We would love to hear from you. Click on the ‘Contact Us’ link to the right and choose your favorite way to reach-out!

wscdsdc

media/speaking contact

Jamie Johnson

business contact

Victoria Peterson

Contact Us

855.ask.wink

Close [x]
pattern

Industry News

Categories

  • Industry Articles (21,155)
  • Industry Conferences (2)
  • Industry Job Openings (35)
  • Moore on the Market (414)
  • Negative Media (144)
  • Positive Media (73)
  • Sheryl's Articles (800)
  • Wink's Articles (353)
  • Wink's Inside Story (274)
  • Wink's Press Releases (123)
  • Blog Archives

  • March 2024
  • February 2024
  • January 2024
  • December 2023
  • November 2023
  • October 2023
  • September 2023
  • August 2023
  • July 2023
  • June 2023
  • May 2023
  • April 2023
  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • November 2010
  • October 2010
  • September 2010
  • August 2010
  • July 2010
  • June 2010
  • May 2010
  • April 2010
  • March 2010
  • February 2010
  • January 2010
  • December 2009
  • November 2009
  • October 2009
  • August 2009
  • June 2009
  • May 2009
  • April 2009
  • March 2009
  • November 2008
  • September 2008
  • May 2008
  • February 2008
  • August 2006
  • Reaching for Retirement

    April 29, 2013 by Wade Carter

    A few days ago I had a prospective client, Richard, come in to my office to  discuss his retirement plans. He had no idea what he needed to do to make his  retirement a reality. Almost everyone out there dreams about the last years of  their life being relaxing and carefree but don’t really know how to plan for  it.  Richard wanted to retire in about a year but needed help figuring out  a plan that would let him retire at that time.  We met two different times  and came up with a plan for his situation. This article outlines the things you  need to think about if you are like Richard and are ready to retire but need  some guidance.

    There is a lot of planning and saving that needs to happen before you can  have that ideal retirement.

    There are so many people out there that think they’ve worked hard for their  retirement and that Social Security will give them the retirement of their  dreams. Actually, many experts suggest that you’ll need at least 70% to 90% of  your preretirement income to maintain the standard of living you’ve been  accustomed to. Social Security isn’t as “secure” as many people think!

    You need a financial plan that includes all of your bills, debts, etc., as  well as sources of income and everything else related to your financial life.  The first step to retirement planning is estimating your retirement income  needs. You can use your current expenses as a starting point, remembering that  your expenses may change by the time you retire.

    Healthcare costs will go up and it’s inevitable that your health will decline  as you age. Most importantly, you must remember to take inflation into account  when planning. The average annual rate of inflation over the last 20 years is  3%, according to the US Department of Labor.

    A financial plan isn’t just based on expenses. You will also need to try to  determine your life expectancy and when you want to retire. You can use the  government statistics of life insurance tables to get a realistic estimate.  These estimates are based on age, gender, race, health lifestyle, family  history, etc.  I always ask the question during a consultation, “Which do  you fear most, dying or outliving you income?” Thirty nine percent will say  dying and 61% say outliving their income!

    The final portion of a financial plan includes your income, as well as  savings or investment accounts. You should speak with a financial professional  who can help evaluate your investments or savings account to see if they are  giving you the best returns possible. Many people I’ve met have several accounts  but they just aren’t the right matches for their goals.

    Let’s leave Social Security out of the picture. If you have a pension or a  401(k), you have more options, right? You’ve saved more money, so you should be  able to retire earlier. Actually if you’re expecting to receive pension  payments, early retirement could have a negative effect on that plan. The  greatest growth of benefits occurs during your final years of employment.  Retiring early could reduce your monthly benefits and, if you’re banking on  using your 401(k) savings before you turn 59 1/2, you’ll usually pay a 10%  penalty in addition to income tax.  You won’t be eligible for Medicare  until you turn 65, so you will need to factor in the cost of health insurance  until your Medicare kicks in and postponing retirement, as an option, lets you  add to your savings.

    Let’s look at employer sponsored retirement plans. These accounts, like a  401(k), are extremely powerful tools and probably the best way for you to save  for retirement. Your contributions come out of your paycheck as pretax  contributions (reducing your current taxable income) and any investment earnings  grow tax deferred until withdrawn. If someone plans to retire before age 59 1/2,  there is a 10% penalty charge. A 401(k) or any other employer sponsored plan is  a great savings tool for retirement, possibly the best.  Many people leave  behind a 401(k) they had at a previous employer and this is can be a nice source  of retirement savings. Just because you left your old job, it doesn’t mean the  401(k) was canceled.

    You have options! You could roll the funds into your new 401(k), if your new  employer plan has a lot of allocation choices, this could be a great option. Or,  if the company is small and doesn’t have a lot of allocation options, you could  roll the funds into an IRA. An IRA also features tax deferred growth  earnings.

    Depending on your situation, a great option for anyone receiving an  inheritance, especially age 50-80, is an annuity. Annuities are a great  successful way to provide income during retirement. Based on the type of  annuity, some or all of the funds can be passed to your children or even  grandchildren as a legacy.

    Annuities are generally funded with after-tax dollars and they come in three  different flavors: Fixed, variable and fixed index. A fixed annuity sounds like  its name; it pays a fixed set rate of interest on the money placed in the  annuity. This rate could change periodically: For example, some insurers will  pay a much higher rate of interest, say (6%) for an initial period, and then pay  no less than a lower rate (3%) after the first year. Fixed annuities are  conservative investments for individuals who prefer fixed rates of return  without any surprises.

    Variable Annuities allow you to invest money in several sub accounts; these  subaccounts will invest in stocks, bonds, and money market accounts, etc. The  amount of earning that will be credited to your annuity account will depend on  the performance of the underlying sub accounts.  You will assume some risk,  as some years you may do well and others you might lose money.

    A popular alternative is a Fixed Index Annuity. FIA’s are a hybrid between a  fixed and a variable annuity, without the risk. When you purchase a fixed index  annuity, the issuer agrees to pay a return on your account that is tied to the  stock market. However, the issuer guarantees to pay you no less than a  guaranteed return in a given period, if the return on the stock market falls  below the minimum percentage. Simply put, if the market does well, you can earn  above average returns on your annuity; if the market falls in value, your  annuity will credit you the previously agreed guaranteed rate of return without  any losses to your principle or interest earned.

    The good news is that retirement planning is easier than it used to be,  thanks to many tools and resources.  While I only skimmed the surface,  there are many options available for anyone planning to retire or those already  retired. I encourage you to speak with a financial professional and establish a  plan.

     

    Originally Posted at FOXBusiness on April 26, 2013 by Wade Carter.

    Categories: Positive Media
    currency