Most of us know there are two types of IRAs: traditional and Roth. You may even know that there are tax differences between the two, and it’s possible you have both of these savings vehicles in your retirement arsenal. But what you may not know is that your traditional IRA can be converted to a Roth IRA. If you’re drawn to the benefits of a Roth and think that it would be more favorable for your financial situation, we’ve created a webinar just for you!
401(k)s are great. You fill out a form, check a few boxes, pick an investment such as a target-date fund, and you immediately start saving for retirement sometimes with an employer match too! What could be better? While it may be easy to sign up for a retirement plan through your employer, some planning tips could make your 401(k) work harder for you.
If there’s anything positive we can say about 2020, it likely made us realize what’s most important in life: family, health, and if you’re a healthcare professional, maybe a strong sense of purpose. And with the major hit employment took, it also showed how money, although maybe not the most important part of life, affects every aspect. It can give you the security and stability that positively impacts the things that matter most, but because of its far-reaching impact, managing money often leads to stress and worry. That’s why an advisor plays one of the most prominent roles in a person’s life, forming a long-lasting relationship and providing trusted counsel.
As a financial advisor, one of the most common questions I get is, How can I lower my taxes? You have probably asked that question yourself more than once. Most people are already familiar with saving in a tax-advantaged retirement account. However, those accounts have contribution limits that aren’t high enough for higher-income earners preparing for retirement. Another retirement option is to invest in a taxable brokerage count, but those come with an annual tax bill. What many people don’t realize is that life insurance can be used as a tax-deferred investment vehicle.
There are many options available to us for saving for retirement—both plans available through our workplace and IRAs we can open on our own. The various plans have their own pros and cons. If you’re concerned about paying taxes in retirement, find out how Roth IRAs and Roth 401(k)s can provide tax benefits today while your money grows and provide a tax-free source of income in your retirement years.
If you’re one of the fortunate workers who will receive a pension in retirement, it’s important to know there are options in how you receive the money. Learn the different ways you can take pension payments throughout your retirement, as well as the possible benefits of opting for a lump-sum payment.
In planning for retirement, you have to ensure your nest egg can help you replace your paycheck. However, you also likely face higher healthcare costs as you age. And many of us will need some type of long-term care as we age, especially as many of us live into our 80s, 90s, and beyond. Long-term care, which can range from using the services of a home health aide to living in a nursing home, can be very expensive, and usually isn’t covered by Medicare.
If your employer offers both Roth and traditional 401(k) plans, you have an important decision to make. With a traditional 401(k), you get to fund your account with pre-taxed dollars but have to pay taxes on future withdrawals. A Roth 401(k) works in the opposite sense. You pay taxes up front but get to withdraw tax-free in retirement.
You are approaching the phase of life you’ve been working toward and preparing for, but are you ready? That’s right, we are talking about retirement. In order to make the transition smooth, now is the time to verify you have everything in place so you can enjoy your investments over the coming years. If you find you aren’t quite where you want to be with your finances, you still have a few years to make bold moves toward your dream retirement.
You don’t have to look far for cookie-cutter financial solutions. But as a professional in the pharmaceutical and healthcare industries, you face unique challenges and opportunities that require a customized touch. That’s where we come in. At Gibbons Financial Group, we have made it our mission to provide financial planning and investment advice that simplifies your complex financial decisions so you can fully embrace your dream retirement.
On the whole, Americans are woefully unprepared for retirement. While wages are not increasing as quickly as the cost of living, many savers are unable to put away as much as they’d like and potentially face a lower standard of living in retirement. Policy-makers and employers have recognized this savings gap and have now taken the first step to help retirees manage their money as well as allow for pre-retirees to plan ahead.
Like many others, I stumbled into my career by chance. An opportunity arose, my interest was piqued, and dipping my toes into something new turned into a long and fulfilling career. This path may have been indirect, but I like to think that while this career initially chose me, I, in turn, chose it, and as my passion and knowledge grew, I committed to it.
