Retirement

Retirement Savings 101: What’s the Difference between a Roth 401(k) and a Traditional 401(k)?

sharkeyhowesandjaver Investing , , ,

Retirement golden eggs on dollars, IRA in focus, 401k blurryDid you know many employers offer a traditional 401(k) and a Roth 401(k)? Learn the difference between the two to see what’s right for you.

Last week we covered the difference between Roth and Traditional IRAs. This week we look at the differences between Roth and Traditional 401(k)s.

Let’s start by defining the 401(k)…

401(k)s are retirement savings plans sponsored by an employer. Employees can defer all or part of their paycheck to the plan, as long as you are within the IRS limits. You can think of it as a deferred salary. Many companies will also match contributions to the plan. Continue reading →

How much should I save for retirement?

sharkeyhowesandjaver Julie Fletcher , , , ,

We are asked ‘how much I should save for retirement’ all the time. It’s an important question! While we’d love to have a canned answer for everyone who asks, it’s just not that simple. We’ve found that answering a few questions really helps our clients hone in on their retirement savings goals.

Ask Yourself…

  • What age would you like to retire?
  • What kind of lifestyle would you like to live?
  • Are you going to sell your home, stay put, buy a second home?
  • Will you be traveling more often?
  • Will you still work part time or start a new business?

Those questions are a great place to start when planning your retirement. As Julie says in the video, “Get down to the nitty gritty of your desired lifestyle,” when answering the questions about your retirement. Being specific helps you (and your planner) set realistic goals and expectations.

In general we find SH&J clients need to start retirement with 100% of their current living expenses. It is rare for expenses to go down after retirement.

Whether you are close to retirement or decades away, we’d be happy to help you answer some of the questions above and make a retirement plan that makes sense for you. Give us a call at 303.639.5100 to set up a time to come in and chat.