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Retirement Planning Services New Castle DE

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 New Castle, DE listed below that can explain more and even get you started on your retirement savings.

Joan Sharp
Life Strategies, LLC
(302) 324-5363
42 Read's Way, New Castle Corp. Commons
New Castle, DE
Expertises
Helping Clients Identify & Achieve Goals, Newlyweds & Novice Investors, Special Needs Planning, Planning Issues for Unmarried & Same-Sex Couples, Women's Financial Planning Issues
Certifications
NAPFA Registered Financial Advisor, CAP, CFP®, ChFc, MSFS

Burwell Hutchinson
Fischer & Hutchinson Wealth Advisors, LLC
(302) 442-4233
5560 Kirkwood Highway
Wilmington, DE
Expertises
Ongoing Investment Management, Retirement Planning & Distribution Rules, Planning Concerns for Corporate Executives, Real Estate Investments, Estate & Generational Planning Issues, Tax Planning
Certifications
NAPFA Registered Financial Advisor, CFP®, CPA

Paul Baumbach
Mallard Advisors, LLC
(302) 737-4546
750 Barksdale Road, Suite 3
Newark, DE
Expertises
Ongoing Investment Management, Retirement Planning & Distribution Rules, Socially Responsible Investments
Certifications
NAPFA Registered Financial Advisor, BS, CFA, CFP®, ChFc, MS

Donald Nicholson
Donald W Nicholson & Associates, Ltd.
(302) 529-1500
1403 Silverside Road, Suite B
Wilmington, DE
Expertises
Financial Issues Between Generations, Retirement Plan Investment Advice, Retirement Planning & Distribution Rules, Women's Financial Planning Issues, Planning Issues for Business Owners, Helping Clients Identify & Achieve Goals
Certifications
NAPFA Registered Financial Advisor, AAMS, CFP®

William Heidig
FiscalWise, Inc.
(610) 891-7760
55 State Road, 2nd Floor
Media, PA
Expertises
Retirement Planning & Distribution Rules, Advising Entrepreneurs, Women's Financial Planning Issues, Advising Medical Professionals, Planning Issues for Business Owners, Ongoing Investment Management
Certifications
NAPFA Registered Financial Advisor, BS, CFP®, MBA

Kristofor Behn
Fieldstone Financial Management Group, LLC
(800) 888-5164
The Brandywine Building
Wilmington, DE
Expertises
Ongoing Investment Management, Retirement Planning & Distribution Rules, Planning Issues for Business Owners, Financial Issues Between Generations, Estate & Generational Planning Issues, College/Education Planning
Certifications
NAPFA Registered Financial Advisor, BS, CFP®

Vincent Schiavi
Schiavi + Dattani
(302) 994-4444
2710 Centerville Road, Suite 201
Wilmington, DE
Expertises
Retirement Planning & Distribution Rules, Estate & Generational Planning Issues, Ongoing Investment Management, Planning Concerns for Corporate Executives, Tax Planning
Certifications
NAPFA Registered Financial Advisor, BS, CFP®, CPA/PFS

William Starnes
Mallard Advisors, LLC
(302) 239-1654
1041 Valley Road
Hockessin, DE
Expertises
Ongoing Investment Management, Investment Advice without Ongoing Management, Retirement Planning & Distribution Rules, Tax Planning, Estate & Generational Planning Issues, Planning Issues for Business Owners
Certifications
NAPFA Registered Financial Advisor, BS, CFP®, ChFc, MST

Thomas Smedile
Swarthmore Financial Advisors, Ltd.
(610) 892-9922
10 Veterans Square, Second Floor
Media, PA
Expertises
Ongoing Investment Management, Estate & Generational Planning Issues, Retirement Planning & Distribution Rules
Certifications
NAPFA Registered Financial Advisor, CPA/PFS, MST

Alan Schapire
Libra Financial Planning
(610) 891-0762
280 N. Providence Road, Suite 100
Media, PA
Expertises
Investment Advice without Ongoing Management, Tax Planning, Hourly Financial Planning Services, Middle Income Client Needs, Retirement Planning & Distribution Rules, Helping Clients Identify & Achieve Goals
Certifications
NAPFA Registered Financial Advisor, CFP®, CPA/PFS, 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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