Retirement Planning In Pittsburgh
Retirement is a time that many people look forward to, but those who do not have been proactive with financial planning through their working years may not have much money to live on when they retire. Unfortunately, there are many people who think that they will be able to retire by the age of 65, but who later find out that they won’t be able to retire until their 70s. Here at Temple & Frayer Law Office, we understand that you have spent most of your life working and we are here to help you retire as soon as possible with the financial stability that you deserve.
This type of retirement is possible if you take action now to start income planning. Early retirement planning is always a good idea, and it can help you achieve the type of retirement that you want. It is disappointing to come into retirement and find out that you cannot take the vacation that you always wanted because you don’t have enough money. When you contact a Pittsburgh estate planning lawyer at our firm, you can take the necessary steps to ensure that your retirement is exactly how you want it to be.
Preparing For Retirement
One of the main steps involved in early retirement planning involves created a savings plan that will continually gain interest. As you put money into this savings plan, you will be taxed on the interest that the savings account gains over time. This means that you won’t be taxed for the money when you withdraw it from the account later because you have already paid taxes on the interest income. Residents of Pennsylvania often use these savings accounts in their retirement planning strategies, and you can also utilize individual retirement accounts with your planning.
You can and should put money into your individual retirement account (IRA) as much as possible. IRAs are investment accounts that allow your retirement savings to grow faster because of tax advantages. These accounts always grow tax-deferred and qualified Roth distributions may be tax-free. Other retirement plans such as 401(k)s and 403(b) plans are also wise because it is important to diversify. Diversity in a portfolio can continue to bring about a consistent income even when you stop working, and it also allows you to continue investing once you are retired.
Although our firm does not advise clients on investment strategies, we can help you determine the most advantageous ways to structure your retirement plan in order to best achieve their retirement estate planning objectives. Your estate planning documents, such as wills and trusts, will not control the disposition of your assets in your retirement plan and it is important to seek counsel and guidance from a legal professional who has extensive experience with retirement planning.
Types Of Retirement Plans
It is never too early to plan for retirement, and there are hosts of different retirement plans that you may want to evaluate and determine whether or not you want to try these different options. Some of them are offered by employers, such as 401(k) plans and 403(b) plans. Most retirement plans are not taxed, and are put into a tax-deferred account that is taxable upon receipt in retirement. This arrangement both encourages and aids men and women who want to save their finances for the future.
IRAs or Individual Retirement Arrangements are popular retirement savings plans that allow people to put money away for the future. There are Traditional IRAs and Roth IRAs so you will want to determine which account you would like to maintain. Employers may provide you with a SEP IRA or a SIMPLE IRA. You can also save for retirement using a deferred annuity. This is a contract that is issued by a life insurance policy and can be purchased during a person’s years while working and used to save for retirement with the tax-deferred benefits. Some people also use investments as a type of retirement plan, hoping that they can use their future earnings when they are in retirement. While this may be a noble or enjoyable endeavor, you should not bypass the opportunity to save for retirement. If an investment were to fall through, this could be tragic for your retirement plans.
Call A Pittsburgh Estate Planning Attorney For Help
When you call Temple & Frayer Law Office, our team will work closely with you to make beneficiary designations that are in accordance with your estate planning documents. This will help to ensure that your goals and objectives for your estate planning will be met. If these beneficiary designations are not created with an understanding of the IRS rules and regulations, then the payments to beneficiaries may not be paid out as you wish. In some cases, the payments to beneficiaries have to be accelerated and paid out completely within five years after death. Proper estate planning can help you avoid this so that payments from your retirement plans may be stretched out over the life of your children and grandchildren. This will lower the applicable income taxes for them and defer the massive income taxes that would come if all of the payments were to be paid up front.
Whatever your situation may be, we are confident that you will benefit from the help of a Pittsburgh estate planning lawyer. We have extensive experience in this area of the law and have helped a wide range of clients over the years, so call now and schedule a consultation! The firm will sit down with you and guide you through the retirement savings process. Because there are many details to this process, and a lot of vital information can fall through the cracks if you are trying to determine which retirement plan works best for you on your own. You shouldn’t hesitate to contact a lawyer at the firm today for more information by calling 412-998-1197!