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Retirement Planning Services Amesbury 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 Amesbury, MA listed below that can explain more and even get you started on your retirement savings.

George Paquin
Resolute Financial, LLC
(978) 463-8771
102G State Street
Newburyport, MA
Expertises
Insurance Related Issues, including Annuities, Ongoing Investment Management, Socially Responsible Investments, Tax Planning
Certifications
NAPFA Registered Financial Advisor, CFP®, EA, MBA

Robert Ryan
Resolute Financial, LLC
(978) 463-8771
102G State Street
Newburyport, MA
Expertises
Ongoing Investment Management, Estate & Generational Planning Issues, Insurance Related Issues, including Annuities, Advising Medical Professionals, Retirement Planning & Distribution Rules
Certifications
NAPFA Registered Financial Advisor, CEBS, CFP®, ChFc, JD, MSFP

Warren Mackensen
Mackensen & Company, Inc.
(603) 926-1775
6 Merrill Drive
Hampton, NH
Expertises
Helping Clients Identify & Achieve Goals, Tax Planning, Ongoing Investment Management, Retirement Planning & Distribution Rules, Financial Issues Between Generations, Estate & Generational Planning Issues
Certifications
NAPFA Registered Financial Advisor, BS, CFP®, MBA, MS

Howard Cadwell
Northeast Passage Financial Advisors
(603) 772-8729
One Liberty Lane East
Hampton, NH
Expertises
Ongoing Investment Management, Retirement Plan Investment Advice, Special Needs Planning, College/Education Planning, Financial Issues Between Generations, Helping Clients Identify & Achieve Goals
Certifications
NAPFA Registered Financial Advisor, AIF, CFP®, MHA

Maureen Demers
Demers Financial Planning LLC
(978) 494-4337
75 Merrimack Road
Methuen, MA
Expertises
Investment Advice without Ongoing Management, Middle Income Client Needs, Retirement Planning & Distribution Rules, Hourly Financial Planning Services, Helping Clients Identify & Achieve Goals, Ongoing Investment Management
Certifications
NAPFA Registered Financial Advisor, CFP®

Donald Askey
Provident Advisory Group
(978) 225-1400
66 Storey Avenue
Newburyport, MA
Expertises
Helping Clients Identify & Achieve Goals, Ongoing Investment Management, Retirement Plan Investment Advice, Retirement Planning & Distribution Rules, Hourly Financial Planning Services
Certifications
NAPFA Registered Financial Advisor, CFP®

Charles Johnson
Resolute Financial, LLC
(978) 463-8771
102G State Street
Newburyport, MA
Expertises
Planning Issues for Business Owners, Helping Clients Identify & Achieve Goals, Retirement Plan Investment Advice, Real Estate Investments, College/Education Planning, Socially Responsible Investments
Certifications
NAPFA Registered Financial Advisor, CFP®

David Mayes
Mackensen & Company, Inc.
(603) 926-1775
6 Merrill Drive
Hampton, NH
Expertises
Retirement Planning & Distribution Rules, Advising Medical Professionals, Planning Concerns for Corporate Executives, Professional Athletes or Entertainers, Divorce Planning, Tax Planning
Certifications
NAPFA Registered Financial Advisor, CFP®, CRPC, EA, MA

Paul Pignone
Boston Retirement Advisors, LLC
(603) 896-6400
85 Stiles Road, Suite 202
Salem, NH
Expertises
Ongoing Investment Management, Retirement Plan Investment Advice, Retirement Planning & Distribution Rules, Hourly Financial Planning Services, High Net Worth Client Needs, Middle Income Client Needs
Certifications
NAPFA Registered Financial Advisor, AIF, CFP®, ChFc, CLU, CSA

William Simpson
Azimuth Financial Planning, LLC
(603) 373-8793
One New Hampshire Avenue, Suite 125
Portsmouth, NH
Expertises
Ongoing Investment Management, College/Education Planning, Hourly Financial Planning Services, Retirement Planning & Distribution Rules, High Net Worth Client Needs, Investment Advice without Ongoing Management
Certifications
NAPFA Registered Financial Advisor, BS, CFP®, MBA

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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