David Giertz is president of Nationwide Financial Distributors and an author. His book, “How to make the most out of Social Security” is a very insightful book that can help seniors plan for retirement. He has found that most seniors have not saved up enough to live comfortably when they stop working. Some people simply have not saved enough, while others have saved enough just for a few years. Another mistake retirees make is pulling money out of their social security account much too early. If individuals do not wait until retirement age to withdraw funds, then after retiring the monthly amounts are considerably less.
Ideally employed people start saving for retirement early. Some downfalls of waiting too long to save for retirement is that the amount of money saved will be significantly lower than if saving for years before employment age ends.
David Giertz outlines a few retirement savings decisions. Once such choice is called Roth IRA, that stands for individual retirement accounts. This option is run by the government and aided by employees. There is a cap off limit with Roth IRAs. Once a limit is met, no other funds can be added.
In addition there are Health Savings Accounts and Internal Revenue Agency Deduction Limits.
Another option is 401K savings account. These are government backed accounts. Employers add money to these type of accounts. These accounts are dollar by dollar savings amounts.
Savers Credit or Retirement Savings Contribution Credit is another viable choice. In 2018, the retirement savings limits have dramatically increased.
The most important path to take while preparing for retirement is to save money. David Giertz can’t stress that point enough. Financial advisors often don’t give tips on retirement plans, studies have found. Ideally, employees would have information before, during and after retirement. It is of the utmost importance to find a financial advisor that is well versed in social security options. Retirement can be a relaxing time, after working decades of life. By planning ahead, money issues will not be of concern.