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Retirement Planning Services Mitchell SD

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

Mr. Michael L. Lebrun, CFP®
(605) 996-7171
1716 N Sanborn Blvd
Mitchell, SD
Firm
Dice Financial Services Group
Areas of Specialization
Asset Allocation, Education Planning, Employee and Employer Plan Benefits, Estate Planning, Healthcare Planning, Insurance Planning, Investment Management

Data Provided By:
Mr. Robert E. Young, CFP®
(605) 996-5910
719 N Main St
Mitchell, SD
Firm
Raymond James Financial Serv

Data Provided By:
Wells Fargo - Mitchell
(605) 995-3500
403 N Lawler St
Mitchell, SD
Type
Branch
Office Hours
Mon-Fri 08:30 AM-05:00 PM
Sat 08:30 AM-12:00 PM
Sun Closed

Richard Kahler
Kahler Financial Group
(605) 343-1400
1010 9th Street, Suite 1
Rapid City, SD
Expertises
Real Estate Investments, Ongoing Investment Management, Helping Clients Identify & Achieve Goals, High Net Worth Client Needs, Retirement Planning & Distribution Rules, Planning Issues for Business Owners
Certifications
NAPFA Registered Financial Advisor, CFP®, ChFc, MSFP

Mr. David D. Brandt, CFP®
(605) 336-0935
622 S Minnesota Ave
Sioux Falls, SD
Firm
Brandt Solomon & Anderson LLP
Areas of Specialization
Accounting, Asset Allocation, Business Succession Planning, Comprehensive Financial Planning, Divorce Issues, Education Planning, Estate Planning

Data Provided By:
Mr. Jerauld J. Garry, CFP®
(605) 996-7171
321 W 14th Ave
Mitchell, SD
Firm
Dice Financial Services Group

Data Provided By:
Mr. Thomas J. Dice, CFP®
(605) 996-7171
1716 N Sanborn Blvd
Mitchell, SD
Firm
Dice Finl Svcs Group

Data Provided By:
US Bank - Mitchell SD Office
(605) 996-5814
1421 N Main
Mitchell, SD
Drive Up Hours
Mon 08:30 am to 05:30 pm
Tue 08:30 am to 05:30 pm
Wed 08:30 am to 05:30 pm
Thur 08:30 am to 05:30 pm
Fri 08:30 am to 05:30 pm
Sat 09:00 am to 12:00 pm

Mr. David W. Schmidt, CFP®
(605) 342-5434
2834 Jackson Blvd
Rapid City, SD
Firm
Dave Schmidt Insurance Agency,

Data Provided By:
Darin Philip Glanzer, CFP®
(605) 373-8800
26605 Caley Cir
Brandon, SD
Firm
Focus Financial
Areas of Specialization
General Financial Planning, Insurance Planning, Investment Management, Retirement Planning, Young Professionals
Key Considerations
Average Net Worth: $250,001 - $500,000

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



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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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