Setting the Expectation for Retirement Planning
We understand how impossible it may feel to discuss a goal that is so far out in time. To expect to know exactly what your budget will be a few years from now is challenging let alone knowing what it will be 20-40 years from now. To address this, we take a different, two pronged approach. We start by not just asking the age old question of “How much money do you want when you retire?” but rather review your monthly expenditures to separate out expense categories and provide a more thoughtful number.
Our second prong addresses one fact about life that we cannot control. It is unpredictable. Our plan is to continually review this with you as life events occur. Your plan will address them and adapt appropriately. We accomplish this through our leading edge financial planning software backed by 1,000 different market outcome simulations.
Setting the Expectation for Retirement Planning
We understand how impossible it may feel to discuss a goal that is so far out in time. To expect to know exactly what your budget will be a few years from now is challenging let alone knowing what it will be 20-40 years from now. To address this, we take a different, two pronged approach. We start by not just asking the age old question of “How much money do you want when you retire?” but rather review your monthly expenditures to separate out expense categories and provide a more thoughtful number.
Our second prong addresses one fact about life that we cannot control. It is unpredictable. Our plan is to continually review this with you as life events occur. Your plan will address them and adapt appropriately. We accomplish this through our leading edge financial planning software backed by 1,000 different market outcome simulations.
What is Retirement Planning?
Retirement planning refers to the method of deciding retirement goals and the steps and choices needed to obtain those goals. Retirement planning has a wide scope of variables that need to be factored in when determining your strategy.
These variables include what sources of income you’ll have, as well as estimating your expenses, implementing a savings program, and managing assets and risks. In the retirement planning process, a financial strategy is put in place to evaluate the amount of savings, investment and distribution of the money you’ll need to sustain your lifestyle during retirement.
Consider retirement planning as a life-long process. That doesn’t mean that you have to start saving right away, but you’ll be thanking yourself in the future if you factor it in from the get-go. By starting your planning early, you’ll have a better idea of what needs to happen to hit your retirement goals. This ensures that your retirement plan is safe and secure. It’s better to start with the mundane part of planning early so you guarantee you’ll have fun in retirement.
There are a variety of ways to invest or save for retirement but two of the most common methods are setting up and IRA or a 401(k) for yourself. These methods of savings offer special tax advantages making it a great way to save additional money without it being taxed right away.
Retirement planning has its own lifecycle and goes through different stages. Early in your career, a retirement plan is more about putting aside enough money for retirement. As your career advances, it adapts to include setting specific income or asset targets and what steps you’ll need to take to achieve them. By taking this approach, you’ll be in the distribution stage when retirement comes around. You’ll no longer be paying into your retirement account, but instead it’s paying out to you now.
With continually evolving requirements on retirement plans, we begin by taking a step back. Retirement plans can be utilized not only to provide benefits, but can be structured several ways to accomplish goals. These may be retaining talent, compensation plans for executives, or lowering taxable income. Finally, our added transparency and fiduciary relationship ensures our clients do not take on unnecessary risk.
What is Retirement Planning?
Retirement planning refers to the method of deciding retirement goals and the steps and choices needed to obtain those goals. Retirement planning has a wide scope of variables that need to be factored in when determining your strategy.
These variables include what sources of income you’ll have, as well as estimating your expenses, implementing a savings program, and managing assets and risks. In the retirement planning process, a financial strategy is put in place to evaluate the amount of savings, investment and distribution of the money you’ll need to sustain your lifestyle during retirement.
Consider retirement planning as a life-long process. That doesn’t mean that you have to start saving right away, but you’ll be thanking yourself in the future if you factor it in from the get-go. By starting your planning early, you’ll have a better idea of what needs to happen to hit your retirement goals. This ensures that your retirement plan is safe and secure. It’s better to start with the mundane part of planning early so you guarantee you’ll have fun in retirement.
There are a variety of ways to invest or save for retirement but two of the most common methods are setting up and IRA or a 401(k) for yourself. These methods of savings offer special tax advantages making it a great way to save additional money without it being taxed right away.
Retirement planning has its own lifecycle and goes through different stages. Early in your career, a retirement plan is more about putting aside enough money for retirement. As your career advances, it adapts to include setting specific income or asset targets and what steps you’ll need to take to achieve them. By taking this approach, you’ll be in the distribution stage when retirement comes around. You’ll no longer be paying into your retirement account, but instead it’s paying out to you now.
With continually evolving requirements on retirement plans, we begin by taking a step back. Retirement plans can be utilized not only to provide benefits, but can be structured several ways to accomplish goals. These may be retaining talent, compensation plans for executives, or lowering taxable income. Finally, our added transparency and fiduciary relationship ensures our clients do not take on unnecessary risk.
Benefits of Retirement Planning
Compounding Interest on your Investments
One major advantage to retirement planning is taking advantage of compounding interest on your investments. Compounding interest offers many financial rewards. This is especially true if you start saving for retirement early. Calculate the interest on the initial principal plus add on the accumulated interest of previous periods to yield your compounding interest.
Earn Tax Benefits
Tax benefits are another great advantage to starting a retirement plan. Most of these benefits people are even unaware of. Roth IRA and Roth 401(k) offer a type of strategy where you will not have to pay taxes when the money is disbursed. Traditional IRA’s offer immediate tax benefits, but you will pay taxes when you take out money in retirement. A Roth IRA offers benefits later, which give you a tax-free retirement savings. Tax planning is critical to your retirement plans and needs to be included in discussion with your advisor.
A Stress-Free Lifestyle
One of the most important benefits is the stress-free life a retirement plan provides. By planning and having everything mapped out for your goals and aspirations in retirement, you’ll finally be able to relax and enjoy a worry-free life when the time comes. You’ll be more independent, be able to afford what you need, and travel and enjoy your golden years while having peace of mind.
Retire Earlier
There’s a good chance you might be able to retire early with the right plan and some luck. If you have a solid plan in place and stick to your goals, there’s a good chance you’ll get ahead of schedule. This gives you the option to call it quits sooner and enjoying your retirement years.
Allows You to Manage Expectations
Having a retirement plan will ensure you and your family are all on the same page. This usually falls between you and your spouse but it’s important that you both are on the same page. Especially that you have the same expectations as to what you want in retirement. By doing this you guarantee that you have enough money saved to live the lifestyle that you envisioned for retirement.
Discover Potential Financial Issues
You can put your financial issues into context by starting a retirement plan. This is extremely important as it allows you to view how the issue might have occurred. It also allows you to plan how to overcome such hurdles and ensure you stay on path to your retirement goals.
Establish Your Legacy
Retirement planning doesn’t only benefit you and your spouse but also with your legacy. The proper plan ensures your heirs or favorite charitable causes are set up to benefit after your gone.
Benefits of Retirement Planning
Compounding Interest on your Investments
One major advantage to retirement planning is taking advantage of compounding interest on your investments. Compounding interest offers many financial rewards. This is especially true if you start saving for retirement early. Calculate the interest on the initial principal plus add on the accumulated interest of previous periods to yield your compounding interest.
Earn Tax Benefits
Tax benefits are another great advantage to starting a retirement plan. Most of these benefits people are even unaware of. Roth IRA and Roth 401(k) offer a type of strategy where you will not have to pay taxes when the money is disbursed. Traditional IRA’s offer immediate tax benefits, but you will pay taxes when you take out money in retirement. A Roth IRA offers benefits later, which give you a tax-free retirement savings. Tax planning is critical to your retirement plans and needs to be included in discussion with your advisor.
A Stress-Free Lifestyle
One of the most important benefits is the stress-free life a retirement plan provides. By planning and having everything mapped out for your goals and aspirations in retirement, you’ll finally be able to relax and enjoy a worry-free life when the time comes. You’ll be more independent, be able to afford what you need, and travel and enjoy your golden years while having peace of mind.
Retire Earlier
There’s a good chance you might be able to retire early with the right plan and some luck. If you have a solid plan in place and stick to your goals, there’s a good chance you’ll get ahead of schedule. This gives you the option to call it quits sooner and enjoying your retirement years.
Allows You to Manage Expectations
Having a retirement plan will ensure you and your family are all on the same page. This usually falls between you and your spouse but it’s important that you both are on the same page. Especially that you have the same expectations as to what you want in retirement. By doing this you guarantee that you have enough money saved to live the lifestyle that you envisioned for retirement.
Discover Potential Financial Issues
You can put your financial issues into context by starting a retirement plan. This is extremely important as it allows you to view how the issue might have occurred. It also allows you to plan how to overcome such hurdles and ensure you stay on path to your retirement goals.
Establish Your Legacy
Retirement planning doesn’t only benefit you and your spouse but also with your legacy. The proper plan ensures your heirs or favorite charitable causes are set up to benefit after your gone.
FAQ’s Regarding Retirement Planning
This answer will be different for everyone. The best way to try and calculate this number is to add up all of your expected retirement income (investments, pensions, social security, etc.) then subtract all expected expenses (housing, utilities, taxes, food, etc.) to yield a figure of how much you’ll need for retirement.
When you’re married, the retirement accounts go to your spouse unless you name another beneficiary beforehand. Say that you are single, it will go to your beneficiary that you select. If you did not select a beneficiary then the accounts will become part of your estate.
First, you’ll establish what you want to realistically attain financially. Everyone’s financial goals will differ from wanting to travel, a vacation home, retirement living, etc. You need to include what goals you want to achieve when determining your strategy.
An Individual Retirement Account (IRA) is a savings account that’s main purpose is to save for retirement and provides tax advantages for the individual that opens the account. There are several different types of IRA’s including Traditional, Roth, SEP, SIMPLE, and Educational IRA’s.
Traditional IRAs defer taxation of investment income and withdrawals are taxable income—except for withdrawals of previously non-deductible contributions. In most cases contributions are deductible. Roth IRAs are subject to a lot of the same rules as Traditional IRAs, but there are several differences, the primary one being that contributions are not deductible and are made after tax. As such, qualified distributions are generally tax-free.
Estate planning is the method of creating personal and legal arrangements during an individual’s lifetime. This plan guarantees the transfer of their assets is done in a manner that fulfills the individual’s goals.
A succession planning is an important step of a business owner deciding who the ownership of the business will transfer to when the appropriate time comes.
An investor gives funds to an insurance company. The insurer invests the funds. At the end of the annuity’s term, the insurer pays the investor his or her investment plus the earnings. The amount paid at maturity may be a lump sum or an annuity, which is a set of periodic payments that are guaranteed as to amount and payment period. Earnings that occur during the term of the annuity are tax-deferred and an investor is not taxed until the amounts are paid out. Because of the tax deferral, your funds have the chance to grow more quickly than they would in a taxable investment.
FAQ’s Regarding Retirement Planning
This answer will be different for everyone. The best way to try and calculate this number is to add up all of your expected retirement income (investments, pensions, social security, etc.) then subtract all expected expenses (housing, utilities, taxes, food, etc.) to yield a figure of how much you’ll need for retirement.
When you’re married, the retirement accounts go to your spouse unless you name another beneficiary beforehand. Say that you are single, it will go to your beneficiary that you select. If you did not select a beneficiary then the accounts will become part of your estate.
First, you’ll establish what you want to realistically attain financially. Everyone’s financial goals will differ from wanting to travel, a vacation home, retirement living, etc. You need to include what goals you want to achieve when determining your strategy.
An Individual Retirement Account (IRA) is a savings account that’s main purpose is to save for retirement and provides tax advantages for the individual that opens the account. There are several different types of IRA’s including Traditional, Roth, SEP, SIMPLE, and Educational IRA’s.
Traditional IRAs defer taxation of investment income and withdrawals are taxable income—except for withdrawals of previously non-deductible contributions. In most cases contributions are deductible. Roth IRAs are subject to a lot of the same rules as Traditional IRAs, but there are several differences, the primary one being that contributions are not deductible and are made after tax. As such, qualified distributions are generally tax-free.
Estate planning is the method of creating personal and legal arrangements during an individual’s lifetime. This plan guarantees the transfer of their assets is done in a manner that fulfills the individual’s goals.
A succession planning is an important step of a business owner deciding who the ownership of the business will transfer to when the appropriate time comes.
An investor gives funds to an insurance company. The insurer invests the funds. At the end of the annuity’s term, the insurer pays the investor his or her investment plus the earnings. The amount paid at maturity may be a lump sum or an annuity, which is a set of periodic payments that are guaranteed as to amount and payment period. Earnings that occur during the term of the annuity are tax-deferred and an investor is not taxed until the amounts are paid out. Because of the tax deferral, your funds have the chance to grow more quickly than they would in a taxable investment.
