Category - Retirement

1
The Power of Tax-Free Income for High-Income Earners
2
Retirement Planning? Don’t Risk Not Knowing What Has Changed
3
Free Financial Advice has Hidden Costs: Motivations Matter
4
Roth IRAs Make Great Estate Planning Tools
5
Retiring Well When You Can’t Count on Relatives

The Power of Tax-Free Income for High-Income Earners

“A penny saved is a penny earned.” Many people attribute this quote to Benjamin Franklin. However, I would change this statement – especially for high-income earners – to “A penny saved is more than a penny earned.” Why? Because taxes can impact your earned income so much.

Those in the top income tax bracket pay 39.6% federal tax on earned income. If you live in a state like Indiana, there may also be state and/or county income taxes. FICA (Social Security and/or Medicare) taxes may also be applicable. But wait…there’s more. As your income increases, certain tax deductions may disappear, …

Read More

Retirement Planning? Don’t Risk Not Knowing What Has Changed

Retirement used to be something everyone looked forward to. A retirement party, a nice watch from your soon-to-be former employer and then home to an open schedule and a slightly smaller check. It was a “no brainer.”

retirement planning don't risk missing changesAs long as your smaller income covered your spending, the only other real planning was finding a hobby. Retirement was nearly as perfect as it looked in the advertisements.

Today, this isn’t the reality for most retirees. Investing and advice associated with retirement has changed. Financial planning for retirement is no longer reserved as a hobby for the well-to-do. It is a realm …

Read More

Free Financial Advice has Hidden Costs: Motivations Matter

Here is a common retirement investment scenario for Baby Boomers.  Mr. Jones is retiring and has different options available in his pension plan.

  • Option 1 – Accept a large lump sum, transfer it tax-free to an IRA and invest it for his future. He is personally accepting the risk of investing the money to help provide for the rest of his and his wife’s life.
  • Option 2 – Begin receiving guaranteed monthly payments for the rest of his life (and his wife’s life with survivor benefits).  This option places the risks and rewards of investing solely on the pension plan.
Read More

Roth IRAs Make Great Estate Planning Tools

A Roth IRA will protect your investments from its worst enemies: taxes and required distributions. Unlike their traditional counterparts, Roths don’t require you to begin withdrawals from the account once you reach the age of 70 1/2. With time on your side and your investments sheltered from taxes, your Roth will begin to experience what Einstein called the “greatest discovery of all time” – compounding interest.

If the tax-free growth of a Roth IRA isn’t enough to whet your appetite, the estate planning benefits it offers should seal the deal. Bequeathing a Roth is much the same as setting up …

Read More

Retiring Well When You Can’t Count on Relatives

retirement signLast week we discussed how mothers need to be aware of family finances, but what if you are not a mother? Sixty-something Sheila Sullivan Zubrod wrote a piece for The Washington Post about navigating her widowed mother’s later years and figuring out she herself can retire well. Women who have no children or find themselves without relatives to depend on can ensure a comfortable retirement when they plan ahead. In the category she refers to as Aging Solo, Zubrod includes, “…countless members of families plagued by addiction, disease, cults, rapacious children, even married progeny who much prefer their …

Read More

Copyright 2014 FiGuide.com   About Us   Contact Us   Our Advisors       Login