Preparing For The Life After Retirement Plan

1140 WordsFeb 13, 20175 Pages
Introduction For every adult in the professional world, preparing for the life after retirement is an essential strategy that guarantees monetary freedom in the latter stages of life. Therefore, it is necessary that an individual come up with an effective retirement plan to secure a comfortable future. Additionally, individuals who develop such a plan in youth will most likely generate the highest benefit when they retire. It is important to develop a strategy that will enables members of an organization to successfully plan for their retirement that may be fast approaching or far off. Retirement Plan Proposal The most uncomplicated condition in creating an effective retirement plan is ensuring an individual can save part of their current…show more content…
The 401(k) is provided to individuals employed by for-profit organizations while employees such as teachers may be offered 403(b) (Mears, 2014). Through consistent contributions, an employee can transfer their 401(k) or 403(b) account from one employer to the next. An alternative option is the individual retirement accounts (IRAs). In this case, the individual will set up a personal account with one of the numerous financial corporations or mutual funds companies. Based on federal law, individuals will set aside part of their salaries to the account it will then be invested with the possibility of growth over time without being taxed. This may also be categorized along with the Simplified Employee Pension plan (SEP) where the employer may match the contribution of the employee or not according to their capability of the organization. This is a valid savings plan particularly in cases where the employer matches your contribution, which is actually free money. There is also the option of a health savings account (HSA) that allow individuals to put monies away for their retirement tax-free. In such cases, an individual will have to make contributions either as an individual or as a family with those above the age of 55 being allowed to make higher contributions. Through this saving plan, an individual will also be provided with an
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