Retirement Planning

A 65-year-old person today could live as many as 30 years in retirement today. Longer life spans have created new growth opportunities. Through proper planning, this stage of your life can be a time for relaxation and celebration.

• Will my funds last the rest of my life?
• How am I going to fund my retirement?
• How, and when, will my social security benefit come into play?
• Will my healthcare needs be met?
• Is my estate in order?
• How will my work benefits help me make ends meet in the future?
• Individual Retirement Account or Roth IRA? What’s the best solution for me?

Through careful assessment, we will be able to identify what your needs will be and how much you’ll need to live comfortably. We will help prepare a plan that’s designed to generate growth that lasts for your retirement years.

Prepared retirees usually rely upon three main sources of income: Social Security, individual or employer-sponsored qualified retirement plans, and their own savings or investments. A sound retirement plan will emphasize qualified plans and personal savings as the primary sources, with Social Security as a safety net for steady income.

If you were born after 1960, you can receive full social security benefits at age 67. Benefits are based upon your earnings while you were working, so the amount is different for each individual. If you would like to continue to work and delay receiving benefits, you could do so, and build up a larger benefit. Conversely, early retirement benefits are available, at a reduced level, as early as age 62.

A longer lifespan will most likely require more medical expenses. Planning for your long-term care in the event of a serious disability or chronic illness is a key element of retirement planning.

Planning for the transfer of assets at death is a critical element of your retirement planning. Proper planning can protect your estate from settlement costs and taxes. We can help you protect your assets and gain peace of mind knowing that you have taken care of these details.

If you have an Employer Sponsored Plan, the funds you receive at retirement are based on your total contributions while you were working, the returns earned, and your retirement time horizon. As with all qualified plans, withdrawals made prior to age 59 ½ may be subject to a penalty of 10% on top of ordinary taxes that are due.

An Individual Retirement Account (IRA) is a tax qualified retirement plan that’s been established as a way to save for retirement with the benefit of tax favored treatment. Distributions from traditional IRAs and employer-sponsored retirement plans are taxed as ordinary income and, if taken prior to reaching 59 ½, may be subject to an additional 10% federal tax penalty.

A Roth IRA is different in that the contributions are not tax deductible; however, the earnings growth is not currently taxable. To qualify for tax-free and penalty-free withdrawals of earnings, a Roth IRA must be in place for at least five tax years, and the distribution must take place after age 59 ½ or due to death, disability, or a first-time home purchase (up to a $10,000 lifetime maximum). Depending on state law, Roth IRA distributions may be subject to state taxes.

Whether it’s an Individual Retirement Account (IRA) or a ROTH IRA, we can recommend the best solution when it comes to selecting a retirement account for your individual needs.