Saving for Your Retirement

When it comes to saving for your future, it’s never too early to begin. You can start out with a savings account and move on to an IRA or other retirement accounts. A good time to start might be when you get that first big job. Learning to budget your money early will certainly work out for your future savings and retirement.

If you begin saving for your future in your 20’s you will have a sufficient amount saved by the time you’re ready to retire. However, don’t just leave your money in a savings or investments that aren’t working for you and just forget about it. Be sure to review your assets at least once a year to make sure they are earning for you and not just idol earning nothing.

Does your employer offers a 401k plan and matches a certain amount? Why not take advantage of the free money by investing at least the full matched amounts. The amount that you contribute to your retirement plan is deducted before taxes and will reduce your taxable income.

The retirement plan contribution limits for 2016 are $18,000 to your 401(k), plus another $6,000 if you're celebrating your 50th or older birthday during 2016. You can save up to $12,500 in your SIMPLE account this year, plus another $3,000 if you're age 50 or over.

At Summit CPA we can assist you with all of your financial needs. Contact our office at (855) 977-7623 to schedule an appointment with our Virtual CFO.