One of your main financial goals is likely to retire comfortably, whether it’s earlier than expected or with a few extra luxuries. If you own a business, you can be confident that your employees have the same goal. Therefore, setting up a retirement plan for your business and yourself should become a priority. At Nesso Tax, we specialize in retirement planning for Meriden and surrounding areas of Connecticut. Our experienced tax professionals will work with you to understand your unique situation and craft a plan that makes the most sense for you. Contact us today to learn more about our tax services.
What Is Retirement Planning, and Key Takeaways
Retirement planning is preparing for retirement by evaluating your current financial situation and developing a plan to fund your post-career lifestyle. It includes determining how much money you need to save to live comfortably during retirement and other considerations such as investments, Social Security benefits, and tax strategies. Ultimately, your goal should be to preserve and grow your wealth so that it can provide for you in the future.
Contrary to what some may think, you don’t need to be wealthy to benefit from retirement planning; anyone can do it to ensure financial security. In business, setting up a retirement plan for you and your employees can help attract and retain top talent and increase loyalty.
Regarding retirement planning, here are some key takeaways for you and your team members to remember:
- Define Your Goals: Think about what you want to achieve before planning your retirement. Take your time and be realistic, as this step will guide the rest of your planning.
- Start Early: The earlier you start, the more time your investments can grow and the less stress you’ll have.
- Know Your Risk And Investment Preferences: Consider how much risk you’re comfortable taking and what investments work best for your goals.
- Work With Professionals: Experienced financial advisors in Meriden, like our team at Nesso Tax, can educate you on your options and simplify the process significantly.
- Retirement Planning Isn’t A One-Time Thing: As your life changes, so should your retirement plan. Revisit it regularly to ensure you’re still on track for the future.
Understanding Retirement Planning
Being prepared for retirement requires making financial and non-financial decisions today that will pay off in the future. Financially, it would be best to start setting aside money in a retirement account that will grow through investments. There are various types of retirement plans available, which we’ll discuss next. The non-financial aspects of retirement planning are just as important. For example, you should decide where to live, what activities or hobbies you want to pursue, and when to quit working.
The emphasis on retirement planning can vary depending on your age. For instance:
- Younger individuals starting their careers should focus on building a solid financial foundation and saving money.
- Midlife professionals may want to start taking advantage of employer matches or investing more aggressively.
- Individuals close to retirement go from accumulating wealth to preserving it, managing risk, and preparing for the next generation.
Benefits of Setting Up a Retirement Plan
While each type of retirement plan has unique benefits, setting one up has some universal advantages. These include, but aren’t limited to, the following:
One of the most attractive perks of a retirement plan is its ability to reduce your taxes. The more funds you set aside in your account, the less tax money you’ll have to pay out. The reason is that most retirement plans allow contributions and earnings to grow tax-deferred. In other words, you don’t pay taxes on the accruing interest until you take withdrawals in retirement. We’ll help you and your team members make smart investments to save money for the future without worrying about taxes.
Creating an Income Stream
Once you quit working altogether, you’ll need an income stream to live comfortably. Retirement plans can provide a steady source of money, allowing you to enjoy your accustomed lifestyle. When you retire and begin taking withdrawals, your funds will be available to cover your living expenses. With proper planning, you can enjoy financial security for decades after retirement.
Retirement plans can help business owners attract and retain top talent. You’re encouraging team members to stay long-term by making them feel they’re taken care of and that their future is secure. A quality retirement plan can also be a valuable recruiting tool for new hires prioritizing financial security when considering job opportunities.
Protecting Your Assets
You can further protect your investment portfolio by setting aside some funds in an IRA. IRAs, 401(k)s, and other retirement plans aren’t subject to creditors or lawsuits. Legally, no one other than the account holder can touch these funds in the event of financial hardship. You’ve worked hard for your money, and protecting it from these threats is an intelligent move.
Leaving a Legacy
Retirement planning isn’t just about preparing for the future; it’s also about passing on your legacy to those you love most. Through estate planning, you can name beneficiaries who will inherit portions of your accounts after death — allowing them to benefit from the investments that you made throughout life.
Types of Retirement Plans – Services We Offer
Nesso Tax understands the different types of retirement plans available. We can help you decide which plan is best for you or your business and proceed accordingly.
A self-employed 401(k) is an individual retirement account that allows you to invest in retirement funds even if you have no employees. It starts by setting up a 401(k) plan, a company-sponsored retirement plan that allows employees to invest money through pre-tax contributions. If your business is one of the companies allowed to set up a self-employed 401(k) plan, our team can help you get started.
Simplified Employee Pension Plans (SEP IRAs)
A Simplified Employee Pension (SEP) is a type of retirement plan a self-employed business owner can set up. It’s an easy and cost-effective plan for the business owner, as there aren’t as many administrative requirements. The main difference between a SEP IRA and a traditional IRA is that the employer (the business owner) contributes to each team member’s retirement account rather than the employee.
Simple IRA plans are retirement savings accounts that offer business owners with less than 100 employees a way to save for retirement. The idea behind a Simple IRA is that employees can choose to contribute to the account without having to worry about limits, investment requirements, and other things that may be confusing. The employer must also contribute, but the limit is much lower than a traditional 401(k).
To set up an Investment Only account, you must open a self-directed retirement account and contribute to it over time. If you’re self-employed and confused about what to do with your money, consider investing in an Investment Only account. You’ll have complete control over your investments with it. You can choose the funds that you want to put into your retirement.
Why Choose the Nesso Group
Our Long-Term Vision
One of the key advantages of working with the Nesso Group is our long-term vision. We understand that success isn’t just about today but also about tomorrow. More than providing immediate solutions, we focus on helping our clients lay the foundations for a sustainable future.
- Be Excited To Be Here: We genuinely care about our clients and show it through our desire to assist them in pursuing their goals.
- Be a Good Steward: We believe in taking an active role in our client’s success stories by giving them honest advice and walking with them every step.
- Be Supportive and Positive: We’re committed to creating a positive and uplifting environment that encourages our clients.
- Be Servant-Minded: At the Nesso Group, our team prioritizes our client’s interests and needs. We strive to deliver the best service possible.
- Be Humble and Genuine: When working with the Nesso Group, you can expect an honest and authentic relationship built on trust.
- Be Passionate To Grow: We value the importance of growth and development for our clients and ourselves. We focus on ongoing learning to guarantee we’re constantly getting better.
Our Proven Process
Because we realize how complex retirement planning can be, we’ve developed a proven process to maximize the effectiveness of our services. We begin by setting up a consultation and getting to know you and your business, allowing us to understand the nuances of your particular situation.
From there, we design a comprehensive proposal tailored to your specific needs. We can explain it to you and your team members and discuss different strategies to optimize your savings. Finally, our team will work with you to implement the plan, ensuring your business can maximize its potential. Once the plan is in place, we’ll monitor its progress and suggest necessary changes or adjustments.
Prepare for Retirement with Our Financial Management in Meriden
Are you looking for retirement planning in Meriden? Nesso Tax’s got you covered. The best thing to do is to schedule a consultation with one of our tax experts. We’ll explain all the details about our retirement plans, talk with you about your goals, and go over the options available in Connecticut. Our work doesn’t end once you’ve signed up for a plan. We’ll provide ongoing support and guidance, monitoring your account and guaranteeing everything is on track. Contact the Nesso Group today to receive superior financial services in Meriden.