Unfortunately, many people are still investing the same way they have for the past 30 or 40 years, not realizing how significantly the world of investing has changed. The old methods clearly won’t work anymore, but many people have no idea what will work. The overwhelming majority of retirement planning and investing is still done with the premise that the stock and/or bond markets will always go up over the long term. But the two most important questions to ask are these: Is that always true, and how long is long term? History shows us multiple decades in which this premise has not been the case. If someone is unfortunate enough to retire when the market goes flat or during a protracted down market, he or she faces the real risk of running out of money.
Let us educate you on how to take the guesswork out of investing for retirement. We will expose the failures inherent in traditional methods of retirement planning, and give you a new way to think about money and investing, a concept we call Lifestyle Driven Investing.
IRA Legacy Planning
IRA accounts have become one of the largest types of assets inherited by beneficiaries. If you don’t anticipate needing your IRA money in retirement, you may wish to consider a legacy planning strategy to reduce taxes and increase the payout your beneficiaries will inherit upon your death.
A properly structured IRA may provide your beneficiary(ies) a regular stream of income while leaving the balance of IRA assets invested for tax-deferred growth. The result may yield substantially more money paid out over the course of your beneficiary’s lifetime. We can help you evaluate your financial scenario to determine if IRA legacy planning may be the best means for ensuring a long-lasting inheritance for your heirs.
There are many different types of trusts, and they can be complex to set up and execute. However, a trust can be a very flexible and advantageous means to transfer your assets in the future. Most trusts also provide current benefits, such as tax deferral and deductions. Unlike a will, a trust will avoid probate upon your death. To learn more about trusts and how they may benefit you, we will be happy to help you consult a qualified estate planning attorney that specializes in these matters.
Creating a charitable gift giving plan may provide you with multiple tax breaks: an income tax deduction, the avoidance of capital gains on highly appreciated assets and no estate taxes on the charitable contribution upon your death.
With the increasing tax environment we expect in the U.S. in coming years, there may be compelling reasons to integrate philanthropy into your financial and estate planning.
IRA & 401k Rollovers
When you change jobs or retire, there are four things you can do with the money in your employer-sponsored retirement plan:
- Leave the money where it is
- Take the cash (and pay income taxes and perhaps a 10% federal penalty tax if you are younger than age 59½ )
- Transfer the money to another employer plan (if the plan allows)
- Roll the money over into an IRA
Rolling over from one qualified plan to another qualified plan allows your money to continue growing tax-deferred until you receive distributions in retirement. We can help you determine if a rollover is the right move for you, and we can help find the best vehicle for your situation to help conserve and grow your rollover assets.
Neither the Company nor its agents or representatives may give tax, legal, or accounting advice. Individuals should consult with a professional specializing in these areas regarding the applicability of this information to his/her situation.