For any saver who’s ever wondered “Am I doing this right?”, we will give you the guidance and confidence to answer “Yes.”
Too many savers are operating under an old set of rules – rules that were created and tested decades ago for market conditions that no longer exist today. And while most of us would never call someone on a rotary phone, or drive a car without airbags, we still save with outdated strategies. The New Rules of Retirement Saving is your guide to the risks you face as a saver today . . . and the new rules you can use to overcome them. Now that you’re getting closer to that retirement date and have saved the outdated way, is it too late? No!
Let me ask you a question, Do you think taxes will be higher, lower or the same when you retire?
Most people answer, higher – and most people save in a 401k, 403b, 457, TSP or traditional IRA and are trading a tax savings now, for higher taxes in the future! Does this make any sense? Would you rather pay $1000 now or $5000 in the future? The choice is yours – make the correct decision.
The New Rules for Retirement Saving
There are three risks each one faces for preparing for life after retirement. In planning for those three risks
you’ll need knowledge, planning and action.
Those three risks are:
Structural Risk – Is the risk you have because of the WAY you save. This is about what tools and what kind of help you have available.
Do you have a 401k plan and does your employer match your contributions? Or do you have a non-matching
plan, or maybe a 403b, 457 or if you work for the government a TSP. Will that plan be around, will your
employer stop matching?
Another is Social Security – will that be around when you retire.
And finally, your personal savings – IRA’s are the most popular.
The sum of what I’m saying is – It’s time to realize that your retirement savings may be in your hands alone.
Market Risk – This risk come with HOW you save and WHO helps you save. Plans such as 401k’s, IRA’s, 403b’s. TSP’s and ROTH IRA’s. All these accounts are probably linked to the stock market. The market is the single biggest determinant on whether or not we grow our retirement funds and most of us don’t know how to manage that growth. How much of your retirement did you lose in the 2002 – 2009 decade and again in 2020 because of the Coronavirus.
Tax Risk – This is probably the most least understood risk you face today saving. Remember, you must account for taxes when you save for retirement.
We live under two tax structures – Tax Deferred and Tax Free.
Tax Deferred – This would be your 401k, 403b, 457, TSP and Traditional IRA. For a tax break today, you are postponing your taxes to when you retire.
Let me ask you a question, do you think taxes are going to be higher, lower or the same when you retire? If you answered higher (most people do) then why would you postpone your taxes and pay more at retirement?
Tax Free – Your dollars would be invested after tax so all your money would be tax free at retirement. So, would it make any difference if taxes were higher? You get to keep more of your money because you’re not paying taxes on it.
OK, but what do you do?
We can show you how to save for retirement, retire with a tax-free income, plan for emergencies and critical, chronic and terminal illness, plan a legacy and have your retirement plan be self-completing if you die prematurely – but you need to contact us first, so we can help you.