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Archive for the ‘Retirement’ Category

Money Management For Senior Citizens

December 10th, 2010

Senior CitizensThe idea of having that luxurious retirement is enticing to us all. It’s also hard work, as many of us tend to live for today and not for tomorrow. For some senior citizens, the idea of retiring comfortably doesn’t become reality until they actually retire – and that can be a time where financial assistance is still a priority.

Money management can be an issue whether you’re 17 or 70. Here are some helpful tips for senior citizens to make and maintain that nest egg you’ve always wanted:

  • Get a financial planner: If you don’t know where to start, financial planners exist for a reason. First and foremost, meet with a professional – and treat it as if it’s an interview. If you feel you need to speak with three or four representatives, then so be it. Keep in mind that your financial planner will be the person who is assisting you manage your money. That’s important.
  • Budget, budget, budget: A lot of seniors live on fixed income, so budgeting is a huge ordeal. Make the budget stick, and do not live outside your means. It’s always good to have money left over at the end of the week where you can put it away for a rainy day.
  • Don’t touch the credit card: People think it’s only the younger crowd that has credit card issues. Finance charges know no age, and they will sneak up on senior citizens just as fast as college students. The last thing you want are ridiculous interest rates to worry about.
  • Be you, not “a grandparent”: This one may rub some senior citizens the wrong way, but in order to budget, you have to take care of yourself first, your grandchildren second. Many grandparents want to give their last dollar to a grandchild that’s only going to buy candy or something else that isn’t totally necessary. Also, you cannot be the financial go-to person in every situation for someone who doesn’t manage money well.

There are plenty of tips that can help all senior citizens manage their money and live comfortably. Let our financial advisors in Fort Worth TX assist you with all of your financial needs. Call us today, or contact us online for more information.

Which IRA is Best: Traditional or Roth?

November 19th, 2010

Whether you’re 17 or 70, there’s nothing wrong with thinking about retirement and primary investment retirement vehicles. An individual retirement account (IRA) can make your retirement a lot more relaxing financially. IRAs offer a way to save money for retirees while earning major tax benefits in the process. They provide tax advantages while saving.

Perhaps the two most common IRAs are the traditional IRA and the Roth IRA. Both offer excellent opportunities when it comes to tax benefits. Both also have specific advantages, depending on the person and his or her financial situation.

The real difference between the two involves the option of paying taxes now versus paying taxes later. Lots of people want to pay taxes up front so they won’t have to worry about it in the future – and also not worry about which tax bracket they’ll be in upon retirement.

With traditional IRAs, tax-deductible contributions are available depending on a person’s level of income. With Roth IRAs, there are no tax-deductible contributions. With Roth IRAs, you can take money out at any given opportunity without a tax penalty. With traditional IRAs, withdraws can occur for individuals at age 59 ½ and can be considered mandatory at age 70 ½.

While some like traditional IRAs, others are more comfortable with Roth IRAs. It all depends on you.

There are plenty of similarities and differences between the two, and our investment advisors in Fort Worth TX will be more than happy to assist you with your questions about IRAs or investment retirement. Call us today, or contact us online for more information.

Wealth Management Topic: Types of Income

October 22nd, 2010

Wealth ManagmentIncome can be divided into three categories: active income, portfolio income and passive income. The earliest type of income you’re likely to experience is active income. Active income is the money you earn by working a job. Portfolio income is money you make through investments, such as stocks, bonds, mutual funds and precious metals. Your earnings or losses in this case are tied to the increases or decreases in the value of the particular investment. Passive income is money you earn without working or residual money generated from work performed in the past. Sources of passive income include stock dividends, real estate rentals, royalties and interest.

If you are thinking about retiring some day, portfolio income and passive income probably seem attractive to you. With proper financial planning, you can turn your active income into both portfolio income and passive income. Ultimately, you want to phase out the active income and make sure you have enough of the other two types of income to sustain a comfortable lifestyle. A successful retirement is the result of careful financial planning. For information about wealth management and retirement planning, contact a qualified Fort Worth wealth management advisor.

Roth IRA Explored

September 20th, 2010

Nest Egg ImageA Roth Individual Retirement Account (Roth IRA) is one of many retirement vehicles. You can make contributions to a Roth IRA account regardless of whether or not you contribute to a 401K plan or similar through work. Unlike a traditional IRA, you don’t receive a tax deduction for the money you contribute to your Roth IRA; however, you are able to withdraw money from a Roth IRA tax free during your retirement years. The maximum yearly contribution you can make to your Roth IRA is determined by the U.S. tax code – your tax professional or Fort Worth investment advisor can provide you with more detail.


What Are the Main Advantages of a Roth IRA?

When compared to the traditional IRA, the Roth IRA has a few potential advantages. These include the following:

  • Tax-free withdrawal when you are over 59.5 years of age and at least 5 years have passed since the Roth IRA was created.
  • No required minimum distributions. With a traditional IRA, you are forced to begin withdrawals when you reach 70.5 years of age.
  • Certain early distributions may be made without incurring early distribution penalties.

Is a Roth IRA Right For Me?

This is a question that is best answered by a professional. A high income level, for instance, may prevent one from participating in a Roth IRA. So, while Roth IRAs may benefit most people, it is important to have your Fort Worth retirement planning professional analyze your individual situation to determine the appropriate retirement savings strategy for you.

The Changing World of Retirement Planning

August 26th, 2010

If you’ve tuned in to any news program over the past year or two, you’ve probably noticed that our economy is changing. Our Fort Worth Wealth Management Group can help provide you with a custom-tailored plan to suit your needs, but here are the basics.

If you’re receiving Social Security, you are likely aware that the government is paying out more benefits than they’re receiving. By 2037, Social Security will be exhausted and beneficiaries will begin receiving only about three-quarters of what they should be, barring any Social Security reform. When Social Security was instituted in 1935, the life expectancy was 62; that’s not that case now. Retirement planning is crucial to avoid the eventual downward spiral of the Social Security program.

We all know that private pension plans have failed all over the place, and many more companies have just discontinued their plans without any warning. To pour salt on the wound, the government backup for failed plans is massively underfunded by billions of dollars. Even state and local government plans are at risk of failure. Contacting a Fort Worth financial advisor is key to planning past your pension.

Inflation is also important to consider. While the rate of inflation hasn’t generally seen any major spikes yet, they will soon – because of our country’s financial state. Inflation has, in the past, gone up to nearly 14%. If it got that high again, what would happen to your hard-earned savings? Robinson Wealth Management Group can help you plan for the unthinkable – give us a call today.

TOP 5 WAYS TO GET STARTED WITH A RETIREMENT PLAN

June 14th, 2010

These are the first steps to start building your retirement plan.

 Are you like countless others, wondering where to start retirement planning? No need to worry or procrastinate any longer. The most important thing is to do is to simply begin. Here are five top ways to help you get started.

 Retirement Plan Step #1 – Start Saving

The only way to create wealth is to save. Only by saving will you have money in the bank or otherwise invested. By the time retirement rolls around, the dollars you save today may have grown many times over. The key is to begin and to begin soon. Thanks to the miracle of compounding interest, it is the money you save today that has the opportunity to grow by the most. Each year you wait can be costly, so make sure to save enough.

 Retirement Plan Step #2 – Use Your 401(k) Plan

Although not every employee will have a 401(k) plan available to them at work, those who do will be hard-pressed to find another retirement planning opportunity as lucrative as that one. Thanks to the benefits of tax-deferral and automatic savings, you’re likely to find your account balance growing faster than you previously thought possible. Plus, due to the penalty for early withdrawals, you’re unlikely to take your money spontaneously (That’s a good thing because you want it to be there for your retirement).  A 403(b) or a 457 plan may be available to some employees instead of a 401(k) plan and, if so, typically work very similarly. Other employees won’t have access to any of these plans. That’s why there are IRAs.

 Retirement Plan Step #3 – An Employer Matching Program Means Free   Money!

If your employer offers a matching program as part of your 401(k) plan, you’ll have the opportunity to receive additional funding for your retirement at no cost to you. But to receive the funding, you need to participate to a certain level in your 401(k) plan. However, this is a no-brainer! After all, you’d never knowingly say “No” to free money, right? 

Retirement Plan Step #4 – Don’t Forget The IRA’s

A traditional IRA contribution allows your money to grow tax-deferred. Depending on your income, tax filing status, and ability for you (and/or your spouse) to contribute to a workplace retirement account, your IRA contribution may even be tax deductible, further saving you money on this year’s taxes.

Retirement Plan Step #5 – A Roth IRA Could Be Even Better

Imagine access to a retirement fund without having to pay income taxes. It could happen – through the Roth IRA. Although you won’t receive a tax deduction for any contributions you make, your money grows tax-free, making it a truly fantastic place to begin saving for retirement.

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FINANCIAL PLANNING RESOURCES FORMS

June 2nd, 2010

Our Fort Worth Retirement Planning and Money Management Department have compiled a list of forms that we feel would help you manage various aspects of your financial record keeping needs. Feel free to download these forms or share them with your friends.

Financial Planning Forms