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Retirement Planning Services Dothan AL

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

Mr. James Calvin Ellis, CFP®
(334) 792-2153
PO Box 6356
Dothan, AL
Firm
McDaniel & Associates

Data Provided By:
John G Ruddock, CFP®
(334) 803-0376
303 Regency Ct.
Dothan, AL
Firm
LPL Financial

Data Provided By:
Mr. Ronald W Sommer, CFP®
(334) 671-0738
1643 Hartford Highway
Dothan, AL
Firm
Edward Jones Investments

Data Provided By:
Wells Fargo - Plaza North
(334) 712-1554
1943 Reeves St
Dothan, AL
Type
Branch
Office Hours
Mon-Thu 09:00 AM-04:00 PM
Fri 09:00 AM-06:00 PM
Sat-Sun Closed

Wells Fargo - Northside
(334) 677-5457
3051 Montgomery Hwy
Dothan, AL
Type
Branch
Office Hours
Mon-Thu 08:00 AM-05:00 PM
Fri 08:00 AM-06:00 PM
Sat-Sun Closed

Mr. K. Michael Woodham, CFP®
(800) 920-5208
256 Honeysuckle Rd Ste 25
Dothan, AL
Firm
Wells Fargo Advisors Financial Network
Areas of Specialization
Asset Allocation, Divorce Issues, Education Planning, Elder Care, Estate Planning, General Financial Planning, Insurance Planning
Key Considerations
Average Net Worth: $500,001 - $1,000,000

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



Data Provided By:
Mr. Douglas W. Lee, CFP®
(334) 671-7303
200 Parkwest Cir Ste 3
Dothan, AL
Firm
Morgan Keegan and Co., Inc.
Areas of Specialization
Investment Management
Key Considerations
Average Net Worth: $500,001 - $1,000,000

Average Income: $50,001 - $100,000



Data Provided By:
Mr. Donald P. Bolden, CFP®
(334) 673-8600
2216 W Main St
Dothan, AL
Firm
CapSouth Partners, Inc.
Areas of Specialization
Asset Allocation, Budget Development, Business Succession Planning, Charitable Giving, Comprehensive Financial Planning, Debt Management, Divorce Issues
Key Considerations
Average Net Worth: Not Applicable



Data Provided By:
Wells Fargo - Downtown
(334) 678-0203
125 N Saint Andrews St
Dothan, AL
Type
Branch
Office Hours
Mon-Thu 09:00 AM-04:00 PM
Fri 09:00 AM-06:00 PM
Sat-Sun Closed

Wells Fargo - West Main
(334) 677-5697
1315 W Main St
Dothan, AL
Type
Branch
Office Hours
Mon-Thu 09:00 AM-04:00 PM
Fri 09:00 AM-06:00 PM
Sat-Sun Closed

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...

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