Tax-Efficient Investment Strategies
When it comes time for you to decide whether to keep your savings in a company retirement plan, move it into an Individual Retirement Account (IRA) or cash out, it may make sense to roll the funds into an IRA.
Holding an IRA can provide you with a wider variety of choices, moreover, if you bequeath an IRA your beneficiaries can take out the required minimum distributions and allow the rest to grow tax-deferred. It is also possible to establish separate IRAs with different investment strategies for each heir.
On the other hand, most 401k's and other company plans require heirs to take the assets soon after the account holder dies, likely leading to undesirable tax consequences. If nearing retirement, you will need to make decisions on where to place your money and this process can affect your lifestyle for years to come.
Strategic Investment Advisors can help you evaluate your financial goals and obligations. We strive to create and preserve your wealth using tax-efficient investment strategies. |
ROLL OVER AND PLAY LIVELY!
When it comes time for retirees to decide whether to keep their savings in a company retirement plan, move the cash into an Individual Retirement Account (IRA), or cash out, it may make sense to roll the funds into an IRA. While the typical company plan offers (former) employees limited investment choices, holding an IRA in a bank or brokerage house provides investors with a wider variety of choices. Moreover, if you bequeath an IRA, your beneficiaries can take out the required minimum distributions and allow the rest to grow tax-deferred. On the other hand, most 401(k)s and other company plans require heirs to take the assets soon after the account holder dies, likely leading to undesirable tax consequences.
If you are nearing retirement, you’ll need to make decisions on where to place money from your company savings account. The decisions that you make prior to retiring can affect your lifestyle for years to come. Please call STRATEGIC INVESTMENT ADVISORS at 704-991-1139 to schedule a consultation. During our initial meeting with you, we will find out what is important to you and your financial goals and obligations. We strive to create and preserve your wealth using tax-efficient investment strategies.
HINT: One estate planning advantage of an IRA is the ability to establish separate IRAs with different investment strategies for each heir.
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What Is A Bond?
A bond is a type of debt security and is a formal contract between a borrower and a bondholder. Subject to the terms of the bond, which is similar to a loan, the borrower owes interest and repayment of the principal amount is paid at a later date, often referred to as “maturity”.
U.S. government securities, corporate bonds and municipal bonds are among the types of bonds available. When looking to finance long-term projects a bond can sometimes be issued to help raise funds if the money is more than a bank can provide. A bond is basically an IOU given by a borrower to a lender.
There are many savings and investment options available. The right mix for you will depend on your age, income, tolerance for risk and timeline for needing funds. Bonds are one option that you can select. At Strategic Investment Advisors we offer a variety of products that can help you accumulate savings and access your money when you need it.
We appreciate the opportunity to help discuss your needs. |
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Why Postpone Social Security?
The longer you postpone collecting Social Security benefits the larger your benefit will be when you do start. Many people still elect to file early at age 62 and as a result lock themselves into lower lifetime Social Security payments. The decision to collect early also locks your spouse into lower survivor benefits.
With this in mind, early filers might wish that they could take back their decision to collect early. The good news is that you can. You can file for a “withdrawal of application” at any time, before reaching age 70, as long as you return all the money you received from Social Security.
Money is vital to a comfortable retirement. Too often people ignore their retirement needs until retirement is almost upon them. Your retirement will be considerably easier and more pleasant if you plan for it well in advance. It is estimated that most retirees will need at least 80% of pre-retirement income.
Strategic Investment Advisors can help you sort through your options and develop a plan that meets your individual objectives and timeline for needing funds. How can we help you?
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Trust Fund Basics
A trust fund is a plan that allows for asset transfers to occur between parties. Beneficiaries are often children but a trust fund may also be established for a charity or non-profit organization.
Trust funds can incorporate cash, stocks, bonds and other investments. They may be structured to pay a predetermined amount or only pay dividends, leaving the principal untouched.
Most trust funds have a manager who is compensated by a set annual fee or a percentage of yearly profits. Recipients may be required to reach a certain age before collecting benefits.
Trust funds are not reserved only for the wealthy. Anyone can establish a trust in order to pass on the benefits of property ownership to a surviving spouse, children or a favorite charity.
As a registered Investment Advisor with $100 million under management our process provides you with approaches to investment management tailored to your personal circumstances. It is a relationship built on trust and strengthened through open, honest communication. How can we help you?
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Understanding Mutual Funds
Few investors understand or have the time to read the mutual fund prospectuses they receive in the mail. To make matters easier the Securities and Exchange Commission has recently put in place new regulations that require fund companies to provide investors with a “summary prospectus” for each fund.
In plain English and without the complicated language that often characterizes mutual fund prospectuses each summary is now required to list the fund’s costs, investment objectives, strategies, risks and performance and might either appear at the beginning of a full prospectus or be sent instead of it.
Few investors have the time to read and accurately evaluate long financial documents and charts and this is where Strategic Investment Advisors can help. We prepare written financial information that is clear and easy to read and work with you to help distill the information and compare your options.
We take the time to discuss your objectives, timeline for needing funds and your personal tolerance for risk before recommending an investment plan. Most importantly, we adjust the plan from time to time as your lifestyle changes and you move closer to retirement. We appreciate the opportunity to help discuss your needs. Call today and schedule a consultation.
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Claiming Your Social Security Benefits
If you are approaching retirement age you should know the basics of collecting Social Security benefits. If born between 1943 and 1954 you can claim your full benefit (known as the “primary insurance amount”) for the years beginning at age 66.
While you can begin claiming Social Security benefits as early as age 62, your benefit beginning at age 66 will be permanently reduced by a specified percentage for each month claimed before age 66.
On the other hand if you delay claiming your benefit between ages 66 and 70, your benefit will increase by 8% each year. Delaying Social Security benefits for all 4 years gains you a 32% benefit bonus for the years beginning at age 70.
It generally pays for single individuals to start claiming their Social Security benefit at age 66 unless you have significant savings that enable you to delay.
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The Peace Of Mind You Deserve
Investor confidence is often reflected by how frequently investors look at their portfolios’ performance. Interestingly, a national financial news network recently conducted a survey to see how often survey respondents looked at their investments in the past six months. The largest percentage of respondents (34 percent) said they “can’t bear to look” while the second largest percentage of respondents indicated “every month or so.” Twenty-two percent of respondents checked their investments “every day,” and eighteen percent said “once a week.” Although these results can be explained in various ways, checking one’s investments daily, or not at all may be an indication of no confidence. If so, it may help to consult with a Financial Advisor.
The past year has been trying for investors due to the downturn in the stock market and housing market. The decisions that you make during a downturn can determine how financially secure you will become when the market turns around. At Strategic Investment Advisors we provide sound, time-tested advice and products designed to meet the objectives of each individual investor. We can evaluate and monitor your current allocation of assets and make adjustments as needed based on your age, tolerance for risk, your goals and timeline for needing funds. |
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