Retirement planning

The most important thing you can do to help secure a financial future that aligns with your goals is to begin retirement planning today. Retirement planning involves analyzing your financial objectives, current financial position, and expected future cash flows to develop a comprehensive retirement roadmap. A Simmons Investment Services advisor can guide you to the options that aim to help support and enhance your overall investment and tax strategies.

Individual Retirement Accounts (IRAs)

Traditional, Roth, and rollover IRAs each have their own advantages as well as certain restrictions. While traditional IRAs often allow tax-deductible contributions and offer tax-deferred earnings, Roth IRAs are funded with after-tax dollars and allow earnings to be withdrawn tax free after age 59 1/2, provided the account has been open for at least five years. Another option is a rollover IRA which is used strictly to convert funds from qualified retirement or pension plans without assuming current tax liability. With so many choices, choosing the right IRA for your needs takes careful research and consideration.

Employer-sponsored plans

Contributing to a qualified retirement plan such as a 401(k), provided by your employer, can be a great way to set aside pre-tax dollars for retirement. Although you may not have a choice about the type of retirement plan your employer offers, you can choose whether or not to invest in these plans and how to do so. Each plan has a range of investment options and distribution considerations to keep in mind when choosing the right plan for you. Even if you're the sole proprietor in your own business, an Individual(k) is a cost-effective 401(k)/profit sharing plan for small business owners that may be a useful way to save for the future while taking advantage of tax benefits today.