Gaughan & Connealy provides comprehensive advice on retirement planning and IRA accounts. Whether you are already retired or you are looking ahead to the future, we can offer the financial and legal advice you need to have enough money to enjoy retirement in your golden years.
IRA and retirement planning is focused on setting goals, setting aside funds, choosing the right types of investment accounts, and protecting your assets. Knowing the rules for IRA investments and mandatory withdrawals from retirement accounts is just the start of planing for a secure retirement. Give our legal team a call today to find out the essentials you need to know to create a plan and to get answers to questions including:
- What do I need to know about IRA and retirement planning?
- What should be a part of my plan for retirement?
- How can a Kansas City or Overland Park IRA & retirement planning lawyer help me?
What You Need to Know About IRA and Retirement Planning
The majority of people in the United States do not have enough money saved for retirement. Traditionally, people were supported in their golden years by three primary sources of income (sometimes dubbed the “three legged stool”). These three sources of income included an employer pension, Social Security, and private savings.
Today, there are few employers who offer defined benefits pension plans where workers are guaranteed a set amount of money until their death. Defined benefit pension plans that do exist are being cut nationwide, with some retirees receiving pennies on the dollar because their pension fund has gone bankrupt. There are concerns about the long-term viability of Social Security as well. This means personal savings has become more important than ever.
Individual Retirement Accounts, or IRAs, are one option to help people to make the most of their savings. There are different types of IRAs, including traditional IRAs, Roth IRAs, SEP IRAs, and Simple IRAs. Some of these IRAs are limited to people who are self-employed or who have non-wage income, but both traditional and Roth IRAs are open to almost anyone who wishes to make an investment. However, there are annual contribution limits and there are also income limits on who can put money into an IRA tax-free. It is important to understand these limitations and to make the most of your opportunity to invest.
Because you are permitted to invest a set amount in an IRA each year, it is beneficial to begin investing as early as possible. If you miss a year of putting away the maximum in an IRA, you will never get back the lost chance to invest for your retirement with pre-tax dollars. Beginning your investment program early also allows you to take full advantage of compound interest so it is easier to amass the money that you need to retire comfortably.
What Should Be a Part of Your Plan for Retirement?
When you work with a retirement planning lawyer, you will discuss your current financial situation as well as your goals for your future. Your attorney can help you to determine how much you need to save based on your current age, desired retirement age, and desired income levels during your retirement. Your attorney will also assist you in determining how best to structure your savings using IRAs and other accounts that may be available to you and that provide a tax benefit. Finally, you will consider asset protection plans in order to make certain that the money you are saving for retirement and that the property you are acquiring over the course of your life will be safe.
An experienced retirement planning lawyer can also provide other assistance in selecting the type of investments that are best for you, and in exploring the rules for withdrawing retirement funds as you age. For most types of retirement accounts, mandatory withdrawals are required at a certain age. Seniors must be aware of what the rules are for withdrawing money and must also ensure they are careful about not taking out too much of the balance of their accounts so they do not run out of money too early.
How Can an Overland Park or Kansas City Retirement Planning Lawyer Help You?
Gaughan & Connealy has helped many people of all age groups to plan for a secure retirement in Overland Park, Kansas City, and surrounding areas in Kansas and Missouri. To learn more about the ways in which our retirement planning lawyers can help you prepare for the future, give us a call.