The Best Retirement plans to Explore in 2022 – Robert Nico Martinelli

If you are busy setting up a family, having young kids, and trying to build your career, retirement may not be your top priority consideration. However, it is always there on the horizon, and the day eventually, you may enter into retirement life, enjoyably so if you have saved enough by planning for it well.

In order to make sure that you have a financially secured retirement life, it is ideal to have a plan running early in your life itself. Good if you have already done so, and if not, it is never too late to think about retirement planning. You may divert a small portion of your paycheck to the retirement plans, which may also give you many tax advantages. If you start early, your wealth will grow exponentially in a compound manner and help you attain those golden years of your life with full peace of mind.

Robert Nico Martinelli on retirement plans

Robert Nico Martinelli is an experienced retirement planning professional and financial consultant. He points out that by understanding the options in retirement planning, you can be well equipped to optimize your benefits and achieve your dream retirement life.

The major attraction of entering into retirement plans during the early ages of your work-life is that it offers many tax advantages. For example, contributions into traditional 401(k) will reduce your overall taxable income if made with the pre-tax earnings. Tax is applicable on withdrawal of the fund after retirement. Another option is Roth 401(k), in which you are funded with after-tax dollars, and so the withdrawal of retirement funds is tax-free. Here are some plans for your consideration.

1. DC plans

DC or defined contribution plans include all 401(k)s, which is popular in the retirement planning sector. Now, about 805 of the Fortune 500 companies offer DC plans only over the traditional pension. 401(k) plan is the top DC plan followed by various employees, whereas many others also have chosen 403(b) and 457(b) plans also.

The 401(k) plans can be an easy and effective saving for retirement. This money is reinvested into some high-return investments like stocks, and you get tax gains until you withdraw it. One drawback of 401(k) plans is that if you want to access the money early in an emergency, you may have to pay the penalty.

2. IRA plans

IRA is another top retirement plan by the U.S. government, in which Individuals can contribute up to $6,000, and those who are above 50 years of age can contribute even up to $7,000. IRAs are of diverse types like the traditional IRA, spousal IRA, Roth IRA, SEP IRA, rollover IRA, and Simple IRA. Each of these different slights comes with a unique set of advantages and disadvantages.

Along with these, some other top retirement plans suggested by Robert Nico Martinelli are Guaranteed income annuities, The Federal Thrift Savings Plan, Cash-balance plans, Cash-value life insurance plan, NQDC or Nonqualified deferred compensation plans, etc. It is advisable to take consultation of a tax planning expert who can give you actionable insights to retirement planning for best tax planning and optimum returns.