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Financial Planning Steps to Take as You Approach Retirement

Thu, 10 Nov 2022 14:19:19 GMT

Are you approaching retirement? For many, this decade will be an important time to start thinking about their financial future. According to the United States Census, by 2010, the oldest baby boomer hadn't reached 65 years of age. Since then, almost 10,000 boomers a day have passed that age threshold. By 2030, all boomers will be at least 65 years old. Here are three steps you can take now to help ensure a comfortable retirement.

1. Review Your Retirement Plan

Review your 401k retirement plan and other retirement savings. Make sure you're on track to reach your goals and consider consolidating accounts to simplify things. A 401k retirement plan is a great way to save for your golden years. Make sure you're contributing enough to get the full employer match if one is offered. This is free money that you don't want to miss out on.

You should also review your investment options and make sure your portfolio is diversified. This will help reduce your risk if one type of investment performs poorly. You can automate your contributions, so you don't have to worry about forgetting to save each month. Make sure to also increase your contributions as you get closer to retirement.

2. Consider Post-Retirement Income Sources

Start thinking about how you'll generate income in retirement. There are a few different options to consider, including working part-time, drawing down from investments, or using a combination of both. You may also want to consider downsizing your home or moving to a smaller town where the cost of living is lower. This can help reduce your expenses in retirement.

Drawing down from investments can be another option for generating income in retirement. This involves withdrawing money from your 401k retirement plan, IRA, or other investment accounts. However, you'll want to make sure you don't withdraw too much and run out of money.

3. Develop a Budget for Post-Retirement

Make a budget for retirement. Once you know how much income you'll have coming in, you can start planning how to best allocate your resources. Make sure to account for essential costs like housing, food, and healthcare. You'll also want to factor in leisure activities and travel.

Retirement can be a great time to finally take that dream vacation or indulge in a new hobby but it's important to make sure you can afford it. Start by creating a budget and sticking to it. Reach out to Tulsa Capital Investment Management LLC for financial planning assistance.

How You Can Benefit From Working With a Financial Planning Service

Tue, 28 Jun 2022 13:15:30 GMT

According to the U.S. Census Bureau, only about 32% of people invest in a 401k saving plan. A 401k saving plan is one of the best retirement saving options for Americans, but there is a lot of misinformation when it comes to financing. As a result, many people avoid thinking about it or go into the process misinformed. Working with a financial planning service can help clear up some confusion and ensure you are getting the best financing options for yourself. Below are some benefits you can expect from working with a financial planning service.

A Personalized Process

In addition to sorting out your finances, the financial planning service can help you to establish a plan for the future that is best suited to you. This may include setting up an IRA, paying debt, estate planning, and more. Your financial advisor will ask you questions and evaluate your situation accordingly to achieve your goals.

Assistance in Making Decisions

Just like any other part of your life, you must make decisions about money on your terms. It is also essential to gather the right advice and information. By doing this, you can avoid making risky decisions. Your financial advisor will help you make better decisions step-by-step. The financial planning service can assist you in making wise financial choices with a solid plan.

Financial Coaching

Your advisor will also work with you to help guide your choices and make sure that you stick with your financial plan. Hands-on coaching can assist you in prioritizing your spending and budgeting to help you spend less and save more. Saving money is typically a priority for most people. It is hard to do if you do not have a solid plan for spending and saving.

Help Establishing a Budget

Creating a budget for different aspects of your life is one of the most important things you must do. Establishing a budget can help you manage your financial life and future. It will give you a clear idea of what aspects of your finances need attention. The financial planning service you work with will help you in drawing up an accurate budget. They'll aid you in making better choices, setting financial goals, and implementing strategies to meet your goals.

Establishing a sound plan for your money can go a long way toward avoiding any debt traps. The financial plan helps you to prevent squandering the money you have. With the guidance of our financial planning service, you can improve your finances today and in the years ahead. If you require some help with your finances from a professional financial advisor, contact us today.

The Top 3 Reasons Why You Should Be Investing in a 401K Retirement Account

Wed, 27 Apr 2022 13:41:20 GMT

Retirement is a period of life that we have to plan for in our youth and middle age. A 401K retirement plan is the best resource to do that, but surprisingly only two-thirds of Americans are investing in them, according to the U.S. Census Bureau. Financial planning advisors are knowledgeable mediators between your finances and the national economy, helping you earn the most growth from your money by strategically investing it. Here are three key reasons why you should invest in a 401k.

It's Effortless

Employer onboarding programs will prompt you with a percentage that you'd like to remove from your paycheck and invest in a 401K account. Often employers will match your investments up to a certain percentage, say, 4%-15%. Each month your money will automatically enter the account and begin to grow. Over time, as more and more money is added to the pool, the rate of growth increases and sets you up with savings for retirement.

It Compensates When Social Security Isn't Enough

Everyone of age 59 and above is eligible to collect social security and the amount you can collect increases over time. But these monthly payments are not enough to cover the entire cost of living. They may, however, help with travel and vacations and eating out at restaurants. Financial planners anticipate this idea and help you to get your money growing into larger amounts by the time you need to withdraw it in retirement.

You Can Roll the Money Over

To avoid paying tax on your money, your financial planners may help you move your money to an IRA account when you change jobs. This can protect you from losing precious savings in the long run, as IRAs are accounts that you can withdraw without paying tax. The great thing is that your 401K advisor will be monitoring your accounts and their progress for you, so this can be a relatively passive investment strategy that doesn't require a lot of time or energy from you.

We all want to travel when we're older, and planning for retirement with a proper 401K account is the best way to achieve that. These accounts can help you avoid downsizing your home or selling your assets if you do not wish to in retirement. Whatever your age, it is never too early to start investing. The earlier you begin, the more growth you'll see over your lifetime! Set up a meeting with a financial planner at Paul F Muret Investments PLLC today!

Top Strategies to Maximize Your 401k

Wed, 23 Feb 2022 15:14:27 GMT

Growing and then protecting your 401k balance is critical for a comfortable retirement at a time when most people don't have a traditional pension. A 401k's expected rate of return, according to financial advisors, is typically between 8% and 10%. here are the strategies to maximize those.

Use a Roth 401k to Diversify

A rising number of firms are now offering a Roth 401k plan, which allows employees to invest after-tax monies and receive tax-free payouts in retirement. Young and low-income workers who expect to be in a higher tax bracket later in their careers benefit the most from a Roth 401k, but it can also bring tax diversification and flexibility to the portfolios of those closer to retirement.

Rollover With no Fees

When you move jobs, you usually have the option of leaving your 401k balance with your previous employer or rolling it over to an IRA or your new employer's 401k plan. If you decide to shift your money, instead of writing a check, ask your previous company to transfer the balance immediately to the new financial institution, which will help you avoid taxes and penalties.

Minimize Fees

Over the course of your career, high-fee investment options will drastically erode your 401k balance. Some 401k investments have quite high prices. You should choose the lowest-cost investment in your 401k plan that also matches your risk tolerance. If your 401k plan has a high cost, you might want to consider saving in an IRA instead of a 401k once you get the match.

Understand required Minimum Distributions

You must accept annual payments from your 401k after the age of 72. Failure to remove the correct amount results in a penalty of 50% of the amount that should have been withdrawn. To avoid the penalty, make sure you take the statutory minimum distribution each year in retirement.

Your retirement is special. Make sure you have more than the person who did not follow a strategy by using a Roth 401k, doing rollovers with no fees, minimizing fees everywhere, and understanding minimum distributions. When you strategize for your retirement, you will have a retirement that is noteworthy in terms of what you can do while others cannot.

5 Questions to Ask Before Choosing a Financial Planner

Tue, 11 Jan 2022 16:25:44 GMT

Financial planning can seem like a scary undertaking, especially when the economy is unstable. However, there is really no better time to make plans for your finances. According to Personal Capital, many American households put saving for retirement on the back burner as a result of fallout from the COVID-19 pandemic. Their survey results show only half of those surveyed are contributing to their 401k, and 49% of them ensure they get the maximum matching available from their employer. A financial planner can help you plan safely for your financial future. Consider asking a financial planner these five questions.

1. What Are My Costs?

When you work with a financial planner, knowing what fees you will pay is essential. Of course, you will have to pay the advisor, but you should ask if there are any other fees. While a 1% fee may not seem like a lot now, think about how much it is as your money grows.

2. How Do You Get Paid?

Financial planners have varying fees. The easiest and more affordable plan to consider is a fee-only advisor. This type of financial planner does not get a commission for selling products.

3. What Are Your Qualifications?

There could be a list of initials after a financial planner's name that you may not recognize. You can check the Financial Industry Regulatory Authority's database to get all the details about the credentials for any financial planner.

4. Are There Tax Implications?

With this question, you can determine what your estimated net return could be. But, first, you want to have a basic understanding of how much of your money you get to keep after fees and taxes.

5. What Is Your Investment Philosophy?

It is crucial that any financial planner you select has the same investment philosophy as you. Being on the same page will ensure that any financial planner you choose will keep you focused on your goals, especially when the market is down or may not be going in the direction you want.

If you are interested in getting your finances in order and planning for your retirement, contact a financial planner today to see how they can help you.

What to Expect from Your 401k Advisor

Thu, 04 Nov 2021 17:58:13 GMT

Here's a tragic fact that, according to Personal Capital, will leave many people in a rough position: only 32% of Americans are currently investing in a 401k, in spite of this being one of the best retirement options available. If you aren't and want to ensure you get help, you need a 401k advisor .

What a 401k Advisor Does

A 401k is a type of retirement plan that takes your money and invests it into different potential growth opportunities. A skilled advisor will make sure that your money gets placed in a way that makes sense for you and can provide many different benefits, including how they:

Assess Your Investment Possibilities – Your advisor will take the time to assess your investment possibilities, talk to you about your 401k, educate you on any things that you need to understand, and otherwise provide detailed information about your overall needs.

Create a Retirement Plan – A skilled advisor understands the different ways that they can create a retirement plan for you. They'll take the time to design a plan, produce investment performance plans, showcase better plan participation, create cost-saving strategies, and much more.

Provide High-Quality Design Consulting – Do you need a plan sponsor for your 401k? Are you aware of what a plan sponsor does? If not, an advisor can help. They will find a sponsor who can help you fund your 401k, including a variety of different outside sources and secondary investors.

Advise You When Investing is Wise – A great advisor is skilled at letting you know when the market is right for investment and when you should hold back. They'll make it clear when a 401k makes the most sense for you and times when it might be better to look elsewhere.

Produce an Investment Policy Statement – An investment policy statement or IPS helps to showcase all of your goals for your investment, showcases the plan sponsor, creates a sound understanding of what to expect in this process, and much more. It gives you a plan towards which you can work.

As you can see, a 401k advisor is important for people trying to make good retirement money before they get too old. If you take the time to understand these different factors, you can give yourself the best chance of avoiding long-term complications and keeping yourself financially secure.