Retirement Plans

Planning for retirement is a crucial step in ensuring financial security and peace of mind in your later years. A well-structured retirement plan can help you maintain your lifestyle and cover essential expenses when you are no longer working. At Epic One Insurance we’re prepared to offer guidance on this complicated topic and help you pave the way toward enjoying your golden years.

How Do Retirement Plans Work?

Retirement plans are financial arrangements designed to provide financial resources and replace employment income upon retirement. They typically involve regular contributions from your salary, which are invested over time to grow your savings. The accumulated funds can then be used to provide a steady income during retirement.

What Different Types of Retirement Plans Are There?

There are several types of retirement plans, each with unique features and benefits. Familiarize yourself with the following common options to help plan for your financial future:

• 401(k) plans—These are employer-sponsored plans that allow employees to contribute a portion of their salary pre-tax, with potential employer matching.
• Individual retirement accounts (IRAs)—These are personal retirement accounts with tax advantages, including traditional IRAs (tax-deductible contributions) and Roth IRAs (tax-free withdrawals).
• Pension plans—These are employer-funded plans that provide a fixed income based on salary and years of service.
• Simplified employee pension IRAs—Designed for self-employed individuals and small business owners, these plans may allow higher contribution limits.

When Should I Begin Planning for Retirement?

The best time to start planning for retirement is as early as possible. Starting early allows you to take advantage of compound interest, where your investments grow exponentially over time. Even small contributions can accumulate significantly over decades. Assess your financial goals, estimate your retirement needs and create a plan that includes regular contributions and investment strategies tailored to your risk tolerance and retirement goals.

We’re Here to Help

If you’re seeking retirement plan advice in Elgin, Aurora, Naperville or throughout Illinois, contact Epic One Insurance today to learn more about your options.