Wendell Financial Services

The Most Important Aspects of Retirement Planning

Most people have different financial priorities during different stages of their lives, but regardless of your age or current life stage, a balanced retirement plan is like a three-legged stool.

Remove one of the legs and the stool teeters unsteadily and may crash, taking you with it.

The most important aspects of retirement planning can be placed into three broad categories, which are the three legs of the plan:
(1) Government Sponsored Plans
(2) Employer Sponsored Plans
(3) Personal Savings Plans

With the futures of social security and pensions plans becoming increasingly uncertain, are you prepared to stand alone on your personal savings ?

Know your limits – Are you maximizing your current contributions?

Account Type
Traditional and Roth IRA	2006	2007	2008	2009	2010
Annual Contributions	$ 4,000	$ 4,000	$ 5,000	$ 5,000	$ 5,000
*Catch-up contribution	$ 1,000	$ 1,000	$ 1,000	$ 1,000	$ 1,000
*401(k), 403(b), 457 and SAR_SEP*
Annual Contribution	$15,000	$15,500	$15,500	$16,500	$16,500
*Catch-up contribution	$ 5,000	$ 5,000	$ 5,000	$ 5,500	$ 5,500
Simple IRA
Annual Contribution	$10,000	$10,500	$10,500	$11,500	$11,500
*Catch-up contribution	$ 2,500	$ 2,500	$ 2,500	$ 2,500	$ 2,500

*Only IRA owners and retirement plan participants age 50 and over may make catch-up contributions

Account Type

Traditional and Roth IRA

Simple IRA