Your quality of life during retirement will depend on a variety of factors, not the least of which is how much you saved for this phase of life and how early you started saving. Unfortunately, as the retirement planning experts at Wilson, Rea, Beckel & Associates CPAs LLC in Pagosa Springs, CO, explain, many Americans put off their savings and investing, and many have no retirement savings at all.

To avoid the need for working past retirement age, Wilson, Rea, Beckel & Associates CPAs LLC are here with a few benefits to early retirement planning.

The Power Of Compound Interest

Over time, compounding interest will multiply the value of your initial investment, even with relatively modest monthly contributions to your retirement account. Essentially, compound interest works by paying interest on your contribution, which is then used to calculate future interest payments. Over 30 years, just $50 per month can amount to over $75,000.

Substantial Tax Savings

Contributions to Roth IRAs, 401(k)s, and other investment accounts are tax-deferred, meaning you owe taxes on those funds until you make withdrawals in the future. In addition to decreasing your short-term tax liability, you'll also have more funds available to generate long-term wealth. Until you actually make the withdrawal, that money will be earning interest to carry you through retirement.

Contribution Matching Opportunities

Many employers offer some type of 401(k) contribution matching, which could be up to 3% of your annual salary. Waiting to take advantage of these programs essentially means giving up free money offered by your employer — money with the potential to substantially grow over time. Employer-provided retirement plans are also very simple, requiring almost no market expertise or research.

For over 16 years, the financial service professionals at Wilson, Rea, Beckel & Associates CPAs LLC have been helping their clients prepare for the future with proper retirement planning. They take the time to understand your priorities and will dedicate all of their resources to developing a plan that will help you achieve your goals. Visit their website to learn more, or call (970) 731-1040 to make an appointment. You can also find them on Facebook.