Craig Bolanos, co-founder and wealth advisor at VestGen Wealth Partners in Inverness and Downers Grove, joined the ABC7 Digital Team to discuss essential considerations for selecting the best retirement plan. Assessing your financial goals is crucial. This includes estimating retirement needs, anticipated living expenses, and any travel or lifestyle plans you aim to pursue during retirement.
Many workplaces offer retirement plans such as 401(k)s. It’s essential to understand the benefits, contribution limits, and any matching contributions offered by your employer. IRAs provide additional tax-advantaged options beyond employer-sponsored plans.
Traditional and Roth IRAs have different tax implications and eligibility criteria, so understanding these distinctions is vital. The variety of investment options available within retirement plans can significantly impact your savings growth. Diversification, risk tolerance, and investment fees are all important factors to examine.
Choosing the optimal retirement plan
Retirement accounts offer various tax benefits, and understanding these can help maximize your savings. Consulting with a tax advisor can provide personalized guidance tailored to your financial situation.
While retirement accounts are designed for long-term savings, it’s also important to consider any penalties or fees associated with early withdrawals. Having a clear understanding of these rules can prevent unexpected financial setbacks. Retirement planning is not a one-time activity.
Regularly reviewing and adjusting your retirement strategy to align with changing financial circumstances and goals is essential for long-term success. Choosing the right retirement plan involves careful consideration of several factors, including financial goals, available plan options, investment strategies, tax implications, and liquidity needs. Consulting with a financial advisor, like Craig Bolanos from VestGen Wealth Partners, can provide valuable insights and guidance tailored to your specific situation.
Retirement planning is a critical component of personal finance, and taking the time to make informed decisions can lead to a more secure and enjoyable retirement.