St Paul Financial Advisor

A St Paul financial advisor is a professional trained to help you with your financial questions. Whether you are planning parenthood, buying a home in St Paul, MN, or saving for college, a financial advisor is your first step to ensuring your savings are providing you the nest egg you want.

Although there are many advantages to using a St Paul financial advisor, one of the most important is for retirement planning. Whether you are just beginning in the work force and starting your first 401k plan, or are a seasoned veteran and would like to know what to do with your money once you retire, a St Paul financial advisor is there to help you make the right decisions.

Saving for Retirement

There are many plans available in MN to help you save for retirement. From 401k plans to a Roth IRA (Individual Retirement Account), you can build your account to allow you financial freedom when you are ready to leave the work force. A St Paul financial advisor is an excellent resource to walk you through the various stages of savings.

When you first begin in the work force, you may not be thinking about planning to retire. If you consider how much you can save if you start early you may change your mind. You can always start small and increase your contributions over time if it makes it easier. A St Paul financial advisor can show you how even a small contribution out of each paycheck can grow over time to a substantial nest egg.

What is a 401K?

A Minnesota 401k plan is an employer plan that allows you to invest pre-tax dollars into an account that you control. You can choose the investments you want to make with your money and change them as needed. Many St Paul employers will also match a percentage of your contribution. The employer controls their contributions until you are 100% vested. At that time, the control switches to you. Vested percentages usually grow with your tenure. You may start out at 10% or you could even start at 50% it just depends on the employer. Your St Paul financial advisor can help you decide on the right contribution rate.

There are limits to how much you are allowed to invest into a 401k account. If you are over the age of 50, you may be able to invest more. Talk to your Minnesota advisor for further information. You should periodically review your investments and make adjustments as needed. You should also talk to your advisor about possible tax deductions for the money you put into a 401k account. Your advisor can help you understand the benefits of a 401k plan and help you decide what the best investment choices are for you.

What is an IRA?

An IRA, or Individual Retirement Account, is a plan that allows you to invest money into a retirement savings plan. There are two kinds of IRA plans available, Roth IRA and Traditional IRA. A Roth IRA, is a plan that allows you to invest money after taxes. This money is tax exempt, which makes it easier to withdraw later. Anyone who has employment income can contribute to a Roth IRA. In a Traditional IRA, the contributions are pre-tax which makes them tax deferred. What this means is that if you withdraw the money later, you will need to pay the taxes at that time. Talk to your St Paul financial advisor about which IRA is the right one for you.

Retirement Options

Once you have determined that it is time to retire from the workforce in Minnesota you will need to understand what to do with your company 401k plan. There are several options available to you. You can roll the money into an IRA. You could also cash out your 401k but there are penalties associated with the cash out option. Talk to your financial advisor before making the decision.

Once you have retired there may also by RMD's or required minimum distributions for your retirement account. RMD is the amount the government requires you to withdraw each year from your retirement savings. You can invest it into a non-retirement account if you so choose, or perhaps to purchase a new St Paul, Minnesota home. Talk to your St Paul financial advisor to determine if there are any required minimum distributions for your savings.

A St Paul financial advisor can help you with many financial planning ideas over the years. Whether you are just starting out in St Paul or are at a retirement age, you can benefit from the advice of a St Paul financial consultant. Put together your short and long-term goals and discuss them with your St. Paul advisor. You may be surprised at how easily obtainable your goals are with a little careful planning!

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