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How people get as much as 88% more from Social Security!
Many people may be unaware of the impact various decisions can have on their ultimate social security benefit amount. Timing of election, work income, taxes, spousal benefits, etc., must all be considered in effective social security benefit planning.
Regarding the timing of elections, for example, according to a recent study covered by CNBC, someone who retires and begins claiming Social Security at age 70 would receive a benefit that’s 76 percent higher than the one he or she would receive at age 62. The CNBC piece points out that if you factor in late-career earnings replacing a zero-income year, the increase can become as much as 88 percent for women and 82 percent for men.
At Frye Retirement we are familiar with the complicated algorithms, and can crunch the numbers and guide you with any of your social security planning questions. For the full CNBC piece click here: how to get 88% more from social security.
There’s still time for 2016 tax savings…but it is running out!!
With proper 401(k) retirement plan design techniques, clients can reduce taxes, improve owner benefits, and lower employee costs:
$53,000 individual deduction limits for 401(k)/profit sharing plans. If 50 or older, up to $59,000 can be funded into 401(k).
Contributions of up to $300,000 for small business owners in Defined Benefit plans (depends on age and service).
IRS tax credit of $500 per year for the first 3 years of the plan for installation and administrative costs if your client has employees.
Uni-K plan to maximize deductions for self-employed, owner-only or owner-spouse business owners with low W-2 wages (i.e. deduct $28,000 with only $40,000 in wages; if 50 or older, deduction increases to $34,000.
DON’T DELAY: Plans must be adopted by December 31, 2016 (but plans don’t have to be funded until 2017).
Austin Frye Interviewed by CNBC About How Women Save vs. Men
“Women Save More Than Men For Retirement”
By: Sarah O’Brien
Excerpt from article:
“Certified financial planner Austin Frye has a client in her early 30s who, working at the first job of her career, is already discussing the details of her retirement plan.
“Women are more security-oriented and better savers,” said Frye, president and founder of Frye Financial Center.
He said that with married couples, he discourages having meetings with just the husband, because of the female habit of keeping expectations and risk level at rational levels.”
Read the full article.
Taxes Matter: What You Need to Know
Taxes Matter: What You Need to Know
What you need to know about IRA rollovers
When you change jobs, it may be tempting to cash out your 401(k) plan. But doing this could derail your retirement savings just when it’s important to keep your money growing tax-deferred. Here are a few items to keep in mind.
It may be better to stay put
If you’ve been happy with your plan and your employer permits it, it may be just fine to keep your 401(k) balance intact where it is. Plus, your 401(k) may offer you access to loans in emergencies- a feature not available in an IRA.
Don’t cash out
Unless you absolutely need the money to live on, most experts advise against cashing out of a 401(k). If you’re under 591h, you will be subject to a 10% penalty and income taxes on the withdrawal. It also can cause you to lose the discipline that comes from investing each pay period.
Roll with it
A new employer’s plan may offer access to investments not offered in your current plan. Tracking expenses is important, as they often create the biggest drag on your investment returns after taxes. Always read the fine print-annual fees and expenses could be higher than those in your current plan.
Broaden your horizons
You may be able to access even more investment options by rolling your 401(k) balance into an IRA. By moving your funds into an IRA brokerage account, for example, you may be able to invest in stocks, bonds, mutual funds and exchange traded funds (ETFs) that are better suited to your investment goals. However, be sure to compare the fees in your 401(k) versus the fees in the proposed IRA before you make the decision to rollover. Remember that consulting with a financial advisor may help you determine your best course of action.
Disclosure: This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. LPL Financial and its advisors are providing educational services only and are not able to provide participants with investment advice specific to their particular needs. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this educational material.
Kmotion, Inc., 412 Beavercreek Road, Suite 611, Oregon City, OR 97045; www.kmotion.com
Chart Shows Why Portfolios Must Be Well Diversified…
Chart Shows Why Portfolios Must Be Well Diversified…
Our Favorite Investment Chart Updated
Whatever you call it, Quilt Chart, Jelly Bean Chart, Periodic Table Chart, etc., our favorite chart (now updated through 2015) clearly highlights why you can’t chase the top performing investments or sectors. It shows how the strongest investment performers change from year to year, underlining the importance of sticking with a well diversified portfolio allocation.
Disciplined Diversification® can be an effective strategy for successful long term investing.
Plan Sponsors Ask…
Q: What are some key topics to address when communicating to employees about preparing for a more successful retirement?
A: We’re glad you asked. Aon Hewitt answered this question concisely and succinctly in a fun infographic titled “Top Questions to Ask When Preparing Employees for a Financially Successful Retirement.” It illustrates four specific and critical questions to ask, including discussions on how much employees need to retire and maintain their current standard of living (11 times their final pay, on average), how much they should be setting aside for retirement (17% of pay) and more.
Click here to check out the complete infographic
