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Thursday, 8 October 2015

How To Get Ready For Retirement With The Help Of Financial Planners Baltimore

By Jay Dy


When the Great Recession hit, many people who had diligintly invested for retirement lost a lot of their value, meaning they would have to work many more years to make up for it. Others didn't do much planning, so they find themselves getting older without enough saved to retire. No matter which incident you are experiencing, financial planners Baltimore can help.

Most employers offer IRAs or 401K plans to employees, often with a match of the funds. This means that for every dollar you contribute, they will contribute up to a 100 percent match. This is free money, and should definitely be taken advantage of.

Contributing to a 401K generally is not enough to get you to a cozy retirement. You should practice asset allocation to add to your wealth and have enough to live on after you stop working. This means spreading around your investments so you aren't devastated by a stock market crash or other disaster.

A good way to allocate those assets is to invest in a variety of funds. Mutual and index funds are both great ways to invest money and get a great return for your dollars. Other things that a Baltimore retirement planner can help with include bonds and certificates of deposit (CDs).

If you have already begun putting money into an account with your employer, then you may be able to think about retiring early. A financial professional can look at how much you already have put aside, and decide if early retirement is a possibility.

An oft overlooked aspect of all this is tax planning. If you own property, even if it's paid off, you will have to pay taxes. You must have money set aside for this, so ask your planner about it.

For those who don't know much about stocks and bonds, the thought of putting money away for retirement can seem daunting. Luckily, there are Baltimore professionals who can explain it all and guide you through the process.




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