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Retirement Planning | Principles of Financial Planning

Retirement Planning

When we arrive at retirement, it’s important to acknowledge that we are at a point in life that represents a regime change of sorts. Up until that point, we have spent a large part of our lives allowing other things and people to control our time. Simultaneously, we will have also spent a large part of our lives preparing to take more control of our time. How will we have done that? We accumulate the wealth needed to support the retirement lifestyle that we want. So, retirement is all about the preparation and fulfillment of taking more control over your time.

The reality is that not everyone will experience the same financial results—some will have an easier time producing the results they want, others will have a harder time. Typically, financial output (retirement, in this case) is reflective of the input (the planning and decisions that have taken place in pursuing goals). That being the case, we have designed our client experience to maximize the input.


Basics of Retirement Planning

  • Save – A prominent component of retirement planning basics is to save. Now, while it is wise to save in a standard savings account for general purposes, your retirement savings should be explicitly allocated to a retirement savings account to make the most out of your retirement savings funds. Retirement savings accounts allow your money to grow in a tax-efficient way.
  • Get-to-Know Your Needs – A key component in retirement planning is knowing and understanding your income needs when you retire. This is one reason why it is so important to plan. If you have everything mapped out ahead of time, it is easier to make sound financial decisions during retirement.
  • Maximize Contributions – If your employer offers a retirement account(s), take advantage of it. Maximize your contributions. Many employers will match a percentage of employee contributions to employer-sponsored retirement plans.
  • Apply Basic Principles – Learn about and apply basic investment principles. Your retirement financial planner is a valuable asset, but you should know what’s what when it comes to your retirement planning.
  • Get an IRA – Get an Individual Retirement Account (IRA). While a 401(k) or other employer-sponsored retirement savings account is good to have, it will not take care of all of your retirement needs on its own. It is essential to use multiple retirement savings outlets to ensure that your retirement plan will work for your needs when it comes time to retire.
  • Get a Retirement Planner – While it is important to know and understand your retirement plan, all the information available to pre-retirees and retirees can be a bit overwhelming. It is most essential to bring in an expert who will help you each step of the way, leading you to your best and most successful financial life in retirement.


Retirement Plans

There are many kinds of retirement plans and retirement accounts out there. From employer-sponsored retirement accounts such as a 401(k) to individually owned retirement accounts such as an IRA, things can get a bit tricky to navigate. Some basics about some of the most discussed plans:


  • 401(k) – An employer-sponsored retirement savings plan.
  • 403(b) – Non-profit and tax-exempt organizations generally qualify for these retirement savings plans that are similar to a 401 (k).
  • IRA – An Individual Retirement Account is for those who have an earned income. There are many kinds of IRAs.
  • Roth IRA – A Roth IRA is different than a traditional IRA. The key differences are in the tax features. Contributions to a Roth IRA are taxed, so they are considered tax-free when qualified withdrawals are made at retirement.
  • Traditional IRA – Contributions made to a traditional IRA are pre-tax. This means that taxes are due upon withdrawal.


Retirement Planner

A partner who can help you prepare for retirement is your most valuable asset, especially one who is certified and specializes in retirement planning. You should work with someone who focuses on completing an assessment of income needs, gathering necessary and pertinent information, and producing a comprehensive plan to fulfill your vision for retirement. Further, any advisor with whom you partner should have the proper perspective that any plan will take time and regular improvement to ensure that it is sound and will endure.

Partnering with an advisor for your retirement planning needs can help you avoid making mistakes that will prevent you from a fulfilling retirement. The best advisors have the experience, training, certifications, services, and passion to help individuals prepare for, and enjoy, retirement, and to identify the potential issues that could derail progress. We possess all of those attributes, but especially the passion we have for helping clients achieve success. We would love to help you do the same.