Whether you hope to spend your golden years traveling the world or pursuing your favorite hobbies, achieving those dreams requires careful planning and financial discipline. Retirement planning can seem like an overwhelming project, and many people don’t know where to start. Here are answers to some of the most common questions you might have about saving for retirement.

What to Know About Retirement Planning

What if I can’t afford to save for retirement?

Your retirement savings an important investment because you’ll rely on these resources for support later in life. Even if you can’t afford to save as much as you’d like, start building the habit by putting away 10 to 15% of each paycheck toward retirement.

When should I start my retirement planning?

Retirement savings are powered by compound interest, which can add up to more than your actual contributions. The more time interest has to build, the more you’ll have in retirement, so it’s best to start as early as possible.

Is an IRA better than my employer’s 401(k)?

Both IRAs and 401(k)s are effective investment vehicles for building your retirement, and each has different benefits and drawbacks. Many retirement planning professionals recommend using both to maximize your tax advantages and diversify your investments.

What’s the difference between a traditional & Roth IRA?

Roth IRA contributions aren’t deductible, while traditional IRAs are funded with pre-tax income, which lowers your short-term liability. However, you’ll have to pay income tax on distributions from a traditional IRA, while Roth IRA gains are tax-free regardless of your investments’ growth.

Retirement planning can seem overwhelming, but the professionals at the office of Wilfred E. Bucher CPA, will guide you through the process and help build a roadmap for your future. Over the years, they’ve helped countless clients throughout Honolulu, HI, identify their goals and establish plans to help make those dreams a reality. Visit their website for more information about their financial planning services, or call (808) 528-4146 to schedule an appointment.