Business Source July - August 2018 - Page 17

tax advisor to determine which is best for you. Either way, if you are under the age of 50, you are able to contribute up to $5,500. Most intuitions will allow you to make contributions monthly by making an electronic withdrawal from your bank account. This is highly recommended as it then becomes your new normal, and you do not have to write a check periodically to make contributions. Are you self-employed? There are sev- eral options available to you as well. You can set up a Simple IRA or a SEP IRA. Each of these has different rules around maximum contributions. You should also take into consideration whether or not you have employees when deciding to start saving into one of these plans. What if you have a retirement plan at your employer, but you want to be able to have more freedom in selecting your investments? You are able to have an employer sponsored retirement plan in addition to a Traditional IRA or a Roth IRA. However, depending on other factors you may not be able to make a full contri- bution to an IRA. Ultimately, start saving for retirement as soon as you are able. Start with the minimum that your company will match and then work toward the goal of max- ing it out. I’d like to share with you the example of two investors that saved the same amount of money, but started saving at different times in their life. Investor A saved $1,000 per year for ten years from age 20-30 and stopped, allowing this to grow until age 65. Investor B saved $1,000 per year for twenty years, from age 45-65. Assuming a flat 6% annual compounded return, Investor A has nearly three times more money than Investor B. This is represented in the illustration below. I encourage you to sit down and take a hard look at everything to determine what is best for you. No one else can plan for your future but you. Still have questions or need some guidance? You can check out the resources available on our website or contact me for more information. — Wells Fargo Advisors is not a legal or tax advisor. This article was written by and provided courtesy of Michelle Konkle, CFP®, Financial Consultant with Axiom Financial Strategies Group of Wells Fargo Advisors in New Albany, IN at 812-948- 8475 or Investments in securities and insurance products are: NOT FDIC-INSURED/ NOT BANK-GUARANTEED/MAY LOSE VALUE. Wells Fargo Advisors is a trade name used by Wells Fargo Clearing Ser- vices, LLC, Member SIPC, a registered broker-dealer and non-bank affiliate of Wells Fargo & Company. © 2018 Wells Fargo Clearing Services, LLC. All rights reserved. CAR 0618-00514 Growth Innovation Thomas Edison, well-known for his enacted invention the Deal electric Franklin D. Roosevelt and Congress the of New in the early bulb, 1930s held in response to the Great Depression. These efforts light more than 1,000 patents. spurred economic rebirth and provided immediate relief to those hardest by the also depression. Did you impacted know... Edison invented the phonograph, telegraph, alkaline batteries and Kinetograph - a camera for Did you know... Calvin Coolidge defeated Roosevelt as Vice motion pictures? President in the 1920 presidential election? INNOVATION our Values. Core Values. We to want to our thank GROWTH is one is of one our of Core We want thank clients and clients colleagues for having referred friends, family placed and business our for the trust and confi dence you’ve in us associates to us. Referrals are the to design innovative strategies for lifeblood you. of our growth. SERVICE | INTEGRITY | ACCOUNTABILITY | GROWTH | INNOVATION Vaughan Scott, MBA, CPWA ® 0DQDJLQJ'LUHFWRUΖQYHVWPHQW2ɝFHU Eric Ballenger 6HQLRU9LFH3UHVLGHQWΖQYHVWPHQW2ɝFHU Providing expertise in serving family business and entrepreneurs Michael Grau, CFP ® , RICP ® )LUVW9LFH3UHVLGHQWΖQYHVWPHQW2ɝFHU Todd Harrett Michelle Konkle, CFP ® Financial Advisor Financial Consultant 101 W. Spring Street, Fifth Floor, New Albany, IN 47150 Phone: 812-948-8475 Fax: 812-948-8732 Wells Fargo Advisors is a trade name used by Wells Fargo Clearing Service, LLC. Member SIPC CAR CAR 0418-00668 0618-02352 July / August 2018 17