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Retirement Planning Services Acton MA

It’s never too early to start your retirement planning. The sooner you start the more money you collect. It’s important to look for quality jobs that have benefits packages you can take full advantage of. A 401(k) is a retirement plan set up by employers that allows employees to defer or invest a portion of their income, pre-tax, to their retirement plan. Here you’ll find useful retirement tips that will definitely help you with your retirement planning. Please scroll down for more information and access to the retirement financial advisors in Acton, MA listed below that can explain more and even get you started on your retirement savings.

Kathleen Dollard
Nashoba Financial Planning
(978) 635-9687
1740 Massachusetts Avenue
Boxborough, MA
Expertises
Ongoing Investment Management, College/Education Planning, Retirement Planning & Distribution Rules, Tax Planning, Women's Financial Planning Issues
Certifications
NAPFA Registered Financial Advisor, BA, CFP®, EA, MBA

John Epeneter
C.A.R.E. Asset Management & Strategies, Inc.
(978) 897-0741
3 Russell Avenue
Maynard, MA
Expertises
Helping Clients Identify & Achieve Goals, Ongoing Investment Management, Tax Planning, Retirement Planning & Distribution Rules, College/Education Planning, Planning Issues for Business Owners
Certifications
NAPFA Registered Financial Advisor, CCPS, CFP®, CFS, CPA/PFS, MSFP

Thomas McFarland
The Darrow Company, Inc.
(978) 369-5144
801 Main Street, Suite 12
Concord, MA
Expertises
Ongoing Investment Management, Estate & Generational Planning Issues
Certifications
NAPFA Registered Financial Advisor, BS, CFP®

Katie Birmingham Weigel
Long Point Financial Planning
(978) 369-1664
747 Main Street
Concord, MA
Expertises
Retirement Plan Investment Advice, Ongoing Investment Management, Investment Advice without Ongoing Management, College/Education Planning, Women's Financial Planning Issues, Retirement Planning & Distribution Rules
Certifications
NAPFA Registered Financial Advisor, BA, CFP®, MS

Gayle Colman
Colman Knight Advisory Group LLC
(978) 371-2015
18 Audubon Lane
Carlisle, MA
Expertises
Cash Flow/Budgets/Credit Issues, Estate & Generational Planning Issues, Helping Clients Identify & Achieve Goals, High Net Worth Client Needs, Investment Advice without Ongoing Management, Planning Issues for Business Owners
Certifications
NAPFA Registered Financial Advisor, CFP®

David Linnard
Linnard Financial Management and Planning, Inc.
(978) 263-0025
46 Chester Road
Boxborough, MA
Expertises
Retirement Planning & Distribution Rules, Ongoing Investment Management, Retirement Plan Investment Advice, Helping Clients Identify & Achieve Goals
Certifications
NAPFA Registered Financial Advisor, BS, CFP®, MBA

Patricia Konetzny
The Practical Planner
(978) 461-4932
9 Marlboro Street
Maynard, MA
Expertises
Ongoing Investment Management, Helping Clients Identify & Achieve Goals, Women's Financial Planning Issues, Retirement Plan Investment Advice, Tax Planning
Certifications
NAPFA Registered Financial Advisor, CFP®, EA

David Bross
DS Bross Financial Advisory
(978) 318-7900
74 Junction Square Drive
Concord, MA
Expertises
Ongoing Investment Management, High Net Worth Client Needs, Helping Clients Identify & Achieve Goals, Tax Planning, Retirement Planning & Distribution Rules, Retirement Plan Investment Advice
Certifications
NAPFA Registered Financial Advisor, CFP®

David Carpenter
Carpenter Associates
(978) 952-8878
PO Box 791
Littleton, MA
Expertises
Ongoing Investment Management, Helping Clients Identify & Achieve Goals, Retirement Plan Investment Advice
Certifications
NAPFA Registered Financial Advisor, BBA, MPFP, MS, MST

Janice Swenor
Langtree Associates
(978) 874-0885
206 Ayer Road
Harvard, MA
Expertises
Ongoing Investment Management, Cash Flow/Budgets/Credit Issues, College/Education Planning, Middle Income Client Needs, Newlyweds & Novice Investors, Women's Financial Planning Issues
Certifications
NAPFA Registered Financial Advisor, CFP®, MBA, MS

Investing in 401(k)s and IRAs

By Christopher Stella

So it’s the first day of work and HR asks whether or not you want to open up a 401(k) retirement account. “Heaven’s to Betsy” you say in your most petulant grandfatherly voice: why the hell do I need a retirement account? Ahh…so you say that now. But what happens when you’re 50 years old and realize that had you contributed a measly $100 a month to an account earning a reasonably conservative 6% interest rate, you could have been sitting on a cool $120,000. Not exactly a chunk of change to shake a cane at. But there’s more. Firstly, each of those piddly $100 contributions is tax free, meaning that had you not deposited them into the account, you would have only received about $60 to spend. Secondly, your employer (depending on their level of altruism) will frequently match those contributions up to a certain amount (usually between $1,000 and $2,000 a year). So now you’re talking close to a quarter of a million dollars, half of which was free!!!! Alright, so there’s a little more to it than that, but that’s the basic gist.

Statistics show that you need about 75% of your pre-retirement income to maintain a similar standard of living. So if you're making $150,000 a year, retire at 60, and stick around until you're 90, you'll need to save over $3,000,000. Here's are two easy ways you can make you can make that happen.

What’s a 401(k)?

A 401(k) is a retirement plan set up by employers that allows employees to defer (or invest) a portion of their income, pre-tax, to their plan. For example, if you make $45,000 a year, and contribute $2,000 to our 401(k), then you will only be taxed on $43,000 of your salary at the end of the year. Taxes on $2,000 are paid later when you take out the money during retirement. So why bother contributing?

A 401(k) is like a savings account on steroids. Because your deferral is pre-tax, it means you have more money to contribute, and a larger account grows faster. Further, employers often “match” or contribute a percentage of your deferral as well.

But don’t think that this is just some cash give-away-free-for-all. There are rules. First, the money can’t be withdrawn before the age of 59.5, unless there is an extenuating circumstance, such as serious financial hardship or disability. Otherwise, early withdrawals are subject to a 10% penalty, paid to the IRS. However, if you need to withdraw the money, as a result of the tax deferment on interest, the penalty isn’t significant. If your employer is also matching your funds, then the penalty is negligible.

The maximum current amount that can be invested each year is $15,000, as stated by the IRS. However, that number changes pretty regularly so check with your employer to figure out what the exact numbers are. But what if you leave your job? Well, it doesn’t really matter. You get to keep everything you’ve put in your account plus whatever portion of the money your employer has matched. And there are no penalt...

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