a certain percentage of those funds to give you even more retirement funds. It’s an easy way to grow your investment without much effort on your part.
TSP, or Thrift Savings Plan, is a common choice for retirement plans for government employees. These plans are like 401(k)s since they’re run by your employer and you can also match funds. Federal benefits are often much better than those in private businesses though.
When you’re eligible to use these funds depends on your age and also how long you have been a federal employee.
Anyone with an income source can start an individual retirement account (IRA). There are a few different types of IRAs that you can open depending on your specific situation, some include Roth IRA, SIMPLE IRA, or the traditional IRA.
Putting money away in this way has some tax advantages but it’s important to work with a financial advisor to understand all the intricacies.
One of the biggest concerns for those in the retirement age is health and being able to afford the medical care you need. This is why a health savings account (HSA) is also a popular option.
This account is a part of your healthcare coverage and funds can be used tax-free on approved medical expenses.
All Types of Retirement Plans to Get You Covered
After looking through these types of retirement plans, it’s a good idea to speak to a professional who can walk you through the details. They’ll be able to apply your specific situation to a plan and help you determine the best choice.
This is especially true when you’re looking for retirement plans for government employees who have a different set of benefits.
Need some financial planning or retirement advice? Contact us today to set up an appointment with one of our helpful professionals.