Types

• There are different retirement plans available. Some of the well-known vehicles for retirement savings are 401(k), IRA (Individual Retirement Account), annuities, and company pensions. Some other options you can use to achieve the same goals include 503(b), annuities, life insurance, mutual funds and CDs (Certificates of Deposit). Many of these retirement plans have taxes attached to them. And not least, Social Security can supplement your current plan.
  
  

Benefits

• Retirement planning can be seen as a tedious task, but the results of planning will impact your life tremendously. Working with a certified financial planner will help you understand the options available and outline your actions to achieve financial security. The products a financial planner recommends will grow your money the fastest way under the law, because the rates of return on many plans are higher than traditional methods of saving. The certified planner will assist you in diversifying your funds so that risk is minimized.
  
  

Considerations

• With IRS regulations woven into many products, it is recommended that you take the time to educate yourself on what suits your situation. Tax breaks will help grow your nest egg faster while tax penalties can hurt your progress in the event you violate a provision (i.e., early withdrawal, rollover). For some plans, limitations on income and how much you can put into it yearly can affect your retirement prospects.
  
  

Misconceptions

• The recent financial crisis has crippled the retirement process of many, as hard-working Americans have seen their funds disappear or become depleted. Failing banks, faltering company pension plans and Wall Street scams have ignited reconsideration on where and, more importantly, why people should invest their money where there are no guarantees that the funds will be available when the time comes to quit working.
  
  

Warning

• Many Americans keep putting off retirement, thinking there is time later in life to begin saving, but it is wise to start planning as early as possible and take advantage of the compound interest, a major accelerator in your money potential. The longer your money is compounded, the greater your nest egg potential will be. The problem with waiting is uncertainty of health, the job market and your ability to actually save due to debt and other unforeseen bills.