Wealth Management Retirement Planning

Why People Hire Us: Retirement Planning

Successful retirement planning is not just about accumulating assets, it’s also about how to properly spend your assets.  You need to minimize the guesswork involved in the most important retirement question: How am I doing?

Interactive’s retirement planning services guide you through the accumulation, preservation and ultimately spending of your wealth. We help you organize the otherwise contrasting components involved: 

  • Tax-smart investing (taxable and tax-sheltered account management)
  • Sources of retirement income (retirement plans, pension plans, Social Security and more)
  • Spending plan based on your desired lifestyle as well as market conditions
  • Estate planning needs

Interactive Wealth Advisors are committed to helping you reach financial freedom.  If you need advice or help planning your retirement, please Contact Us.

What Exactly is Retirement Planning?

Retirement planning involves analyzing your options today, in order to secure your financial future tomorrow.  At Interactive Wealth Advisors, you and your advisor will formulate a plan built around your current reality and your post-retirement goals.  Knowing how much of an income stream you’ll probably require in the future will enable you to make smart choices about how to leverage your income, savings, investments, and employer-sponsored or other retirement plans.

Each retirement plan is unique as different Portland neighborhoods.  But no matter who you are, we’ll help you gain control over the big retirement traps like Social Security, post-retirement health care insurance coverage and taxes.  For some people, retirement may be an eagerly anticipated event, an opportunity to enjoy so many things that you couldn’t do while working like travel, hobbies, and more family time.  For other people, even the word “retirement” may conjure up feelings of fear or dread. Newspaper stories abound about the collapse of Social Security adding anxiety to already scary topic.  However, whether you think you’re financially comfortable or not totally sure, retirement planning can help you take control of your own future.

How Much Retirement Income Do You Need?

First, you’ll want to evaluate your current reality like your income, expenses, assets, and debts. Next, you’ll need to think about what you want your future to look like and how much that lifestyle could potentially cost.  The four main sources for your retirement income are Social Security, pensions, your investment portfolio, and savings.  Our analysis will determine if you’re on track or if we need to take course correcting steps today to get you back on track.

You’ll not only want to think about your future sources of income, but also about where you’ll live.  Are you going to stay in Portland or move out of state?  Will you continue to live in your current home or will you move to a condominium or retirement community?  And if your employer ever offers an early retirement package, you’ll need to know how to evaluate that when the time comes.

Saving for Retirement?

Learning how to save for retirement is imperative.  There are a number of retirement vehicles available, including traditional and Roth IRAs, employer-sponsored retirement plans, nonqualified deferred compensation plans and stock plans.  Proper retirement planning requires understanding what’s available to you and which tools will help you reach your goals.  For example, should you use a Roth 401k or the traditional 401k offered by your employer?  As tax laws change, you’ll need to reevaluate your strategy to make sure it’s optimized for today and tomorrow.

Distributions from IRAs and Other Retirement Plans

Effective retirement planning involves not only an awareness of the types of savings vehicles available, but also an understanding of taking distributions from these vehicles. We’ll walk you through the income tax ramifications of distributions and make sure you avoid any tax penalties.  Should you borrow money from your retirement plan?  Is it better to receive your retirement money in one lump sum or in monthly checks?  Should you roll your retirement plan balance into an IRA?  What are the advantages and disadvantages of each?

IRAs and Other Retirement Plans

In addition, you may be concerned about naming one or more beneficiaries for your IRA or employer-sponsored retirement plan. What are the tax implications? What about required minimum distributions from the plan after you reach age 70½?

Executive and Business Owner Strategies

A number of additional retirement planning tools are often available for executives, such as nonqualified deferred compensation plans offered by employers to their key employees.  If you’re an executive, you should realize that nonqualified plans and stock plans can be valuable tools for retirement planning.  You should understand the mechanics of the special benefits afforded by your employer, including the tax implications for you.

If you are a business owner, on the other hand, you have some special retirement planning concerns of your own.  In particular, you may want to plan for the succession of your business to family members or to others.  You may also want to know which retirement plans are best suited to your form of business.  Should you set up a defined benefit plan?  Should I sell my business?  If so, how do I maximize its value?

Social Security Strategies and Retirement Planning

If you’re planning for retirement, you also want to factor in your future Social Security income.  What are your estimated Social Security benefits?  Is that number reasonable or should you assume you’ll get less?  Is your Social Security income record accurate and complete?  If not, how do you correct it?

Interactive Wealth Advisors will also help you become familiar with ways to optimize your Social Security benefits and minimize their taxation. The timing of your receipt of benefits can be important, as can the impact of post-retirement employment.  Other governmental programs should also be considered when planning for retirement.

Social Security Strategies and Retirement Planning

In particular, you should review the topics of Medicare. You should know what Medicare does and does not cover and what other health care options are available to you.  How expensive are these governmental and supplemental health programs?  What are the eligibility requirements? Medicaid planning can be particularly important for people of modest means. You should know the Medicaid eligibility requirements, the penalties for transferring assets inappropriately, and the various strategies available for protecting assets.  In addition, you should become familiar with the specific methods of protecting your personal residence and the extent to which your state can impose liens on your property and pursue recovery remedies after your death.

If you are planning for your post-retirement years, you should also gain some familiarity with long-term care insurance, nursing homes, retirement communities, assisted living, and other housing options for elders.

Learn How Our Retirement Planning Could Help You with a complimentary consultation.

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