On the average, Americans live 20 years after they retire. During these years declining health often prevents one from working. Without saving for the big retirement day, you might not have enough money to meet your needs or enjoy the golden years. Individuals with JC Penney retirees funding often find it easier to plan for their future. Here are more tips from a financial planner.
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.
Most employers offer a retirement savings plan which is a good deal. It helps to lower your tax burden when you are making more money and defers it to the time when you are not working. In addition, the automatic deduction of these plans makes savings much easier. Companies that match employee contributions are even more beneficial. Employees should find the maximum number of matching funds and the years to work for being fully vested.
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.
Most employers offer a retirement savings plan which is a good deal. It helps to lower your tax burden when you are making more money and defers it to the time when you are not working. In addition, the automatic deduction of these plans makes savings much easier. Companies that match employee contributions are even more beneficial. Employees should find the maximum number of matching funds and the years to work for being fully vested.
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.
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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.