Retirement Planning in Orlando
Making Retirement Possible
If you are planning to retire, you won’t ever retire unless you speak
to the right investment firms. In retirement planning, your focus is on
accumulating assets to be able to spend them in retirement. The process
of retirement savings 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 retirement accounts 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.
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
Our financial advisors also review any savings options you have through
your employer. Many employers provide savings vehicles for their employees
in the form of 401k plan 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 and your
pension plan. 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 401k plan. 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 one of our financial
advisors to help you with retirement advice and 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 private
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 benefits. 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 and estate planning
contact our office at
(407) 629-6477 today!