Relationships and Retirement Savings

20140829 GRIOT

Can couples save for retirement and keep their relationship strong? Life throws a number of challenges at couples on a daily basis. Among those challenges are work, children, bills and the relationship itself.

Make Retirement Savings a Budget Priority

In meeting those challenges most couples are working with a definitive budget. Unfortunately, many times retirement savings are low on the budget priority list. If that is the case some rearranging needs to happen. Many retirees reflect on life and say, “life happens pretty quickly and before you know it, you’re retired.”

Couples Need to Contribute to the Company 401k

To help meet these long term needs couples still want to make sure they put at least the minimal amount in a retirement account for their future.  A great way for them to do that is to participate in the company sponsored 401k plan.  They can start off with a minimal amount of their salary.

Once they see how that works for their budget, they can always increase the amount they put in. They also want to make sure they contribute consistently. Making consistent contributions insures that they build up nice enough nest eggs.

One of the other major benefits of contributing to 401k plans is that it helps lowering taxable income when it comes tax time. Taxable income is lowered by how much is contributed each year to the plan.

Couples Need to Contribute to a Roth or Traditional IRA

Another great way for couples to save for retirement is by making contributions to a Roth or traditional IRA. Very similar to 401k plans, couples want to make sure they contribute to the accounts on a regular basis.

Again, that’s the best way to make sure they have a comfortable nest egg when it comes retirement time. Similar to 401k contributions they can start off with something small and as their salaries go up they can increase the amount they contribute to the plans.

Also similar to 401k plans, Roth and traditional IRA accounts offer some great tax benefits. The Roth allows the money to grow tax free for when the money is taken out in retirement. The traditional allows the couple to make contributions each year and have the contributions reduce the amount of taxable income they have on their tax returns.

The best way for couples to approach the retirement savings issue is to sit down and see what works best for the household budget. After living, travel and expenses for children, savings should take a front seat to Netflix, entertainment and a host of other expenses that are short term in nature. Especially since many movies’ will end up on television for free. Once they do that as a couple they will be on the road to a comfortable nest egg for their retirement and a strong relationship.

About the Author

Kolonji MurrayTaxAssurances, LLC is an independent financial services firm that provides expert advice and solutions in three financial disciplines: Accounting, Insurance and Investment Management.

It’s Founder, Kolonji Murray, has worked as a banker, accountant and financial advisor for a number of leading firms. He holds a degree in Accounting from Hampton University and is active in a number of civic and industry organizations. Along with being an Accountant Mr. Murray is Series 7 and 66 licensed in NY. He is also life, accident and health, variable life/variable annuities insurance licensed.

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