Connecticut elder law attorneys provide help with many important issues that you may not think of elder law attorneys assisting with. For example, an elder law attorney can help young people with making a financial plan including a retirement plan. Making a retirement plan when you are young is vital, because the power of compound interest makes it much easier for you to accomplish your savings goals if you invest when you’re young rather than if you wait until you are nearing retirement age. Nirenstein, Horowitz & Associates will assist young people in making a plan that is right for them.
When young people make a retirement plan, one of the key components of that plan should involve making investments in accounts that provide tax breaks. This could include a 401(k) if you have access to this workplace retirement account.
It also includes an IRA, which most young people can invest in regardless of whether or not their employer provides a workplace plan. Nirenstein, Horowitz & Associates can assist you with understanding what the rules are for investing in an IRA and why making this type of investment can benefit you. Give us a call to get started with your retirement planning when you’re young so you can achieve your financial goals.
Why Young People Should Invest in IRAs
Young people can invest in a traditional or Roth IRA, both of which provide tax benefits for making investments. If neither you or your spouse have a retirement plan at work, you should be able to invest in a traditional IRA even if your income is high. If either you or your husband or wife have a workplace retirement plan, you can invest in either a traditional or Roth IRA provided your income is not too high. A traditional IRA allows investments with pre-tax funds, while a Roth IRA allows you to invest with after-tax funds but make withdrawals without paying taxes, including on investment gains.
Because you may not have a very high income when you are young, you should be eligible to make IRA investments even if you might not be once you get older and your income increases. This is one key reason why you investing when you are younger makes sense. There are also annual contribution limits to both Roth and traditional IRAs. If you miss a year and do not max out your contributions, you won’t be able to make up that missed opportunity by contributing more later. If you start investing when you’re young and you don’t miss any years of contributing, you’ll get to take full advantage of tax-advantaged retirement investing. If you wait until you are older to start investing in an IRA, you give up many years of tax breaks.
Finally, investing in an IRA when you’re young allows you to take full advantage of compound interest to maximize the growth of your retirement assets.
USA Today reveals the amount of money that you must save each year if you hope to retire a millionaire by the average retirement age of 63. If you begin investing at age 20, you ned to save around $305 per month if you earn an average 7% rate of return and invest the same amount per month over the course of your career. If you waited until you were 30, however, you’d have to invest $647.64 per month in order to retire a millionaire. It is a lot easier to start at age 20 and keep investing $305 monthly for your entire working life than it would be to start saving later and have to invest double… or more. If you opt for a Roth IRA, you can enjoy all of this growth on your investments tax free.
Getting Help from Connecticut Elder Law Attorneys
Connecticut elder law attorneys at Nirenstein, Horowitz & Associates will provide comprehensive financial planning and retirement planning help to young people. If you are starting your career, do not make the mistake of thinking that an elder law attorney can only help older people. You have the opportunity to make smart investments in your future as a young person so you can achieve financial security even with making small annual investments. Our firm will help you to take advantage of that opportunity.
To find out how we can help you, join us for a free seminar. You can also give us a call at 860-548-1000 or contact us online to get started on making your personal retirement plan. Call today so you can start your investing and get on the path to financial freedom.