Benefits And Benefits Of Retirement Plans Essay

1684 Words May 2nd, 2016 null Page
When saving for retirement, the most important aspect to consider is not running out of money. You want to make sure you save enough throughout your life to make it to the end of your retirement. When is that? Well for everyone it is different. Not everyone lives the same amount of time, but the life expectancy is continually growing, so that is important to remember when saving for retirement. Selecting a distribution plan is also important because everyone has different needs and retirement plans. What happens to your retirement fund if you get a divorce? Lastly there are many different types of retirement plans to choose from, so choosing the one that fits you best can be a difficult. There are a few decisions you need to make before you start saving and distributing your money. You need to consider what age you are going to start withdrawing your money, how much you will be taking out, how often you’ll be taking it out, and what other ways will you be funding your retirement. If you do not plan, the likelihood of running out of money is very high.
You are able to start taking out money from your retirement fund without penalty at age 59 ½. This does not mean you have to retire. If you take out your money before age 59 ½ then you are subject to a tax penalty which you do not want. Many people take money out of their retirement fund if they are having other financial hardships, but this is not suggested. Your retirement account should be your last resort if you need…

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