Retirement planning involves ensuring you have funds for the 20 or more years you could live after you no longer work. Unless you have saved, the big day may not be a celebration. You might find you do not have money for the golden years. JC Penney retirees funds may help but you should speak with a financial advisor to get the most from what you already have.
Start working with the planner early to determine your funding needs for today. Continuing at your current standard of living often requires at least 70 percent of your current income. If you work a lower income job, savings can be more difficult, but it is likely you will require 90 percent or even more of your current income in order to stop working.
If your employer has a retirement savings plan, you should participate. The plan lowers your taxes, which can increase your refund each year. In addition, the automatic deductions make saving easier. If your company adds to your savings, you get even more for each dollar saved. Check with the employer to find the maximum they will contribute and the number of years you must participate to collect the matching funds.
The type of savings is often as important as the amount. Money should be invested in different types of accounts and never in just one. Diversifying reduces risk while improving return and providing more funds for retirement.
Avoid early withdrawal savings. These withdrawals cause the investor to lose principal and interest earned. Depending on your age when you make the withdrawal, you could face penalties, reducing the savings.
If you change jobs, leave them in the current plan if possible. If your employer will not allow you to leave the savings, you have other options. Roll them over into a new plan or into an IRA. You preserve your savings, avoid penalties and maintain the tax advantages until you retire.
Start working with the planner early to determine your funding needs for today. Continuing at your current standard of living often requires at least 70 percent of your current income. If you work a lower income job, savings can be more difficult, but it is likely you will require 90 percent or even more of your current income in order to stop working.
If your employer has a retirement savings plan, you should participate. The plan lowers your taxes, which can increase your refund each year. In addition, the automatic deductions make saving easier. If your company adds to your savings, you get even more for each dollar saved. Check with the employer to find the maximum they will contribute and the number of years you must participate to collect the matching funds.
The type of savings is often as important as the amount. Money should be invested in different types of accounts and never in just one. Diversifying reduces risk while improving return and providing more funds for retirement.
Avoid early withdrawal savings. These withdrawals cause the investor to lose principal and interest earned. Depending on your age when you make the withdrawal, you could face penalties, reducing the savings.
If you change jobs, leave them in the current plan if possible. If your employer will not allow you to leave the savings, you have other options. Roll them over into a new plan or into an IRA. You preserve your savings, avoid penalties and maintain the tax advantages until you retire.
About the Author:
JC Penney retirees, find an overview of the reasons why you should consult an investment adviser and more information about an experienced adviser at http://www.personal-investments.net/ now.
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