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We believe in – and live by – a philosophy of excellence.

Average is not good enough … Our goal at Family Investment Center is excellence. We find excellent investment products and supervise an excellent service package. We maintain a library of excellent research materials and financial planning resources. We also demand top safety and security for our clients.

We won’t settle for average. We continually seek top managers or securities and meld them into superior custom portfolios. Each palette of investments is carefully tailored to personal or family goals. We enlist excellent managers, research, resources, and effort for our clients. Don’t settle for average. You deserve excellence.

Please search our blog posts for answers to common investment questions, and we look forward to sharing our knowledge and experience with you first-hand.

How Are You Planning for Retirement?

How About Starting With a Blueprint

Like a construction project, every good plan for a solid foundation involves a blueprint with overarching principles that must be followed. To develop your blueprint when you are planning for retirement, consider these three concepts:

1. Income vs. Expenses

The majority of retirees count their income as Social Security and the savings they’ve amassed. While the pension is quickly becoming a thing of the past, current retirees might be enjoying theirs right now. Regardless of whether you’re on a pension, 401(k) or IRA, the key to income success while in retirement is to coordinate your monthly expenses with monthly income.

Choosing a system of withdrawing your savings in a way that minimizes your tax load is important, and knowing from which accounts to withdraw first can be difficult to determine.  If you’re unsure of the best strategy, be sure to ask an advisor for help.

2. Distribution

Although profit sharing, 401(k) plans, deferred compensation, IRAs and tax-sheltered annuities are all more popular today than the pension plan, many still face the decision of what to do with a pension in retirement.  There are usually two main options: annuitize the pension into monthly payments or take one lump-sum payment. For many, taking the lump-sum payment provides better long-term growth potential and flexibility, but getting a large amount of money at once can be challenging to budget for many retirees. Plus, any amount of that money that isn’t rolled into an IRA will face federal and state income taxes. 

 

There are also many things to consider with alternatives to an IRA rollover. Be sure to find out about investment restrictions, surrender charges (in some but not all cases), and the tax consequences of all of your options. If you’re in an employer plan that allows you to stay on after termination or retirement, your plan fees might be low, and you could have a number of investment options, which is a good thing in planning for retirement.  Ask lots of questions about all the options.  If you’re unsure, talk to an advisor.

3. Know Your Risks

Not everyone is going to have the same opinion where risk is concerned. People are living well into their 80s today, which means they need to consider more carefully how they approach investment risks as they age. What might be considered “risky” for a 60-year-old in investment planning could be “safe” for a person who has decades to go before they retire.

However, risk must also be taken into account in regard to how long you plan to be in retirement. People retiring today could have a 30-year retirement horizon, and inflation can make a huge impact on a retirement portfolio.

Dan Danford, CEO of Family Investment Center, says, “If you’ve ever built a house, you know it's easy to get caught up in the details: lights, appliances, floor coverings and finishes. Deciding on all these things can be exhausting. Planning for retirement can feel a bit like that. But just like building a house, in retirement, the right foundation creates lasting value.” Find out more about how Family Investment Center can help you build a solid foundation by contacting us today.

 

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