Retirement planning is one of the most important aspects of your financial plan, if you don’t get this right you may run out of money at an age you can least afford it.
I am always asked the question should I contribute to my 401k or retirement plan, and my standard answer is you should contribute, at a minimum the portion your employer will match. Beyond that amount it would make sense to review your overall financial situation to make sure all of your bases are covered before you make that decision.
If you are self employed, a business owner, a partner in a business, or in a small group of highly paid professionals you may have many options beyond, a SEP or a small business 401k. A few examples would be a deferred compensation plan, or perhaps a cash balance plan to name a few. These plans may allow upwards of $250,000 or more of tax deduction and may help you meet limits as established by section 199 A of the new tax code. There are many calculations used to determine the limits on these plans but certainly worth the effort. Bush Capital Management will introduce you to local and national third party administrators who will assist in the calculations to determine contribution limits. Bush Capital Management provides the asset management to help you reach your retirement plan requirements and goals.
Weather you are eligible for a company plan or not, you will still want to supplement your savings to make sure you have funds available to last a lifetime. To determine the type of savings and amount you will need can be a complex question and we strongly suggest letting Bush Capital Management help you to determine the options available to you. Retirement and investment planning needs to be done in a comprehensive and cohesive way, taking into account your entire financial situation.
During the downturn of last great recession many people that were planning to retire within a few years had to wait for a long time because suddenly their retirement plan was worth half of the peak value, because of poor asset allocation. Most people are unaware of the relationship within asset classes, and they think they are diversified when they may not be at all. Asset class plays a huge role in diversification, some asset classes react negatively to react to a rise in interest rate others react positively, as the fed continues to unwind their balance sheet from the billions of dollars spent on mortgages and other assets they accumulated during the last 10 years it will have a huge impact on interest rates, and the economy in general. The question is are you prepared for this event, it’s worth a call to let us help you with your financial options.
I have so many people tell me they manage their own retirement money and we are doing just fine, we don’t need any help. Here is the truth of the matter, they probably are doing OK until a huge emergency arises such as alzheimers, a prolonged battle with cancer or any other prolonged medical issue that may cost several hundred thousand dollars or more for care, the care you need may or may not be covered by your medical coverage, suddenly an issue such as how do you have your assets titled, or do you have the proper type of trust established may make the difference between success or financial ruin. Many of the trust we have our attorneys review are either out dated because of tax law changes, assets were never moved into the name of the trust or just do not meet the clients needs anymore.
As you can see retirement planning is not just about which mutual fund you need to own, it’s far more complex and without proper planning you may not be as well prepared as you think.
Isn’t it worth the time to pick up the phone and schedule an appointment with us for a check up just to make sure you are doing all that you can.