{"id":19189,"date":"2020-04-09T08:00:59","date_gmt":"2020-04-09T13:00:59","guid":{"rendered":"https:\/\/taxprocenter.proconnect.intuit.com\/?p=19189"},"modified":"2020-04-02T22:19:37","modified_gmt":"2020-04-03T03:19:37","slug":"helping-your-clients-with-investments-and-retirement-planning","status":"publish","type":"post","link":"https:\/\/accountants.intuit.com\/taxprocenter\/client-relationships\/helping-your-clients-with-investments-and-retirement-planning\/","title":{"rendered":"Helping your clients with investments and retirement planning"},"content":{"rendered":"

Over the last several months, we\u2019ve seen the impact of the coronavirus<\/a> to global markets. And although it\u2019s still early to know the resulting impact, financial advisors recommend that investors should take a step back and focus on the long term; if history is an indication of the future, the markets may recover and proceed to reach new highs.<\/p>\n

In addition to planning, preparation and advisory services<\/a>, tax professionals can help their clients invest their money and save for retirement. However, many people stay away from investing their money because it seems complicated, they\u2019re afraid of losing money or don\u2019t have money to invest.<\/p>\n

Here are some investment tips to help guide you when you\u2019re meeting with your clients; feel free to share the below tips with your clients.<\/p>\n

How much to invest<\/b><\/p>\n

One rule of thumb is to try to save about 10 percent (or more) of your income, split between retirement vehicles and investing. It\u2019s wise to start as soon as you can, even if it\u2019s a small amount (maybe your tax refund), because of the compounded growth you realize over time.<\/p>\n

Try to maximize your retirement savings because of the incentives, such as tax deferrals and a company match. However, retirement accounts are for long-term investing and can come with restrictions, such as paying a penalty if you withdraw before age 59\u00bd.<\/p>\n

Some people establish an emergency fund in a savings account \u2013 maybe a couple of months of expenses. Otherwise, you may incur debt or have to raid your investment account, where you could encounter a penalty or a downward market fluctuation.<\/p>\n

If you\u2019re having a difficult time meeting your financial obligations such as rent or car payments, it might not be the best time to start investing until you\u2019re more financially stable. Also, think about paying off high-interest debt before making an investment; the interest rate may be higher than what you can earn in the market.<\/p>\n

Types of investments<\/b><\/p>\n