Investors offer insight related to when to save for retirement, how much capital is required, the differences between stocks, bonds and mutual funds, and any relevant tax implications, as noted by CNN Money. Fidelity and Morning Star are two popular providers of investor services associated with retirement funds.Continue Reading
Investment experts explain the benefits of saving for retirement early due to compounding, as noted by CNN Money. This notion deals with earning interest over a period of time and reinvesting this interest into a brokerage account. Financial experts also emphasize the benefits of investing in the most tax-advantaged options. An employee can contribute pre-tax dollars to a 401k plan, and taxes are not applied until the funds are withdrawn, as listed by the Wall Street Journal.
A financial professional also outlines the steps required for successful retirement planning, as noted by Chron Small Business. First, a future retiree should consider all options, such as a 401k, IRA or annuity program. Each of these options has limitations on how much can be invested and the relevant tax implications. Potential retirees should also take into account a particular level of risk, as this level determines the allocation of funds invested in stock or bonds. Finally, retirees should assess all associated fees and how they impact overall earnings under a particular investment plan. For instance, a retiree can purchase insurance for an additional fee if desired.Learn more about Financial Planning