Understanding the various types of retirement plans available and how they differ can help you achieve your long-term goals. Yet with so many choices, how do you know which plan or plans is right for you? Alloy Wealth Management works with pre-retirees and retirees to design comprehensive plans that help create a lasting income during retirement. We educate clients on the pros and cons of retirement plans, how insurance can create income in retirement, social security filing strategies, etc. before recommending a plan. Even knowing the difference between a Roth IRA and a Traditional IRA, for example, can impact retirement income.
A Roth IRA can offer substantial tax benefits because contributions are made after taxes are deducted, versus a Traditional IRA where contributions are pre-tax. One allows tax-free deductions from the account and the other doesn’t. This kind of information is crucial to a pre-retiree who feels they’ll have less money at retirement than they do now.
There are several employer-sponsored 401k plans and different rules apply to each. The Solo 401k and SEP IRA are options for individuals who are self-employed and are easy to establish and a great way to build a nest egg. A Solo 401k allows a business owner to make contributions as an employee and employer which helps savings add up more quickly than with a SEP which limits contributions to 25% of the business’s income.
The best way to understand the types of retirement plans available to you and create a plan to help grow, preserve, and protect your assets is to contact Alloy Wealth Management. Call 800-689-3935 to schedule a consultation with one of our financial experts.