The financial crisis of 2008 has had wide ranging and long term implications for many Americans especially architects who have faced severe hardship—with the closing or downsizing of many firms—leaving architects and their staff jobless for months or even years, according to a 2012 issue of Architectural Record. More recently, there have been improvements in the market—including the stock market reaching new record closes. These gains give us all reason to be optimistic about the future.
As a result of the financial crisis, many Americans have started saving more and are beginning to develop a realistic understanding that they must take action if they are to achieve their retirement goals. The 2014 Retirement Confidence Survey (RCS) finds that confidence in having enough money to live comfortably through retirement has increased for both workers and current retirees in 2014 and that this boost in confidence can be attributed to active retirement plan participation.
Benefits of Getting Started
If you own your own firm or operate a sole practice but have yet to make retirement provisions for you and/or your employees, it’s time to move it off the back burner. Here are just a few sound reasons to begin saving for your retirement future today:
- Tax Advantages—Tax savings incentives have created several new opportunities to help you put away money for retirement while deferring on taxes. If your firm qualifies, a tax credit may be available and can help defray the cost of installing and administering a retirement plan.
- Compounding Interest—When you save and invest, compounding interest works in your favor, helping you to build the savings you need for future financial goals. But to maximize the benefit of compounding interest you must get an early start. The sooner you begin planning and saving, the more your money will grow.
Procrastination can be the difference between financial success and financial failure. Here’s an example, if we assume you have $75 a month to invest at 6% compound interest.
Here, waiting 20 years will cost you over $100,000 of investment returns.
Regardless of your age, the power of compound earnings can potentially make even a small investment today worth more by retirement. In short, delay makes it harder and harder to build what you want.
- Account Consolidation—For individuals with multiple retirement accounts from multiple jobs, you can now consolidate all your retirement dollars into one plan. If you have multiple accounts talk to a financial professional to see if consolidation makes sense.
- Attract and Retain Talent—Offering retirement products as part of your enhanced benefits package is a great way to attract and retain potential employees in today’s competitive marketplace. Not only does your plan secure your future, it may be the primary way your employees can secure theirs.
The sooner you start saving for retirement, the more you’ll have when you’re ready to retire. You can start retirement planning now to let your money work for you. As an AIA Member, you may call an AXA Equitable Retirement Program Specialist at 800-523-1125 to learn more about retirement solution offerings or visit axa2plan.com to schedule a retirement planning consultation.
AXA Equitable Life insurance Company has been helping association member plan for an independent retirement for over 45 years and an AIA Trust provider of retirement solutions since 1991. AXA Equitable delivers a comprehensive “bundled” service that helps minimize the time needed for you to establish and manage your retirement plan.
Withdrawals from tax advantaged retirement plans are subject to ordinary income tax treatment and if taken prior to age 59 ½ may also be subject to an additional 10% federal income penalty. AXA Equitable Life Insurance Company (NY, NY) does not provide legal or tax advice.
GE-95335 (06/14) (Exp. 06/16)