By David L. Cumming
In the years approaching retirement, you should be thinking about whether your current plan puts you in the best position to achieve the lifestyle you envision for your golden years. For many people, the years leading into retirement are a time of not only eager anticipation, but also serious contemplation about what must be done to achieve their goals.
There are five key factors to consider when planning your retirement strategy.
BY Rob Snell
If you’re a dad, you may well be pleased to unwrap some tools as Father’s Day gifts. Of course, it might be a stereotype that all men are handy at repairs; women certainly can be every bit as good when it comes to building and fixing things.
In fact, the construction process is valuable for anyone to learn – and the same skills that go in to creating and mending physical objects also can be applied to financial projects – such as working toward a comfortable retirement.
Here are a few of those skills:
Diagnosing the challenge.
Two local small business were recognized during National Small Business Week in May at the U.S. Small Business Administration’s 21st Annual Small Business Excellence Awards luncheon in Albany.
Small businesses are selected for the Excellence Awards based on their company’s longevity, innovation, sales growth, increased employment, ability to overcome adversity or community contributions.
By David L. Cumming
From record-breaking stock market returns to falling unemployment, the U.S. has no shortage of positive economic indicators, and the majority of investors say they feel confident about achieving both their short- and long-term goals, according to the latest Morgan Stanley Investor Pulse Poll, which surveyed more than 1,200 investors age 25 to 75 with over $100,000 in assets.
About one in four (29 percent)—or 36 million—U.S. households fall into this category.
Mostly sunny, with some clouds
By Jill Nagy
Investment strategies in today’s complex economic environment can cause small business people and individuals to pause.
“Every business owner has different issues to deal with and there is no one answer for everybody,” said Kevin Hedley, a principal in Hedley & Co. PLLC, Certified Public Accountants in Clifton Park.
In looking at investment strategies, near the top of his list this year is reviewing the structure of the business in view of recent changes in the tax code, he said.
By Rob Snell
Summer is here – and so is vacation season. Americans spend a lot on their summer getaways—more than $100 billion in 2017 alone, as reported in Travel and Leisure magazine.
When you hit the road, you will enjoy getting away from your regular tasks, but there’s one part of your life that should never take a break—your investments.
To keep your investments working consistently and efficiently for you, consider these suggestions:
As Congress and the White House debate tax plans, there have been much discussed changes to the traditional 401(k) plan. The proposed plan to adjust the maximum limit for contributions has been tabled but we still have a long way to go before we have a tax plan in place.
That does lead to the questions—What are the limits for various retirement plans and what are some options for a small business owner to save for retirement?
Depending on your immediate and long term goals there are plenty of options. There are defined benefit plans, Defined contribution plans and other retirement savings plans such as SEPS, SIMPLES and IRAs to name a few. All of these plans allow a deduction from current income if a contribution is made according the respective plan terms. The differences between them include the amount of contribution and the costs of administering each plan
Benefits are paid from these plans in most cases at retirement, death, disability, or separation from service. Distributions from plans that do not fall into one of the allowed categories are also subject to penalty ranging from 10 percent to 25 percent.
Under a defined benefit plan, an employer makes annual contributions to the plan to provide each participant with a set benefit at retirement. Contributions to the plan are actuarially determined, and the plan can be integrated with social security. An integrated plan reduces the contribution for the lowest-paid employees and still allows for a significant contribution on behalf of the owner and key executives. Benefits under the plan are fixed using a definite formula. Typically, the formula expresses the benefits in one of the following ways:
By Maureen Werther
Between now and the end of the year, financial planners, advisors and CPAs will be busy working with clients to ensure their future financial security and minimize their tax liabilities for the coming year.
However, this year is fraught with more uncertainty than any other time in recent memory, some advisors say.
With tax reform still being negotiated in Washington, D.C., financial professionals will be waiting to see what the coming months will mean for the year ahead.
According to global financial giant, Wolters-Kluwer, year-end strategies will become clearer as the legislation moves forward. For the time being, they advise flexibility and preparedness. In other words, an accountant should be ready to adjust to whatever changes are brought about and they should be ready to execute effective strategies for clients as late as December.
For larger, well-established companies or high-wealth individuals, their team has already been planning for several different scenarios. For smaller and younger companies, there are also basic strategies they can employ to ensure them from unnecessary vulnerability.
Stephanie Mumford, CPA and partner at Teal, Becker and Chiaramonte, said that on some level everyone can benefit from financial and tax planning.
By Susan E. Campbell
The aging population may signal a predicament for the investment advisory industry.
On one hand, more and more people are requiring expert management of retirement assets. On the other hand is a question of attrition: Who will replace retiring financial planners?
“Our industry is getting older,” said Anthony J. Capobianco, president and CEO of Capobianco Financial Advisers of Clifton Park. “I have seen studies that less than 5 percent of financial professionals today are age 30 or younger.”
These professionals include registered brokers, financial advisors and certified financial planners, all designations that indicate that certain levels of education and proficiency have been achieved.
When this issue was posed to Steven Bouchey, CFP, he recalled that it was not that many years ago that anyone could hang out a shingle and call themselves a financial planner. Today the regulators demand higher standards and the public demands more experience.
Bouchey, who is president and CEO of Bouchey Financial Group based in Saratoga Springs and downtown Troy, said that with today’s technology, anyone can go online and write their will. But with a do-it-yourself financial plan and no experience backing it, the plan won’t stand the test of time.
By R.J. DeLuke
A survey conducted by the American Institute of Certified Public Accountants says running out of money is a top concern among their clients when they are look ahead to retirement.
The elderly are living longer, said AICPA, and Baby Boomers, who hold the largest amount of retirement assets, are supporting both their parents and their children. This has amplified the fear.
Neil Edmonds of the Ascent Wealth Partners office in Saratoga Springs, who handles retirement matters for the company, agreed it is a big concern for people.
“There are not as many defined plans for retirement, like pensions,” he said, and in some cases people have nothing more than Social Security to fall back on.