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Roughly 50% of American households don’t have any retirement savings.
It’s not that these households don’t know the importance of retirement planning. Some are behind simply because they’re not working with retirement planning professionals. Without expert guidance, it’s easy to make costly mistakes, such as starting to save for retirement when it’s too late.
This begs the question: are retirement planning services a preserve of the rich?
Well, a good retirement planner will charge you a premium for their services, but it’s not out of the reach of the average person. Nonetheless, some people would rather tackle this important issue on their own than pay someone else to do it for them.
Read on to learn how these services will benefit you.
Financial Planning
You don’t need a lot of money to start saving or investing people. However, many people are unable to get started because of poor financial management.
A retirement planner will help you build a sound financial plan so that you can start putting some money aside for retirement. For example, they can review your current budget and advise you on where to cut back to free up a portion of your monthly income, which can then go into an individual retirement account.
Investment Strategy
Saving money alone isn’t going to help you raise the amount of money you need to retire comfortably. You need to supplement it with an investment plan.
Or, if you have already saved up a significant amount of money, you can grow it by investing in the right markets.
However, left to their own devices, most people will make bad investments and end up losing most of their capital. This is where a retirement planner comes in. These professionals have investment expertise, which they’ll use to advise you on the best investment markets.
Tax Strategies
The taxman is always hungry for your money. Your retirement funds aren’t spared.
If you’re not savvy, taxes can take a big chunk of your retirement income, potentially leaving you in a bad financial position. A retirement planning professional will devise strategies to minimize your tax liability. They can advise you to set up a retirement account with tax advantages, for example.
A Helpful Resource
Retirement planning comes with a lot of questions. If you’re employed, for instance, you might be wondering ‘What is a 403b plan?‘ or whether a 457b plan applies to your situation. If you’re self-employed, you might want to know which individual retirement accounts are best for you.
Whatever questions you have regarding retirement, it helps to have a retirement planner on your side. They’re your go-to resource, and you can count on them to give you the information you need.
You Can Afford Retirement Planning Services
Retirement planning services might look out of reach for ordinary people, but they’re affordable. Plus, don’t look at what you’re paying the professional. Consider the long-term benefits and you won’t worry about the service fees.
Starting to plan for retirement today helps you achieve financial security during your senior years. Explore our blog for more financial tips and advice.