What is Retirement Planning? 

The term Financial Planning encompasses many topics, none more popular than Retirement Planning.  From the day we start working, we imagine that magical time when we can finally be in a position to not have to work.  We have noticed that Retirement Planning has seemed to transform over the years. In the past, many of our clients could fire off a quick answer to the age at which they wanted to retire. 

Today, Retirement Planning has become much more about lifestyle planning, not just today, but for the rest of our clients lives. Many of our clients want to be in a position to not have to work, but plan to continue to work in some capacity.  So at its core, we believe retirement planning is a process of defining what that means and looks like for you and putting in place the strategies to allow a sustainable lifestyle after you “stop working”.  

What Are the Benefits of Retirement Planning?

Regardless of where you are on your journey, now is the time to begin Retirement Planning.  The sooner you can define what that means to you, the sooner you can align your actions and resources to ensure this will be sustainable.  In our experience, Retirement Planning has brought many benefits to our clients.

Common Benefits of Planning for Retirement Now

1. Less stress later on
2. Ability to make more efficient career-related financial decisions
3. Income tax reduction
4. Provide benefits to your heirs or your favorite charitable causes

How Does Retirement Planning work?

Retirement Planning is one piece of the overall Financial Planning Process.  When done properly, it is a by product of a sound financial planning experience. It involves a deep discussion about what you value, involves a lot of education, followed by action steps to move you closer to achieving that important milestone.

The Different types of Retirement Plan Options We Work With

401(k)s

A 401(k) plan is a tax-advantaged, defined-contribution retirement account offered by many employers to their employees. 

IRA’s

An IRA is a stand-alone tax deferred account that enables you to save money for retirement. It can also act as an investment account that gives you a place in which to roll over any employer-sponsored retirement plan assets like from a 401(k) when changing jobs or retiring. 

Traditional IRA’s

Contributions made to this account may be tax-deductible, and any individual who has earned income, or whose spouse has earned income, may contribute as long as the IRA account holder has not reached age 70½ by the end of the contribution year.

Roth IRA's

Contributions to Roth IRAs are not deductible from current income, but earnings may generally be withdrawn tax-free as long as the account has been in place for at least five years and the distribution takes place after age 59½. Depending upon state law, Roth IRA distributions may be subject to state taxes. There is no minimum distribution requirement and contributions are still allowed after you reach age 70½.

403(b)’s 

A 403(b) plan is a retirement savings plan for employees of public schools, non-profits and certain churches. This is a retirement plan in addition to any type of pension your employer may offer. With a traditional 403(b) plan your contributions are tax-deferred, meaning you pay taxes on the money when you take it out of the plan. With a Roth 403(b) plan you pay taxes on the contributions up front, but the money grows tax-free.

Annuities

An annuity allows a customer to deposit money (premiums) with an insurance company that can earn interest and grow on a tax-deferred basis with the agreement that the insurance company will then provide a series of payments back to the customer at regular intervals.

Pensions

A pension is a type of retirement plan that provides monthly income in retirement. Not all employers offer pensions. Government organizations usually offer a pension, and some large companies offer them.

CD’s

A certificate of deposit (CD) is a product offered by banks and credit unions that offers an interest rate premium in exchange for the customer agreeing to leave a lump-sum deposit untouched for a predetermined period of time.

Common Questions and Concerns We Hear About Retirement

We've helped our clients retire with confidence by helping them get answers to questions like: 

1. Will I run out of money?
2. How do market conditions affect me?
3. What happens to my money if I die?
4. Will I have access to my money?
5. Can I afford to retire?
6. When Should I Begin Taking Social Security?
7. How Long Will My Money Last?
8. How Much Money Do I Need to Retire?
9. Should I Buy an Annuity?

Have you asked yourself any of the questions from above? Then schedule a free consultation with us today so we can help.