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Retirement Planning Services Algonquin IL

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 Algonquin, IL listed below that can explain more and even get you started on your retirement savings.

Brian Conroy
SAVANT Capital Management, Inc.
(847) 969-0600
2300 North Barrington Road
Hoffman Estates, IL
Expertises
Ongoing Investment Management, Advising Medical Professionals, Retirement Planning & Distribution Rules
Certifications
NAPFA Registered Financial Advisor, CFP®

Carin Pankros Roman
CCP, Inc.
(847) 303-1220
4801 Emerson Avenue Ste. 106
Palatine, IL
Expertises
Ongoing Investment Management, Planning Concerns for Corporate Executives, Helping Clients Identify & Achieve Goals, College/Education Planning
Certifications
NAPFA Registered Financial Advisor, CFP®

Carol Pankros
CCP, Inc.
(847) 303-1220
4801 Emerson Avenue Ste. 106
Palatine, IL
Expertises
Ongoing Investment Management, Charitable Giving - Trusts & Foundations, Retirement Planning & Distribution Rules
Certifications
NAPFA Registered Financial Advisor, BS, CFP®, MS

David Theis
Fee-Only Financial Advisors, Ltd.
(847) 359-3300
116 East Slade Street
Palatine, IL
Expertises
Financial Issues Between Generations, Ongoing Investment Management, Retirement Planning & Distribution Rules
Certifications
NAPFA Registered Financial Advisor, BS, CFP®, CSA

Brenda Knox
Financial Elements, Inc.
(847) 496-4179
1861 Hicks Road, Suite D
Rolling Meadows, IL
Expertises
Newlyweds & Novice Investors, College/Education Planning, Cash Flow/Budgets/Credit Issues, Retirement Plan Investment Advice, Helping Clients Identify & Achieve Goals, Ongoing Investment Management
Certifications
NAPFA Registered Financial Advisor, BS, CFP®

Michael Kabarec
Kabarec Financial Advisors, Ltd.
(847) 934-7777
220 North Smith Street, Suite 220
Palatine, IL
Expertises
Planning Concerns for Corporate Executives, Advising Medical Professionals, Ongoing Investment Management, Retirement Planning & Distribution Rules, Tax Planning
Certifications
NAPFA Registered Financial Advisor, BS, CFP®, CPA/PFS, EA

Stacie Quigg
CCP, Inc.
(847) 303-1220
4801 Emerson Avenue Ste. 106
Palatine, IL
Expertises
Ongoing Investment Management, Helping Clients Identify & Achieve Goals, College/Education Planning
Certifications
NAPFA Registered Financial Advisor, CFP®

Kirk Hackbarth
Kabarec Financial Advisors, Ltd.
(847) 934-7777
220 North Smith Street, Suite 220
Palatine, IL
Expertises
High Net Worth Client Needs, Planning Concerns for Corporate Executives, Ongoing Investment Management, Alternative or Private Investments, Tax Planning, Retirement Planning & Distribution Rules
Certifications
NAPFA Registered Financial Advisor, CFP®, CPA/PFS

Cheryl Krueger
Growing Fortunes Financial Partners, LLC
(847) 230-9636
1821 Walden Office Square, Suite 400
Schaumburg, IL
Expertises
Helping Clients Identify & Achieve Goals, Hourly Financial Planning Services, Middle Income Client Needs, Women's Financial Planning Issues, College/Education Planning, Retirement Planning & Distribution Rules
Certifications
NAPFA Registered Financial Advisor, BS, CFP®

Craig Larsen
AHC Advisors, Inc.
(630) 762-8185
303 N. Second Street, Suite 24
St. Charles, IL
Expertises
Advising Medical Professionals, Estate & Generational Planning Issues, Helping Clients Identify & Achieve Goals, Planning Issues for Business Owners, Retirement Plan Investment Advice, Advising Entrepreneurs
Certifications
NAPFA Registered Financial Advisor, CFP®, ChFc

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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