Retirement Planning in Orlando
Making Retirement Possible
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, life insurance, long-term care insurance, health care protection, annuities, mutual funds, rental income, stocks, bonds, and income from your various investments like a real estate investment trust.
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 allows you to effectively save more due to the resulting tax savings in the current year. An income planning consultation will help you determine this.
The next step of this retirement accounts process involves looking at various forms of debt, such as:
- Mortgage
- Car Loans
- Credit Card Debt
- Student Loan Debt
Our Strategy for Your Retirement
Our first focus is providing strategies to pay off items with 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 and looking at tax saving strategies are typically the next steps in planning for your retirement.
Our certified financial experts and tax professionals will look at prior year tax returns to determine your marginal tax bracket and determine whether any changes need to be made to your tax withholding at work. For example, if you get a large refund, you may be better off adjusting your tax withholdings and saving more monthly. In other situations, depending on total income, you may 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 plans, medicare plans, 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 employer retirement 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 tax saving for contributions to an IRA, which provides a tax deduction similar to that of an employer 401k. Otherwise, it is possible to establish alternative investment accounts that can help you accumulate money for retirement.
Understanding Your Investment Options
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 and long-term care planning. When you leave your employer, we encourage you to roll over 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.
