Don’t Be Left Penniless at When You Look to Retire!
The future can be a scary thing for many Americans, but you can rest easy with proper financial planning. Terms like 401(k) may seem confusing and so far flung into the future that you don’t want to learn, just like the rest of the 41 percent of young adults not thinking about retirement. However, you are sure to have at least one investing opportunity at any age.
A 401(k) plan is simply putting putting away a potion of your paycheck towards future. I’m sure you want your money, but you don’t need every cent right now. You will be unable to work one day. Even if that day is thirty five to forty five years or so years from now, your financial investment should start now. You don’t want to be one of the 20 percent of those near retirement age without any saved money. Never pass up an opportunity for financial growth.
There are a few different conditions to cash out on your 401(k). You must meet at least one of these requirements. As with any retirement, there are countless nuances, but I can list a few of the main situations. Your invested assets may be accessed if reach the age of 59.5, die, end your retirement plan, or retire. This is not an exhaustive list of the circumstances in which you have the opportunity to use your invested money, but the main situation should be that you have retired.
In addition to what I have already listed, funds may be withdrawn if you experience hardship. Hardship has a specific definition defined by the Internal Revenue Service. You may be considered to be experiencing hardship if you, your spouse or your dependent has excessive amounts of medical bills that have not been paid for by your insurance. Educational expenses be allowed to be paid by money you have previously invested into your retirement plan even if they were accrued by a spouse or dependent.
Approximately 3,650,000 baby boomers retire each year. You will join them one day. Would you rather relax during your golden years in wealth or pinch pennies due to your lack of foresight?