Is That 401k Early Withdrawal Penalty Worth It?
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 Try Bob's 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 TRUSTED financial advisor that you'll be entitled to when you try Bob's 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. Try Bob's Free Retirement Calculator and get started. Make the decisions that are right for you.
maximum contribution | annuity | retirement | investing | ira | 401k | wealth management | investment advisor | financial advisor | investment planner | retirement planning | retirement calculator | retirement advisor |