Comprehensive retirement planning
Retirement planning analyzes the choices you make today so you can plan for your financial future. To make appropriate choices, you need to predict as best you can your future economic circumstances. You’ll also need to establish your post-retirement goals. After you’ve determined the income stream you’ll likely require in the future, you’ll be in a position to make wise choices now about income, saving, investments and employer-sponsored or other retirement plans.
Determine your retirement income needs
To determine your retirement income needs, you’ll want to evaluate your present circumstances – income, expenses, assets and debts. Next, you’ll need to think about your future circumstances. There are four main sources for your retirement income: Social Security, pensions or other retirement vehicles, your investment portfolio and savings. If you predict that your current income will not provide you with your desired retirement lifestyle, there are certain steps you can take now to help change your circumstances.
Saving for retirement
Learning how to save for retirement is imperative. Several retirement vehicles are available, including traditional and Roth IRAs, employer-sponsored retirement plans, nonqualified deferred compensation plans, stock plans and commercial annuities. Proper retirement planning requires an understanding of how these tools work.
Personal investment planning can also help you on the road toward your retirement goals. The sooner you start, the longer you’ll have to accumulate funds for retirement.
IRA distributions and other retirement plans
Effective retirement planning involves not only an awareness of the types of savings vehicles available, but also an understanding of how to take distributions from these options. In particular, you should be familiar with the income tax ramifications of distributions. You may be interested in knowing whether you can borrow money from your retirement plan, whether it is better to receive your retirement money in one lump sum or in monthly checks, and whether you can roll your retirement plan balance into an IRA.**
Executives and business owners
Additional retirement planning tools are often available for executives. Executives should realize that nonqualified plans and stock plans can be valuable tools for retirement planning. Business owners have special retirement planning concerns, and may want to know which retirement plans are best suited to their form of business.
Social Security and other government benefits
If you’re planning for retirement, you should also consider the Social Security income you'll receive in the future. You’ll also want to become familiar with ways to optimize your Social Security benefits and minimize their taxation.
Reviewing your Medicare and Medicaid options and knowing what Medicare does and does not cover are important considerations. You should also know other health care options available to you. A CFS Financial Advisor at Denali can discuss with you Medicaid eligibility requirements, the penalties for transferring assets inappropriately and strategies for protecting your assets.
Do you want to start planning for your retirement? Contact one of our CFS Financial Advisors today.
*Non-deposit investment products and services are offered through CUSO Financial Services, L.P. ("CFS"), a registered broker-dealer (Member FINRA/ SIPC) and SEC Registered Investment Advisor. Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. The credit union has contracted with CFS to make non-deposit investment products and services available to credit union members.
For specific tax advice, please consult a tax professional.
Financial Advisors are registered to conduct securities business and licensed to conduct insurance business in limited states. Response to, or contact with, residents of other states will be made only upon compliance with applicable licensing and registration requirements. The information in this website is for U.S. residents only and does not constitute an offer to sell, or a solicitation of an offer to purchase brokerage services to persons outside of the United States.
**Before deciding whether to retain assets in an employer sponsored plan or roll over to an IRA an investor should consider various factors including, but not limited to: investment options, fees and expenses, services, withdrawal penalties, protection from creditors and legal judgments, required minimum distributions and possession of employer stock.