Back to top

Blog

Click here to go back

It’s Never too Early for Retirement Planning in Sacramento, CA

Posted by Admin Posted on Mar 23 2017

No matter what job you have or how much you enjoy that job, the time is going to come someday when you’re going to be ready to to stop working. Retirement is something that will come to everyone at some point—some, sooner than others—and when it does come, you’ll need a way to keep generating monthly income in order to live comfortably.

There are a near-infinite number of ways to approach retirement planning in Sacramento, CA. Some people squirrel money away under their mattress for years at a time; others open a 401(k) and have their company match a portion of their contribution; and still more people contribute to investment brokerages and other such retirement savings options. How you plan for retirement is up to you, but the fact rings true: everyone needs to start planning and there’s no time too early.

Knowing your options

While everyone might have their own way of saving for retirement, it behooves you to know exactly what options are available to you. Take a look at some of the most common options and what makes them unique:

 

  • 401(k) or 403(b): These are employer-based plans that have a distinct advantage, since companies will usually match retirement contributions of employees up to a certain amount or percentage. Who could pass up free money?!
  • IRA: Traditional IRAs, Roth IRAs and other IRA accounts have a cap on the amount you can contribute during a calendar year, but the good news is that this money isn’t taxed in retirement.
  • Investment accounts: These retirement accounts are a bit more subject to market conditions, but they also have tremendous upside when it comes to making money with your money. Money Markets and other types of investment accounts can be opened through brokerage agents and over time, have the potential to grow exponentially.
  • Pensions: Like other employer contribution plans, a pension can be paid into by employees and matched by employers, however a pension isn’t always a set amount and can fluctuate depending on the contribution on the employee.

The sooner the better

Because your retirement contributions compile throughout the years and compound no matter what investment path you take, it behooves you to start one as early as possible. The best time to start your retirement planning in Sacramento, CA is during your 20s. It’s during this time of your life that you’re likely to have a sustainable job, disposable income and the fewest number of expenses. Getting a jump on retirement savings early means having more contributions over a longer period of time, thus a more comfortable source of income during your golden years.

If you’re looking forward to the day when you no longer have to wake up and go to work, it’s in your best interest to start planning for your retirement now. The more you can save and the sooner you can start saving it, the more years of retirement you’ll have to enjoy your life, whether you’re the type of person who likes to travel or simply enjoy work-free days at home.