How to Invest in Your Future Pre-Tax

Invest in Your Future

Did you know?

Retirement is expensive, plain and simple. Experts estimate that you will need 70% of your pre-retirement income (90% or more for low-income earners) to maintain your standard of living when you stop working. With this in mind, it’s time to take charge of your financial future.

Here’s how to maximize your pre-tax retirement savings:

Invest in your employer’s pre-tax savings plans, such as a 401(k).
Put the maximum amount allowed into your employer-sponsored retirement accounts. If you cannot afford the maximum, try to contribute enough to maximize any employer matching funds.
Place your money into an Individual Retirement Account (IRA). When you open an IRA, you have two options – a traditional IRA or a Roth IRA.
Avoid dipping into your retirement savings, as you will lose principal and interest and may lose tax benefits.
If you change jobs, roll over your savings directly into an IRA or to your new employer’s pre-tax retirement plan.
Start saving early. Devise a savings plan, stick to it, and set goals for the future.
Study your investment choices carefully. The more you know about investing, the more likely you will choose wisely.
Learn as much as you can about your plan’s administrative fees, investment fees and services fees to avoid reducing the amount of your retirement benefits unnecessarily.

Plan Ahead

Investing pre-tax will benefit you right now and during retirement. For instance, if you are in the 20% tax bracket, your paycheck will only be reduced by 80 cents for every dollar that you invest. You will also not pay taxes on those contributions or earnings until you start to withdraw them.

At Boyd Insurance & Investments our mission is to provide our clients Protection for Life, with support through life’s unforeseen circumstances involving your home, business, and other assets. Our agents are knowledgeable and will help navigate your investments with you. Call (941) 745-8300 or click here to receive an online quote!

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