NETWORK WITH US

Retirement Planning Services Barre VT

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

Jamie Milne
Milne Financial Planning, Inc.
(802) 476-0602
51 Church Street
Barre, VT
Expertises
Retirement Planning & Distribution Rules, Middle Income Client Needs, Ongoing Investment Management, Socially Responsible Investments, Investment Advice without Ongoing Management, Divorce Planning
Certifications
NAPFA Registered Financial Advisor, BS, CDFA, CFP®, MBA

Joseph P Preddy, CFP®
(802) 479-0645
316 North Main Street
Barre, VT
Firm
Community Financial Services Group, LLC
Areas of Specialization
Asset Allocation, Comprehensive Financial Planning, Education Planning, Employee and Employer Plan Benefits, Estate Planning, General Financial Planning, Investment Management
Key Considerations
Average Net Worth: $500,001 - $1,000,000

Average Income: $100,001 - $250,000

Profession: Not Applicable

Data Provided By:
Mr. Lee A. White, CFP®
(802) 476-6191
86 Summer St
Barre, VT
Firm
Lee A White & Associates

Data Provided By:
Mr. John A. Farrow, CFP®
(802) 728-4287
283 Boudro Rd
Randolph Center, VT
Firm
Farrow Financial Inc

Data Provided By:
TD Bank
(802) 479-3313
Depot Square
Barre, VT
Type
Branch
Drive Up Hours
Mon-Fri 8:00-6:00
Sat 8:00-1:00

Joyce Cole
J. Cole Financial Advisers, Inc.
(802) 225-1314
30 Center Road
Montpelier, VT
Expertises
Ongoing Investment Management, Financial Issues Between Generations, Socially Responsible Investments, Helping Clients Identify & Achieve Goals, Hourly Financial Planning Services, Charitable Giving - Trusts & Foundations
Certifications
NAPFA Registered Financial Advisor, BS, CFP®

Mr. William E. Patno Ii, CFP®
162 N Main St Ste 200
Barre, VT
Firm
Granite Financial Group

Data Provided By:
Mr. Michael Scott Pinkans, CFP®
(802) 272-6390
80 Osborne Rd
Barre, VT
Firm
Zenith Marketing Group, Inc.
Areas of Specialization
Asset Allocation, Business Succession Planning, Charitable Giving, Employee and Employer Plan Benefits, Estate Planning, Insurance Planning, Investment Management

Data Provided By:
Mr. Mark C. Giometti, CFP®
(781) 729-2031
147 Sugarbush Woods Rd
Warren, VT
Firm
Black Diamond Financial Planning, LLC

Data Provided By:
TD Bank
(802) 371-1622
School Street and Main Street
Montpelier, VT
Type
Branch
Office Hours
Mon-Fri 8:00-6:00
Sat 8:00-1:00
Drive Up Hours
Mon-Fri 8:00-6:00
Sat 8:00-1:00

Data Provided By:

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...

Click here to read the rest of this article from Gradspot.com

©2010 Gradspot LLC