Frequently Asked Questions

What's the difference between a Roth IRA and a traditional IRA?

A traditional IRA allows for tax-deductible contributions (subject to income limits), with withdrawals taxed as ordinary income in retirement. A Roth IRA uses after-tax contributions with tax-free withdrawals in retirement. The choice between them often depends on your current tax situation, expected future tax rates, and retirement timeline.

How much should I save for retirement?

While individual situations vary, many financial professionals suggest saving 10-20% of gross income for retirement. However, this percentage may change based on factors like your age when you start saving, desired retirement lifestyle, and other sources of retirement income. We can help you determine a savings rate that aligns with your specific retirement goals.

What is an emergency fund and how much should I have?

An emergency fund is money set aside for unexpected expenses like job loss, medical bills, or major home repairs. Most financial professionals recommend saving 3-6 months of living expenses in a readily accessible account. The exact amount depends on your job stability, family situation, and personal risk tolerance.