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Set Up a Qualified Retirement Plan and Secure Your Later Years

Qualified Retirement Plan
Qualified Retirement Plan

As early as now, it is important that you plan ahead for your retirement with a qualified retirement plan. If you want to live comfortably in your later years, choosing the right type of qualified retirement plans will give you the most out of your retirement savings and help you achieve the kind of lifestyle you dream of later in life.

Here are some valuable tips to help you plan your retirement and build up funds that will more than satisfy your retirement dreams:

Consistently Make Contributions to Your 401k

Take advantage of employer-sponsored 401k and contribute at least as much to match employer’s matching contributions. Every employer uses a different matrix but up to 6% matching contributions are quite standard in the industry. The more money you save in your retirement plan, the more returns it will earn for you, especially if you know how to invest your account wisely.

Set Up Your Own Retirement Account

If you don’t have access to an employer-sponsored 401k, you can set up your own account with options such as the Solo 401k or the IRA plan. This way, you can choose whether to make contributions to your account on a pre-tax or after-tax basis. Also, if you are self-employed, you can choose the best retirement plan for self employed individuals. Self-directed retirement plan for self-employed – such as the Solo 401k – allows you total control over your savings and investments.

Avoid Withdrawing Early from Your Retirement Funds

Avoid withdrawing funds early from your account and let it grow with its investments. The money you withdraw will put your retirement savings at loss of investment opportunities, beside the 10% early withdrawal tax. If you urgently need funds from your 401k, you may take advantage of the loan option if your plan allows that. Pay back your loans according to the terms so that your savings will be replenished. To avoid taking money away from you funds, it would be best to set up a separate emergency fund. With that, in times of need, you will not have to tap into your retirement savings.

Choose the Best Qualified Retirement Plan Provider

Not all retirement plan providers are capable of meeting your needs and expectations. Choose a provider that is passionate about their mission to help individuals achieve their retirement dreams. In terms of Solo 401k, some plan providers put restrictions on some of the benefits this plan offers. It is best to find an honest financial service provider that is willing to help you take advantage of all the benefits you can get from your chosen qualified retirement plan.