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Winning the lottery may be the dream way to launch a successful retirement, but in reality, financial security for your golden years requires some planning. The good news is that there are plenty of programs and resources available to help streamline your strategy for post-professional bliss. Offering first-rate financial services in Pagosa Springs, CO, Wilson, Rea, Beckel & Associates CPAs LLC outlines a few basic tips for getting on the right path to retirement.

3 Tips for Using Financial Services to Build a Rewarding Retirement

1. Start Today, Forecast for Tomorrow

If you aren’t saving for retirement yet, there’s no time like the present to get started. Even if the payout date is decades into the future or you don’t have much room in your budget for a contribution, giving a little goes a long way. Thanks to compounded interest, small amounts put in today can multiply in value over the years.

financial servicesAs your finances become more flexible, you’ll be able to grow your contributions toward an amount that satisfies your end goal. But how exactly do you figure that out? In general, accounting professionals recommend stocking up enough to cover your needs until you’re 100 years old. To come up with a savings target, take about 70 to 80% of your current income and multiply by the number of years you plan on being retired (i.e. 35 years).

2. Maximize Contributions

Once you choose a preferred retirement vehicle — such as a 401k or IRA account — figure out how much you can contribute to on an annual basis. To get the most financial benefit, aim to give all or most of the maximum amount.

If you’re using an employer-sponsored matched 401k plan, giving more will increase the contribution amount from your workplace. With a traditional IRA, depositing more will allow you to lower your current tax burden. Or, if you choose a Roth IRA, you can make taxable contributions now, watch your money grow, and make withdrawals tax-free when retirement comes.

3. Practice Patience

Retirement planning is all about the long-term end goal, so it’s easy to become discouraged in the early phases of saving when interest gains seem non-existent to minimal at best. However, its critical to leave the money where it is, as early withdrawal is subject to steep penalty fees. To avoid the risk of making a withdrawal in moments of pressure, set up a separate savings account that can be used in financial emergencies.

While making the decision to start or improve your retirement planning is critical to long-term financial security, you don’t have to navigate these choices by yourself. Serving the Pagosa Springs, CO, community for more than 15 years, the accounting experts at Wilson, Rea, Beckel & Associates CPAs LLC have the expertise to help. Through their financial services, this firm will help you shape your retirement goals and develop a strategy to help achieve them. Learn more about these services online or call (970) 731-1040 to setup a consultation.

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