There are important reasons why a Grainger employee needs a successful 401K plan to meet their needs, now and the future. The goal is to have a flexible enough strategy that enables you to invest your assets so that you can provide for the needs of you and your family while attempting to minimize risk and preserve wealth.
One of the fastest growing segments in the insurance industry to help ensure the needs of loved ones are being met is long-term care insurance, and it has been for the past several years. Long-term care is broadly defined as services provided to people who are no longer able to take care of themselves due to chronic illness, injury, or the effects of aging. This type of insurance can be an immense help due to unforeseen circumstances, because according to the Department of Health and Human Services, it is estimated that 70% of persons over the age of 65 will need some form of long-term care support.
Retirement planning encompasses the planning for long-term care like explained above, but it also takes in all aspects of wealth accumulation, such as contributions to your retirement fund. At age 50, workers in certain qualified retirement plans are able to begin making annual catch-up contributions in addition to their normal contributions. At age 59½, workers are able to start making withdrawals from qualified retirement plans without incurring a 10% federal income-tax penalty. This applies to workers who have contributed to IRAs and employer-sponsored plans, such as 401(k), 403(b), and 457 plans. Keep in mind that distributions from traditional IRAs, 401(k) plans, and other employer-sponsored retirement plans are taxed as ordinary income.
Questions? Call Mooney Lyons at 1.847.382.2600 or visit us at: mooneylyons.com. Retirement planning shouldn’t be a stressful process. Working with a qualified financial advisor can take out the anxiety in retirement planning and help you build a wealth strategy with the goal of providing for you and your family.