Saving for Retirement and Saving on Income Taxes
The legendary writer and playwright George Bernard Shaw had a saying. “It is a shame youth is wasted on the young.” How true a statement that is! Young people never believe that they will ever want to retire or get old.
But not only does aging happen to the best of us, it happens to all of us.
We hear many commercials talking about where one can have a given object for just a few dollars a day. This morning, I heard that for the cost of my daily latte, I could lease a new car. However, what if I were to tell you that for the cost of that same latte, you won’t run out of money when you get older if you fund a retirement plan account? Guess what… I am sure the latte tastes better.
I proved this myself last year when I put in a jazzy coffee maker in our office. I bought all of the coffee pods and spring water, and ran some math showing my staff that if they stopped going to the coffee store, they would have several thousand dollars more in tax-free spending money. I observed that in most cases, the coffee shop coffee tended to taste better judging by the amount of coffee pods I was buying each week.
But I digress. We’re talking about saving for retirement. And in many cases, such saving creates a tax savings that can be used for other needed purposes.
If you have any questions about retirement plans and using them to your best advantage, please do not hesitate to contact us.