Retirement
New Mexicans are no different than the rest of the country. Many have failed to save enough for retirement. Planning for retirement is essential- sadly more people spend more time planning a two-week vacation than they do in a lifetime on retirement planning.
As a Certified Financial Planner in Albuquerque, New Mexico, I can help you with any of the following::
IRA - Individual Retirement Arrangement aka Individual Retirement Account- is where individuals can set money aside for retirement and the money grows tax deferred until withdrawn. Some contributions may be tax deductible depending on income and other retirement plan options.
Most distributions prior to age 59½ are subject to a 10% penalty in addition to being taxed as income.
ROTH IRA - Similar to a regular IRA, but the contributions are not tax deductible. In return, distributions after age 59and ½ typically are tax-free under current law.
SEP IRA - A retirement account for small businesses and the self -employed that permits higher annual contributions than a regular IRA and typically is 100% funded by the employer or business on behalf of the employee.
Account Consolidation - In most cases, it is advisable to consolidate your IRAs into one account. This helps reduce fees and paperwork.