Tax-advantaged accounts, or qualified accounts, allow your portfolio to grow without the impact of taxes, a major benefit when it comes to savings for your goals. For retirement, there are multiple account options to choose from, and tax rules will most likely vary for each of them. It is very important to remember, however, that where you end up focusing your contributions may likely change over time depending on your life stage and tax situation. Call us, we’re happy to discuss with you what some of your options are and how they relate to where you are in your planning today, and what your goals are for the future.
Slow and steady wins the race is an idiom we have all heard, but rarely do we think to apply it to how we approach retirement planning. Taking a slower, more consistent approach often leads to a better outcome. It is easy to forget that and to take risks in order to ‘catch up’. With retirement planning there is no need to do that. There are products where your principle can be protected from market downturns so you never ‘go backwards’ and where you can still earn a reasonable rate of return during all those long years of retirement that you worked so hard to save for. Call us, we’re always here to help and can tell you more.
This week’s article focuses on the fact that while “everyone’s retirement is different, 2022 is going to have some big differences from 2021 that will affect almost every retiree and retirement saver to some degree”. We’ve provided you with a link to the article so that you can see the specifics on what those differences are, including higher social security payouts, standard deductions for your federal income taxes, Medicare premiums, social security payroll taxes and estate tax exclusions; along with changes to retirement plan distributions and contributions. Call us if these changes require you to rethink your retirement planning. We’re always here to help.
You’ve saved for years and have finally retired, and yet, there are so many world events going on, both domestically and abroad that the only constant now is change. The news is full of commentaries about market declines and inflation. What can be done to reduce those risks? Sometimes it is as simple as sticking with quality financial products with proven track records and assurances that you can count on. Call us, we’re happy to discuss this further with you. We’re always here to help.
We’ve received questions from some of our readers asking what a hike in the Fed rate means to them, and so we reached out to an investment strategist to see what was being said. “This year’s expected series of rate hikes, the first since 2015, marks the beginning of Fed Policy normalization. But it also has increased market volatility and changed sector leadership so far this year.” This opinion is consistent with other’s view that this will likely mean more volatility and pressure in market valuations. If this is of concern to you, call us and we can tell you about other financial products available where savings can be put without risk of loss to the principle if the market declines. We’re always here to help.
With the due date for filing tax returns fast approaching, you may be getting ready to make your 2021 contribution into your IRA or other qualified account. Since we are already into 2022 you can take advantage of that and consider doubling down and also making your contribution for this tax year. It gives you that much more time for the savings to work especially with options that may provide even greater income streams then were previously available. Call us, we’re always here to help.
With so much going on around us in the market, it is difficult for many of our clients to have time to hit pause and think about the impact of taxes on their retirement savings. We thought to make it easier for you by sharing an up-to-date 2022 Tax Reference Guide for a quick glance at important tax filing information for the 2021 tax year. This information may also bring to mind questions you have for 2022 planning, and a desire to discuss what changes in your retirement savings should perhaps occur for you to better maximize your cash flow in future years. Call us, we’re always here to help.
Most of us are asking what impact Russia’s invasion on Ukraine has on us personally, and NBC News helped answer that question– at least for those who are retired teachers in Kentucky. The Kentucky Teachers’ Retirement System lost more than $3 million last week in selling off its direct investments in a Russian bank the day before Russia invaded Ukraine, the pension fund said in a statement. Many pension funds across the United States are similarly divesting themselves of any Russian investments, and doing so at any cost. This means recipients of those pension checks may need assistance in determining how this impacts their personal bottom line. Call us, we can help you navigate the impact and may have some ideas that can help.
We are well into tax season which means more and more individuals are beginning to think about their tax refunds, and what to do with them. The answer always relates to how healthy the individual’s cash flow is. If you like the feeling of getting a “windfall” in the form of a tax refund, you should take the time to shop around for good options for where to put that money. There may be options that didn’t exist this time last year and so you may not be aware of them. Call us, we’re always here to help and will certainly let you know of the new options we are aware of. If you know that check is coming, plan ahead on where to put it. Timing sometimes means you end up with more money in the end when you want it most.
Plenty of factors go into understanding whether you are on track to meet your financial goals for retirement, including not just what you have set aside in savings and investments, but your rate of return, and inflation. With the ever-changing market conditions, and higher than usual inflation it is important to check to see if you are still on track. Walk through the investment goal calculator in this week’s article and see what you think. If factors you can’t control like the market or inflation has undermined where you thought you were, we may have a new option to help you get back on track. Call us, we’re always here to help.