Retirement income planning
Retirement is a time to enjoy and spend however you choose, which is why they call it the “golden years.” The freedom to control your time in retirement takes careful financial planning. Setting aside money today by starting a retirement fund to see that you have enough for the years down the road is not just an option anymore – it’s mandatory. There are several retirement plans that you should consider such as Traditional IRAs, Roth IRAs, 401(k), and other employer-sponsored benefit plans.
If you’re looking to start saving money for retirement today, Optimal Wealth Services is here to talk to you about your options and assist you in choosing the right retirement plan for your specific needs. If you already have a retirement plan, including an IRA or a 401(k), we can review it with you and see if we can improve it!
Furthermore, tax considerations are important in every aspect of life. In fact, understanding the implications of taxes is so crucial to financial & retirement planning that we devoted a separate tab to it! Please refer to the "Forward Tax Planning" tab for additional information
Rollover and Conversion Strategies
A Roth conversion refers to moving of assets from a tax-deductible individual retirement account (such as a Traditional IRA or SEP IRA) to a non-deductible Roth IRA which creates a taxable event. What does it mean? Traditional IRAs are grown with pre-tax income and taxed when funds are withdrawn. Roth IRAs are contributed to with after-tax income and are tax-free at withdrawal, which can be advantageous for individuals who believe that the deferred tax liability in their traditional IRA will grow as retirement approaches.
A conversion may be accomplished by:
a rollover of assets directly between the trustees of the traditional and Roth IRAs, or
by the IRA owner distributing the assets from the traditional, SEP, or SIMPLE IRA and rolling over the amount to the Roth IRA within 60 days of receiving the distributed amount.
At Optimal Wealth Services, we’ll review your accounts with you and, if the Roth Conversion is right for you, we’ll assist you with the entire process. Please note that the conversion needs to be done with due diligence as there may be major tax implications if not done appropriately. In fact, understanding the implications of taxes is so crucial to financial & retirement planning that we devoted a separate tab to it! Please refer to the "Forward Tax Planning" tab for additional information.
EXPENSES ANALYSIS
Expenses are usually where people get into trouble when it comes to money management. Why? When creating a budget, we see income as a vital component. However, if we don’t compare it to our expenses, income loses its meaning. We have to see what the balance between the two is in order to know how we’re really doing in life financially.
At Optimal Wealth Services, we’ll review and analyze your monthly budget with you, assess your spending habits, and determine in which areas of life you may be able to save and/or invest your money!
Social Security Maximization
Social Security is the primary source of income for many retirees. The benefits are guaranteed for life and increase with inflation which is why it is important to maximize them. There are several steps you can take that will affect the amount of your monthly benefits. For example, delaying your Social Security application may potentially increase your monthly benefit by 8% per year!
At Optimal Wealth Services, we will work alongside you to devise a plan that will maximize your Social Security Income and minimize the effects of taxation on your benefits to provide you with the retirement lifestyle that you want.