Watch this short video to find out how we can help…
Watch this short video to find out how we can help…
Determining the right time to begin collecting Social Security can seem like aiming at a moving target. There are factors to consider such as health, marital status, and current income. There is no “right” time to begin collecting benefits, but there are considerations to collecting earlier or later.
The decision that will have the largest impact on your Social Security benefits is the age at which you begin collecting. This choice will dictate your annual Social Security income for the rest of your life. More than half of retirees begin to collect benefits early, or before full retirement age. By collecting early, beneficiaries will experience a reduction of benefits by 8% annually resulting in a total permanent reduction of benefits between 25-30%. If recipients begin collecting at their full retirement age, they will collect 100% of their benefits, which will be adjusted for expected longevity and inflation. The maximum benefit is gained by delaying Social Security benefit collection until age 70.
Types of Claims.
Choosing when and how to file for Social Security benefits can be confusing, and it is important to consider all factors when making your decision.
Call Asset Planning Group, LLC at 814-536-1040 to discuss your options, and learn more about how to maximize your benefits.
Whether changing career paths or advancing at a new company, there is a certain excitement around changing jobs. In the midst of all of the planning, however, there is one important detail that should not be overlooked: what to do with an existing 401(k).
To help decide which option is best for you, we can work together to consider the following factors:
Are you on pace to meet your financial and personal goals for retirement?
How long will your retirement savings need to last? How much may your retirement expenses be?
What are the pros and cons to preserving the tax-deferred status of your current retirement plan compared to taking a lump-sum distribution?
Is it more beneficial for you to do a direct rollover to a traditional IRA or a Roth IRA?
Are your retirement savings diversified enough to help deliver the returns you will need to enjoy the retirement you envision? Should you look into adding new investments to your portfolio to help maintain balance?
If you are currently starting a new job, or are preparing to make a change, please call Asset Planning Group,LLC at 5814-5636-1040 to schedule an appointment to review your options and help you decide what solution will best suit your needs.
The increasing cost of healthcare is a concern for workers of all ages. Each year healthcare becomes more expensive, meaning a larger portion of retirement savings will be spent on health related costs. A health savings account, commonly referred to as an HSA, is a tax-advantaged account that can be used to pay for medical expenses now or in retirement. The account is FDIC-insured, and can be invested for greater returns.
To be eligible to establish a health savings account, an individual must:
It is possible that an individual’s eligibility will change after opening an HSA, especially if he or she enrolls in a different healthcare plan. Regardless of eligibility, the account owner maintains control of the account and funds indefinitely. If the individual loses eligibility, he or she may not contribute to the HSA, but the account may be invested and continue to grow, or be withdrawn from if the need arises.
Other Important Facts.
The sooner the account is established and contributions made, the more opportunity the funds will have to grow over time. I encourage you to call Asset Planning Group, LLC at 814.536.1040 to discuss health savings accounts and how they can be an asset to your retirement savings strategy.
Half of eligible employees under age 34 do not contribute to their employer sponsored 401(k) plans. Of the employees who do contribute, 40% do not contribute enough to take advantage of the employer match program. Read on to discover why it is never too early to begin to save for retirement and how employer sponsored savings plans are a gift you can give to yourself.
While retirement may seem very far off for your children as they begin their careers, getting a jump on their savings may mean the difference between a comfortable retirement and a stressful one.
Rather than depending on a pension to help support themselves during retirement, most millennials will need to solely depend on their personal savings.
To help ensure your loved ones are on the right path for future success, call us today to schedule a family appointment.
While experts are divided on the existence of a retirement savings crisis in America, the average household headed by someone age 55-64 has saved around $100,000 for retirement. Is your household one of them? Call us to schedule an appointment to ensure you have the best saving strategy for your needs.
It’s never been more important to save for retirement. Baby boomers are set to strain the Social Security system in the years ahead. Studies repeatedly show that we fail to save enough on our own for retirement. The earlier you start and the more you save, the more comfortable your later years can be. Fortunately, it’s never been easier to save in tax-advantaged accounts such as 401(k) and similar plans.
These plans offer a flexible way to cut your current taxes while you accumulate savings. Recently Congress made changes to encourage participation and to make these plans more attractive. One change is that you could find yourself automatically enrolled in your company’s 401(k) plan as soon as you become eligible. You’ll have the chance to opt out, of course, but you should think twice before you do. Here are some reasons why.
You’ll also see more employers offering a Roth 401(k) option. This option trades off the upfront tax benefit in return for tax-free distributions when you retire.
So if you find yourself automatically enrolled, don’t rush to opt out. At least try it for a few months before deciding not to save.
In fact, you should consider increasing your contributions if you can afford it.
Please keep in mind that this tip is designed to be of help for you, but is not to be relied upon as advice. It is merely a reminder that there are many choices you have available to you, and that planning is the only way to find the right answers for your situation! As with any financial issues, make sure you get the right information before making a decision! If you have any questions, we’ll be glad to help you!
While the dawning of 2017 brings with it many significant changes, there are some that may impact you and your family’s financial standing more than others. Most notably, there are several new rules surrounding retirement accounts taking effect in 2017, including:
Please call our office at 814-536-1040 to learn more about these changes and what they might mean for you.
What’s the No. 1 goal for investors? Retirement, according to most polls. You may want to look at IRA’s (Individual Retirement Accounts) as an alternative to spending all your money, and even if you have a retirement savings plan at work! Let me explain.
If you don’t contribute to some retirement plan whether an IRA or another plan, how do you plan on paying for your time off down the road? Social Security? Your company’s traditional pension plan? (If they even have one any more. Many companies and organizations dumped those plans. Do you still have one?) See, for nearly everyone, those retirement income sources probably won’t give you near enough retirement income. Social Security pension plans were really not intended to be your only sources of cash in retirement. Plus, as we’ve discussed before, Social Security has mind-boggling funding problems, depending on your age and whom you work for. So…if you want a realistic chance to enjoy retirement…you’ll need to add in a bunch of personal savings! But where do you put these funds?
Well, if you’re in an employer-sponsored plan (e.g., 401(k), 403(b), 457) instead of an IRA, this type of plan might be the right choice if your company or organization matches your contributions to the plan. However, if that’s not the case, you might be better off in a Roth IRA (if you’re eligible), at least for a portion of your savings. (We can help you figure this out!) Generally, a Roth IRA is more flexible and might provide more after-tax retirement income than a company sponsored plan.
See, your adjusted growth income (AGI), determines whether you’re eligible for a deductible traditional IRA (which means lower taxes now and until you retire) or a Roth IRA (which means no deduction, but you never pay taxes on the investments in the account).
Finally, IRAs can be treated differently than other accounts. For example, assets parents hold in a regular account can reduce the financial aid award their children receive for college. However, most financial aid formulas ignore retirement savings. Also, IRA assets may be shielded from creditors. And IRAs also have estate-planning benefits, especially Roth IRAs.
As usual, with any financial issue like this, we’ll be glad to work with you on determining if any of these strategies will work for you and your family! Please keep in mind that this tip is designed to be of help for you, but is not to be relied upon as advice. It is merely a reminder that there are many choices you have available to you, and that planning is the only way to find the right answers for your situation! As with any financial issues, make sure you get the right information before making a decision! If you have any questions, we’ll be glad to help you!