Your retirement is going to be what you make of it. Having a secure and enjoyable retirement requires advanced planning to ensure you don’t spend your golden years working or worrying about money. Starting your retirement planning early is essential, and making smart choices with how you invest can make saving easier.
Hedeker Law can help. Our IRA & retirement planning lawyers have offered assistance and advice to clients in Lincolnshire and surrounding areas throughout Chicago who are making plans for retirement savings. We provide help at all phases of retirement planning, from opening your first accounts to knowing how much to withdraw to make your money last when you have retired. Give us a call today to find out about the personalized assistance we can offer you and to get answers to important questions including:
- What is involved in retirement planning?
- Should you use an IRA to invest for retirement?
- How can a Lincolnshire IRA and retirement planning lawyer help you?
What is Involved in Retirement Planning?
The process of retirement planning involves determining what you need saved for a comfortable retirement, finding ways to meet your savings goal, and taking out money in an appropriate way as a senior so you do not go through your money too quickly.
Hedeker Law helps you to set your financial goals, based on what you are currently earning, what you likely will spend during retirement, and what returns you hope to achieve. We also provide assistance in selecting investment accounts that keep your nest egg safe and that help make it easier for you to save enough.
Today, few employers provide defined benefit pensions and some don’t even offer 401(K)s. You need to be in control so you can retire when you are ready and have the money you need to truly enjoy your golden years.
Should You Use an IRA to Invest for Retirement?
One of the things that Hedeker Law provides assistance with is determining if you can make use of IRAs to invest for your retirement. IRAs, or Individual Retirement Arrangements, are treated differently under the law than other types of investment accounts.
IRAs get special protections in bankruptcy cases and other situations where other assets may be at risk. In bankruptcy, for example, IRS assets are exempt from being taken to repay creditors, so your retirement savings cannot be lost.
IRAs also offer favorable tax benefits. Depending upon the kind of IRA which you open, you may be able to invest money and take a deduction for the cash you put into the account. Because of the option to make pre-tax investments, the government is essentially subsidizing your savings and making it easier for you to put aside retirement cash. This pre-tax investing is available in traditional IRA accounts, as well as certain other types of individual retirement accounts like SEP and Simple IRAs that are intended for entrepreneurs and small business owners.
Another alternative is to invest in an IRA that allows you to invest with post-tax money, but to get tax breaks when the cash is taken out. With a Roth-IRA, you can withdraw money from your account without paying taxes, provided you follow the rules and wait until retirement to begin taking money from the account. If you believe taxes that you pay are likely to be higher when you are a senior, a Roth-IRA may be the answer.
IRAs have income limits, and if your income exceeds these limits then you will not be able to take advantage of tax breaks. You can, however, still have an IRA that allows you to protect retirement assets and grow your wealth. IRAs also have annual contribution limits. If you miss a year, your chance to contribute that year’s investment will be gone forever. You should not wait to start your IRA and begin investing, as you want to take full advantage of the government help that makes retirement saving simpler.
How can a Lincolnshire IRA and Retirement Planning Lawyer Help You?
Hedeker Law believes everyone, no matter how much they make, should be able to live comfortably during retirement. To do this, you need to make a plan, take advantage of the tax advantages available from certain accounts, and ensure your assets are kept safe. You also need help as a senior to understand rules for withdrawing money and to make your nest egg last. We help with all this and more.
To find out how our legal team can assist clients in Lincolnshire and surrounding areas throughout Chicago, give us a call at 847-913-5415 or contact us online today.