Financial Planning
What are you doing to plan for your own retirement?
Consider This...
What happens to 100 Americans by the time they reach 65?
(Source: U.S. Department of Health and Human Services. SSA Pub. #1311871, 6/90)
What could $350 per month be worth?
These figures are for hypothetical purposes only and do not represent an investment in any specific product.
| # Years | Total Invested | End Value | ||
|---|---|---|---|---|
| at 4% | at 6% | at 8% | ||
| 5 | $21,000 | $23,238 | $24,438 | $25,695 |
| 10 | $42,000 | $51,512 | $57,143 | $63,449 |
| 20 | $84,000 | $127,761 | $159,476 | $200,431 |
| 30 | $126,000 | $240,630 | $342,740 | $496,165 |
| 40 | $168,000 | $407,703 | $670,937 | $1,134,631 |
Ok, but I'm young. I'll start investing in a few years.
The cost of waiting...
...1 Day......................$101
...1 Month...............$3,081
...1 Year...............$36,974
Figures based on a 30 year old person, expecting to retire at age 65, at a $100 per week contribution level and a 6% pre-tax rate of return.
Investing Options
IRAs
IRAs have long been a great way to plan for retirement. There are currently two types of IRAs - Traditional and ROTH.
Traditional IRAs allow for tax-deferred savings by allowing you to invest pre-tax dollars that are taxed upon withdrawal at your then current income tax rate. In some cases this may be a preferred method as your income at retirement will likely be lower, causing your tax bracket at retirement to be lower.
ROTH IRAs are basically the opposite of Traditional IRAs. You invest after-tax dollars and the investment grows tax free. There are typically no additional taxes upon withdrawal as the taxes have already been paid before investment. Some people prefer ROTH IRAs because income tax rates have traditionally risen more often than not - thus paying the taxes now, on a smaller portion of money, may result in less taxes over all.
Annuities
Annuities - sometimes referred to as "upside down insurance policies" may be a great addition to your retirement planning strategies. Because they can be structured as Traditional and ROTH IRAs, Annuities can benefit the living with guaranteed income into retirement. Fixed-indexed Annuities (FIA) can be structured to offer a higher rate of return without the risk of investing directly into the stock market.
Please Contact Stellar Insurance Services to get quotes or more information.