You’ve set money goals. You’ve achieved those goals. Now you deserve to be rewarded!
Retirement is a common goal for most workers today - you're probably hoping to get there someday - but did you know that retirement is a fairly recent concept?
Picture this: you wake up on your first day of retirement. You sleep in because you have nowhere else to be. You’re cozy in your warm bed, but you decide to make your way downstairs to make a fresh pot of coffee.
Then it hits you. What will you do with all your free time? After you have coffee, what’s next? Sitting on the couch watching TV for the next 20-plus years?
Do you know the #1 concern of current retirees? It’s not how much they’ve saved. Instead, most people over the age of 50 fear being inadequately prepared for future healthcare costs!
Where do you get your news? Is it from CNBC or The Wall Street Journal? Fox News or The New York Times? You trust the media to give you the appropriate information. But what happens when you’ve been led astray?
Golf memberships, cruises to the Caribbean or Alaska, and naps at 3 p.m.; is this what retirement looks like to you? You spend your entire life working for the moment when you can quit your job and don’t have to look back. You’ve worked long hours and spent sleepless nights dreaming about retirement. But the question is: how well did financially plan for these dreams? After all, you have to pay for it.
Today, the Department of Labor’s “fiduciary rule” goes into effect. This means stockbrokers providing financial advice on retirement accounts must now prioritize your best interest. According to the White House Council of Economic Advisors, conflicts of interest with financial advisors and brokers account for client loss of $17 billion every year. This may seem surprising that financial advisors and brokers weren’t always required to have your best interests in mind.
As you plan for your retirement, and try to save for retirement, we know your money is getting pulled in about 100 different directions. Competing needs can make setting aside your monthly “profit” a challenge. But here’s why you need to make it a priority.
When you think of the biggest purchases you’ll make in your life, your house probably comes to mind first, right?
There are a lot of ways you can save money for the future. Some of the most common include a traditional 401(k), Roth 401(k), traditional IRA (Individual Retirement Account), Roth IRA, HSA (Health Savings Account), and even “taxable” investment accounts. Whew!
So how should you prioritize your saving to be the most tax efficient? First, a few definitions: