Retirement Income Planning

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Retirement income strategies are not just for the wealthy. As retirement nears, the traditional strategy has been to move growth-seeking products to more conservative, fixed-income products. According to a recent study, for a married couple age 62 there is now a 65 percent chance that at least one spouse will live to age 85.1 This means that you may need to plan for your retirement savings to potentially last 25 to 30 years.

One drawback to a longer life is the greater possibility of outliving your savings — creating all the more reason to develop a retirement income strategy designed to last a longer lifetime. A significant loss in the years just prior to and/or just after you retire could negatively impact the level of income you receive over the course of your life.

We can help you design a solid retirement income strategy that creates opportunities for long-term growth as well as blending in strategies to provide income throughout your retirement.

When and how you should take your Social Security income benefits?

• When and how to elect Social Security Benefits is a decision that every retiree must face. Recent studies show that approximately only 22% of financial professionals understand Social Security or how to properly integrate benefits into a financial plan.*
  
• For many retirees, Social Security could account for more than 60% of their future income.** The problem is that some retirees spend more time booking a flight than they do making one of the largest financial decisions of their life.
  

During an EDUCATIONAL Workshop – you will learn:

• Common misconceptions about Social Security-Including what Social Security personnel can and can’t do
  
• Timing is everything! How to properly coordinate Social Security benefits with your spouse and other sources of retirement income
  
• How Public Pension income affects Social Security benefits
  
• Learn how you can optimize your benefit with techniques the Social Security office won’t tell you about
  
• Strategies that may minimize or eliminate taxes on Social Security benefits
  
• How to incorporate Social Security into your Income Distribution Strategy
  

Call our office today to sign up for our next workshop, 937-498-1128

Estate Planning

At a minimum, every adult should have a will, a durable power of attorney, and a health care proxy.  A durable power of attorney designates an individual to control their financial affairs if they become incapacitated, while a health care proxy delegates health care decisions to a third person when they are unable to make those decisions.

We can refer you to professionals to help meet your individual needs.

Estate planning is simply determining (while you’re still alive) where your assets should go after you die. Without a properly structured estate plan, your wishes may not be fulfilled, and there may be unintended consequences for your loved ones.

While the concept is simple, the vehicles, planning and implementation process can be rather complex. Because of the estate tax laws and the emerging vehicles to help you protect and transfer your assets effectively, it’s important to work with experienced estate planning professionals who stay current in this field and advise clients on a day-to-day basis.

IRA Assets

While there are a variety of vehicles available to help you ensure your assets are distributed appropriately after your death, IRAs have become increasingly popular vehicles for providing for one’s beneficiaries. If you don’t anticipate needing your IRA money in retirement, you may wish to consider a legacy planning strategy that potentially reduces taxes and potentially increases the payout your beneficiaries will receive upon your death. We can refer you to professionals to help you evaluate your financial situation to determine if IRA legacy planning could help you meet your goal of structuring a long-lasting inheritance for your beneficiaries.

Trusts

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 can also provide current benefits, such as tax deferral and deductions. Unlike a will, a trust may help 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 who can assist you with these issues.

Tax Planning

Rising taxes may be a concern for many individuals approaching retirement. It may be important to incorporate tax planning into your financial decisions.

We can refer you to professionals to help meet your individual needs.

Investing in or purchasing a tax-deferred vehicle means your money can compound interest for years, free from income taxes, potentially allowing it to earn interest at a faster rate. Few financial vehicles avoid taxes altogether. Insurance products only allow you to defer paying them until retirement — when you may be in a lower tax bracket.

Tax considerations are also of particular concern when making a decision about what to do with assets in an employer-sponsored retirement plan when you change jobs or retire.  There are generally four things you can do with such assets:

• Leave the money where it is
• Take the cash (and pay income taxes and perhaps a 10 percent additional federal tax if you are younger than age 59½)
  
• Transfer the money to another employer plan (if the new plan allows)
• Roll the money over into an IRA
  

Rolling over these assets 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.