Build a Personal Paycheck For Life
Life Stage Priorities
Young professionals who begin investing through an employer-sponsored tax-advantaged retirement plan can benefit from decades of compound interest earnings. Most often, that plan comes in the form of a 401(k), 403(B) TSP. These investments allow you to invest money on a pre-tax basis (up to $19,000 in 2019 for those under age 50) that grows tax-deferred until its withdrawn in retirement.
When you’re just starting out, life insurance may not be your first concern. Putting it off may cost you. Life insurance makes sense whenever there are financial needs that could not be covered by your assets if you were to pass away. The younger you are the cheaper it is!
Another way to continue your long-term investment strategy is with an individual retirement account, or IRA. IRA options: traditional and Roth. Contributions to a traditional IRA are similar to a 401(k) in that they go in on a pre-tax basis and are not taxed until withdrawal. Roth IRA contributions, on the other hand, go into the account after-tax, and qualified distributions may be withdrawn tax-free.
Always try to begin with building up an emergency fund. You’ll ensure that you’re covered if an unexpected expense were to arise, like a job loss or natural disaster, but you’ll also develop the habit of regularly contributing to a fund. So you don’t deplete your saving and investments.
A simple will is the will of choice for you. A simple will is a single legal document that applies only to you. A simple will describes how you want your assets distributed, and to whom, after you are gone
Schedule your appointment with the Compass Financial Team today.