ABOUT RETIREMENT PLANNING
According to the U. S. Department of Labor, in its “Taking the Mystery Out of Retirement Planning” publication of December 2014,
“For many Americans, retiring in this century is a mystery. Earlier generations of workers could rely on employer-provided pensions, but now many workers will need to rely on their own work-related and personal savings plus Social Security benefits. These savings have to last longer because Americans are living longer, often into their eighties and nineties”.
Our goal at INSURANCE GLOBE PARTNERS, is to resolve the mysteries in the retirement planning process of our clients.
The biggest two mysteries associated with retirement planning, are:
- FIRST – Not knowing how much TAXES will be when we retire. It is safe to say that most folks will agree that taxes will, most likely, if not definitely, will be higher as time goes by. So, the question is not whether taxes will go up between now and retirement day, but by how much.
- SECOND – The other mystery in the retirement equation is the UNCERTAINTY OF THE INVESTMENT PERFORMANCE related to the investment vehicles that traditionally have been chosen to place contributions to retirement plans. Both equities and fixed income, which have been the investments of choice for retirement funds, follow a pattern of sometimes wild fluctuations, and so do the retirement funds using equities (stocks) and fixed income (bonds) to invest retirement assets. When you invest in equities and/or bonds, you really do not know how much you will have 5, 10, 15, 20, 25, 30 years down the road. It is a mystery!
We have solutions to both of the above and would like the opportunity to discuss same with you, so that you can make an informed decision in regards to where to place your hard earned retirement moneys so that there are no mysteries in your retirement plans.
NOW IS THE TIME TO START A RETIREMENT PLAN
This is exactly what the IRS says on its website, namely, NOW IS THE TIME TO START A RETIREMENT PLAN. The reasons stated by the IRS are the following:
- Greater Security – The sooner you start saving for retirement, the more financially secure you and your employees can be in later years. Even small contributions can make a big difference over time.
- Lower Taxes – Contributions are usually tax-deductible. You may even get a tax credit for starting a plan.
- Grow More – Retirement savings grow faster in a plan thanks to tax-free compounding.
- Reduce Employee Turnover – A (retirement) plan helps attract and keep good employees.
- Many Low-Cost Choices – There is a retirement plan for every business.
By the way, you can see the IRS document that says, verbatim, the above, by clicking NOW IS THE TIME TO START A RETIREMENT PLAN.
Learning how to save for retirement, includes determining how much money you will need or want to have when you retire. Early retirement planning is important. The amount of money you want to have when you retire is a moving target for a lot of, or most, people and should be reviewed annually. Depending on the results of the review, you will need to make annual adjustments to your retirement saving plan. We can help you with this.
We can help you calculate the amount of money you will need to achieve the retirement style you seek, taking into account your personal and financial situation now and the financial goals to be met in connection with your plans for retirement. Using a retirement planning calculator would be the right tool to help you determine the amount of money you need to have when you retire. We have developed a retirement planning calculator for this purpose. So let’s calculate how much money you will need, or want to have at retirement. We will enter your data into our RETIREMENT CALCULATOR, and will be able to estimate how much you will need, or want, to have to retire whatever number of years down the road and in whatever retirement style you choose and can afford. Then you will know how much money you need to put away ever year and which accumulation vehicle (stocks-bonds-fixed annuities-universal indexed annuities-etc.) meets your risk tolerance level. You can actually start the process of calculating the amount of money you need to accumulate for retirement purposes. Just click on RETIREMENT CALCULATOR, and enter, and re-enter, your data until you feel comfortable you have an amount of retirement funds you feel comfortable with.
Call as soon as possible our Local Miami Number (786) 353-2528; or our Toll Free Number (888) 950-8376 for English; or, (888) 510-1557 for Spanish, so that you can get this process started.
DO YOU NOW PARTICIPATE IN A RETIREMENT PLAN SPONSORED BY YOUR EMPLOYER?
Many individuals work for corporations, municipalities and similar employers who provide 401(k) and/or other types of retirement plans, whether defined benefit, defined contribution, insured retirement plan, etc.. These employees should consider themselves lucky. Most likely these retirement vehicles, coupled with Social Security benefits, will go a long way to take care of their retirement needs, assuming they arrive at retirement age with not too much debt and a healthy savings account.
If you are a participant in one of these plans, do take into account the following:
401(k) (a qualified defined contribution plan)
- Participant/employee contributions are generally tax deductible
- Withdrawals are subject to taxes on both contributions and earnings
- Participants/employees in the plan bear the investment risks
Qualified Defined Benefit Retirement Plan
- Employer typically makes contributions on behalf of employee
- Withdrawals are subject to income taxes
- Employer bears the investment risks
There may be a FINANCIAL GAP in your retirement
- Qualified plans and IRAs have limits on the amounts that can be contributed to them
- Both employer and employee contributions may be limited due to nondiscrimination testing
- There are coverage limitations with respect to highly compensated employees
- There is a limit/cap on Social Security benefits
- All of the previous items may impact the ability of highly compensated employees to accumulate enough for retirement to maintain their standard of living
WHAT IF YOU ARE NOT NOW A PARTICIPANT IN AN EMPLOYER-SPONSORED RETIREMENT PLAN?
If you are not currently participating in an employer-sponsored qualified plan, and would like to start providing for your retirement, a TRADITIONAL IRA or a ROTH IRA, may be what you need.
Here is a comparison of TRADITIONAL IRA vs. ROTH IRA
Call our Local (Miami) Number (786) 353-8376; or our Toll Free Number (888) 950-8376 and we can guide you through the process of establishing either a Traditional IRA or a Roth IRA.
LIFE INSURANCE PROVIDES DEATH BENEFITS AND CAN HELP SUPPLEMENT YOUR RETIREMENT INCOME
If you are concerned about the financial protection of your family should something happen to you, while also being uneasy about the future, and are also falling short of retirement income, you may want to consider an insured retirement plan. The death benefit that life insurance provides can help your family pay the mortgage, utility bills, and other expenses should you die prematurely.
Now, imagine your retirement. What will you do? Where will you go? There may be roadblocks on the way to your retirement destination, but you can help bridge an income shortfall with permanent life insurance. You gain death benefit protection not only during your important working years, but also in retirement. In the event of death, the proceeds are distributed to your beneficiaries, generally income tax free.
Your premium payments into a permanent life insurance policy may accumulate cash value on a tax-deferred basis. Through policy loans and withdrawals, the cash value may then be used during retirement as a source to supplement income. Cash value from your policy may be used for anything-from a monthly cell phone bill to a favorite travel destination.
WHY USE LIFE INSURANCE TO HELP SUPPLEMENT YOUR RETIREMENT INCOME
A retirement insurance plan can help you with the two unknowns – the loss of income from a premature death and having sufficient income to enjoy your retirement. With life insurance –
- you gain death benefit protection not only during your important working years, but also in retirement. In the event of death, the proceeds are distributed to your beneficiary(ies), generally income tax-free.
- Your premium payments into a permanent life insurance policy pay for the insurance coverage and expenses and a portion may accumulate cash value on a tax-deferred basis. Through policy loans and withdrawals, the cash value may then be used during retirement as a source to help supplement income.
FOR MORE INFORMATION ABOUT HOW LIFE INSURANCE NOT ONLY CAN PROVIDE DEATH BENEFIT PROTECTION, BUT IT IS ALSO A STRATEGY TO HELP SUPPLEMENT RETIREMENT INCOME, CLICK ON THE LINK BELOW:
HOW CAN WE HELP?
Above is just a very brief summary of RETIREMENT PLANNING options, which, by the way, should not be construed as legal advice. If you would like to know what retirement plans and investment options might work better for your particular personal and financial situation, call our Local (Miami) Number (786) 353-2528; or our Toll Free Number (888) 950-8376, and one of our licensed agent will assist you through the process of ensuring your financial situation when you retire, will be what you have in mind.