| Use Your 401k For Early Retirement
Retirement is a big part of the American Dream.
You work hard, you save well, you invest well and it all pays off when you
can stop working and finally relax. You can travel. You can spend time
with the family. You can perfect your golf game or teach your grandchildren
to fish. But the important thing is that you can take a few steps back and
live off of the money that you saved when you were working.
But when things aren't going well at work,
many employers have taken to trying to save some money by offering older employees
an early retirement. And, while your goal is, of course, to have time to
yourself after all of the work you've done for someone else, you may not be
sure that you want to take your employer up on the offer.
After all, if you had planned to retire when
you were 65 and you're only 58 there are seven more years that you'll need
to finance with your retirement savings and investments. There are seven years
that you won't be continuing to contribute to your 401k and other savings
plans.
And, of course, there are other issues to
be aware of as well. There are penalties for making withdrawals from your
401k retirement account before you have reached a certain age; even though
you may be retired at 58, you may still need to pay the 10 percent penalty
for making a withdrawal from your 401k. In addition to the penalties for early
withdrawals from your 401k when you retire early, you will have to pay the
taxes on the money that you withdraw.
If you have enough savings to live on without
making a withdrawal from your 401k to fund your early retirement, you will
need to look into rollover options. But when you are offered an early retirement
by your employer, it is important for you to understand the way that your
finances will be affected before you make any big decisions.
One way that you can be sure that your savings
and investments will still work for you is to download our free retirement
calculator. With this calculator, you'll be able to study the way that your
savings and investments accounts have performed over
time.
You'll also be able to look at the way they
are projected to perform in the future, and the projections that you see will
take interest rate changes and inflation into account. From there, you'll
be able to see the ways that changes to your investment strategy, including
taking an early retirement, will affect your financial security.
But more importantly, before you make any
final decisions, take advantage of the free consultation with a financial
advisor that you'll be entitled to when you download our free retirement calculator.
Get your questions answered by a professional retirement counselor, someone
who will understand the effects of an early retirement on your 401k and other
savings and investments.
During your consultation with a financial
advisor, you'll be able to develop a strategy for maintaining your financial
security even with your early retirement. You'll be able to develop a plan
and to put that plan into action.
But before you make any big decisions, decisions
that you might otherwise regret, make sure that you have as much information
as possible, information that you can get when you download our free retirement
calculator and talk with a financial advisor.
Use that information to make the decisions
that you need to ensure that all of your retirement goals will be achieved,
even if you get started a little bit early. Just make sure that you have
the information. Click the red button to download our free retirement calculator
and get started. Make the decisions that are right for you.
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