Before you go on a trip there are always certain things you have to do to prepare for it.   You have to plan where to go, how to get there, what to bring and what to do once you get there.

Planning for your retirement is just like planning for a trip.   You need to do certain things before you will be able to retire.   We will focus on the 2 main decisions you will need to make before you retire: what you plan to do when you retire and how much money you will need to do it.

We can’t help you decide what to do in retirement, but we can help you on the financial side.   We will show you ways to improve your 401k investing, some of the options for your 401k funds and some 401k distribution strategies that you should find helpful.   There are many things to do in preparation for your retirement, let’s get started.

Retire In Style:401k Investing & Distribution Strategies:

401K investing:

• Invest as much as you possibly, possibly can.
• Maximize your 401k investing every year.
• The 401k contribution limit for 2010 is $ 16,500  with a $5,000 catch-up contribution if you are over age 50.
• So for 2010, you can invest $21,500 into your 401k plan.
• If your company matches, you are getting free money.
• Before you retire, you are saving on taxes since your contributions are tax deferred until you make withdrawals.
• The more money you save before you retire, the easier retirement will be.

Hired help:

• Hire a financial adviser.
• Use the adviser for guidance with financial decisions.
• Bounce your financial ideas off the adviser.
• It will help to share your thoughts with a financial professional.
• Hire an attorney.
• Use the attorney for estate planning, will preparation and possibly a trust.
• Hire an accountant for tax advise.

401k distributions:

• Plan your 401k distributions.
• Will you take a lump sum or regular payments?
• Based on your tax situation determine whether a lump sum or regular payments will be more advantageous for you.
• Work with your accountant to review the tax advantages of either option.
• If you take a lump sum, do you have an IRA rollover account set up.
• Work with your financial adviser to set up the appropriate accounts.

401k funds:

• At retirement if you invest your 401k funds in an income annuity, you will create a guaranteed steady stream of income.
• Having a guaranteed income stream can be comforting.
• Review all of your options with a financial adviser.

You could be in your retirement years for 20 – 30 years; that’s a very long time.   You will need to do a lot of planning for such a long time period.   Being prepared for a trip makes the trip run a lot smoother; being prepared for retirement will make your retirement years a lot more fun.

Start preparing for your retirement today: invest as much as you possibly can afford to, start interviewing financial advisers, attorneys and accountants, start reviewing options for your 401k funds.

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