Retirement Planning in Orlando
Making Retirement Possible
If you don’t plan for retirement, you won’t ever retire. In
retirement planning, your focus is on accumulating assets to be able to
spend them in retirement. The process of planning for retirement involves
several unique steps. First, retirement planning starts by looking at
your current income. Your income is typically where your retirement savings
will come from. There are many types of income ranging from regular earned
income, self-employment income, rental income, stock options and income
from your various investments.
Depending on the nature of your income, it may be possible to save some
of this income on a tax-deferred basis. Saving on a tax-deferred basis
allow you to effectively save more due to the resulting tax savings in
the current year.
The next step of this process involves looking at various forms of debt, such as:
- Car loans
- Credit card debt
- Student loan debt
Our Strategy for Your Retirement
Our first focus is providing strategies to pay off items ith a high-interest
rate and debt.
Once this is done, our financial advisors concentrate on saving you money
for retirement. Debt needs to be addressed first because if you are still
paying off your credit cards in retirement, then chances are you won’t
be able to fully retire when you want to. A review of your tax situation
is typically the next step in planning for your retirement.
Our certified financial advisors will look at prior year tax returns to
determine your marginal tax bracket and determine whether any changes
need to be done to your tax withholding at work. For example, if you got
a large refund, you may be better off adjusting your tax withholdings
and savings on a monthly basis. In other situations, depending on total
income, you may actually be eligible for a tax credit for your retirement savings.
Savings Through Your Employer
We also review any savings options you have through your employer. Many
employers provide savings vehicles for their employees in the form of
401(k) or similar options. These types of employer-sponsored plans typically
provide matching dollars from the employer for your contributions. This
is one way that you can effectively boost your retirement savings by taking
advantage of these employer contributions.
Our financial consultants will help you review these options so that you
properly understand your potential retirement savings benefits. If your
employer does not offer any such options, then we review the option of
funding an Individual Retirement Account (IRA). If eligible, there is
a similar tax saving for contributions to an IRA just like a 401(k). Otherwise,
it is possible to establish alternative tax accounts that can help you
accumulate money for retirement.
Understanding Your Investment Options
The last step in this process is sitting down with us to help you determine
the proper allocation of your 401(k), 403(b), deferred compensation, or
similar employer-sponsored retirement plan. Many of these plans change
frequently and have limited investment options. We can help you select
the best available investment option for your plan and discuss the specifics
of your retirement with you.
The criteria that affect your investment options include:
- Time Horizon
- Goals and objectives
- Individual’s risk tolerance
The further you are from retirement, the more you will need a growth orientation
on your retirement assets. When you leave your employer, we encourage
you to rollover your old account to an IRA for a variety of reasons. First,
the investment options are broader in an IRA, which gives you more options
when you retire. Second, the options of your beneficiaries to defer taxes
are greater in an IRA. Lastly, an IRA allows you to set your tax withholding
rather than the automatic 20% that applies to employer-sponsored plans.
For more information regarding our retirement planning solutions,
contact our office at
(407) 629-6477 today!