In regards to retirement planning, the main question we always hear is, “When should I start saving for my retirement?” At Barouti Financial, we pride ourselves on creating customized financial management plans for each client; however, when it comes to this question, we always answer it in the same way, no matter who is asking. Our response is, “Start immediately!” We know better than most that there are various points to consider and that complications will always arise, but we have all sorts of tips and tricks in our arsenal that may help guide you toward success.

If you have entered into the workforce recently, now is the best time to begin saving for retirement. We know that retirement savings is not on the mind of most 20 somethings, but the sooner you start, the better! While there are many types of investment options, think about a regular 401(k) for a moment. If you can contribute $10k a year with an annual return of 8 percent, in 30 years, you could have a projected retirement fund worth $1,181,340. Compare this to someone who only has 10 years until retirement. This person would end up with only $151,069. Which amount would you be more comfortable with when it comes to retirement?
When you think about your 401(k), there are a few things to keep in mind:
1) Will your contributions be able to grow without tax erosion?
2) Does your employer offer matching contributions (up to a certain limit?)
3) What is the maximum 401(k) deferral?
We can provide you with all of the answers you need and prompt you to think about other facets of retirement planning that probably hasn’t even crossed your mind yet. Our advisers are skilled at consulting clients about supplementing their retirement plans with contributions to a traditional or Roth IRA. These options can be a great way to supplement your 401(k) account.
Don’t let another year go by without putting a plan together for your retirement. Even if it’s just a small amount per month, that’s better than putting it off for another year.
Ready for more advice when it comes to retirement planning? Contact Barouti Financial today.

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