Invest

Investments can play a key role in any financial plan. For individuals, a mix of investment products, income and pension plans can help address short- and long-term goals.

For employers, I can offer assistance with savings and pension plans.

401 (k) retirement plans and Individual Retirement Accounts
529 qualified tuition plans
Annuities
Mutual funds
Group retirement and savings plans

401 (k) Retirement Plans and Individual Retirement PlansTOP

Everyone looks forward to retirement, but not everyone looks forward to planning for it. A strong financial plan is aimed to take the hassle out of this process and secure a balance of investment products that may yield the retirement lifestyle everyone dreams of.

While most working Americans will receive Social Security benefits, in most cases, they will not be sufficient to provide a comfortable retirement income. Depending on personal circumstances, either a 401(k) retirement plan or an Individual Retirement Plan can help.

401(k) Retirement Plans

Employer-sponsored 401(k) retirement plans offer several benefits, including potential employer contributions. Enjoy tax savings by setting aside a portion of pre-tax salary in a tax-deferred investment account, which can also generate compound interest. Depending on the type of plan selected, 401(k) plans can also offer yields from a variety of investment options.

Working together with a financial planner, decide the amount and frequency of 401(k) contributions while taking into consideration contribution limits and employer requirements. Some advantages include:

Employer contributions in most cases
Contributions taken from pre-tax salary allow for a reduced tax rate (Traditional 401K)
Contributions taken from post-tax salary allow for tax free growth if taken in retirement (Roth 401K)
Tax deferral of compounding income and growth
The opportunity to select from a variety of investment products

Individual Retirement Plans

Another option for retirement planning is to contribute to an Individual Retirement Plan (IRA). IRAs allow a variety of investment options, including variable annuities, stocks, and government securities. There are several types of IRAs, including the Traditional IRA, Non-Deductible IRA, or Roth IRA.

A traditional IRA is funded through after-tax dollars, and can be contributed to even if a client holds another retirement plan, such as a 401(k). A traditional IRA has several tax advantages: all income tax is deferred until money is withdrawn, and the growth of contributions and earnings is generally tax-deferred. The non-deductible IRA is similar to the traditional IRA except that contributions are made with after-tax dollars, and there is no income tax deduction allowed. In contrast to those two options, contributions to a Roth IRA include income tax payments, but when money is withdrawn, it is distributed tax-free as long as it is considered qualified.

The Roth IRA offers tax deferral on any earnings in the account. Withdrawals from the account may be tax free, as long as they are considered qualified. Limitations and restrictions may apply. Withdrawals prior to age 59 ½ or prior to the account being opened for 5 years, whichever is later, may result in a 10% IRS penalty tax. Future tax laws can change at any time and may impact the benefits of Roth IRAs. Their tax treatment may change.

Other Retirement Planning Options

Depending on the nature of your employment, you may be eligible for other kinds of retirement planning options. For example, 457 plans are designed for independent contractors or employees of a state or local government or a tax-exempt organization. These plans allow participants to exclude certain specified types of salary from their gross income. Other options may include Deferred Compensation Plans and 403(b) plans, which are designed for employees of non-profit corporations.

529 Qualified Tuition PlansTOP

A college education is expensive – and prices for tuition and living expenses are only getting higher. Families with children might consider planning how to finance an education as early as possible, so as to take advantage of tax and investment opportunities and contribute to pre-paid tuition rates.

Many states and educational institutions offer a 529 Qualified Tuition Plan (529) to help finance a college education. The specifics vary between states and institutions: some guarantee a minimum rate of return, while others offer tax incentives. Even if your state does not offer a 529 plan, many allow non-residents to contribute to their plans, and private plans are available.

There are two main types of 529 plan: a pre-paid tuition plan, and a college savings plan. Pre-paid tuition plans involve purchasing units or credits at participating educational institutions that can applied to tuition and, in some cases, living expenses. Most are sponsored by state governments and have residency requirements. College savings plans establish an account for a student that can be used to pay eligible college expenses, and allow contributors to choose among several investment options.

It is important to carefully consider how to invest in a 529 plan, since it can impact a student’s eligibility to participate in need-based financial aid programs. A financial planner can help balance assets held in college savings plans against financial aid requirements.

Some of the advantages of 529 Plans include:

Depending on the state, the ability to deduct 529 contributions from state income tax returns
Federal and state tax deferral of compounding income and growth, if contributions are used for eligible college expenses
Matching grants in many states
Some pre-paid 529 qualified tuition plans sponsored by a state government are guaranteed
College savings plans allow the option to invest in a variety of investment products
When money is withdrawn from a 529 plan, the student typically pays little tax, due to a low income tax rate

Working together, we can examine college investment options to build a customized portfolio that takes into consideration your financial goals, tolerance to risk and timeline. Contact us today to find out more.

Prior to investing in a 529 Plan investors should consider whether the investor's or designated beneficiary's home state offers any state tax or other benefits that are only available for investments in such state's qualified tuition program. Withdrawals used for qualified expenses are federally tax free. Tax treatment at the state level may vary. Please consult with your tax advisor before investing.

Group retirement and savings plansTOP

Business owners can use group retirement and savings plans to help attract and retain quality employees.

Both business owners and their dedicated employees are working towards a safe, secure future. Either provided independently or paired with group benefits, a group savings plan is a convenient, flexible and affordable way for employers to help employees reach pursue long-term financial goals.

Employees gain instant tax savings for their retirement plan contributions, since they are made using pre-tax payroll deductions. They also receive the financial confidence that comes from knowing every month they are building towards retirement.

A financial planner can help business owners and their valued employees choose group retirement and savings products. Choose from products like:

401(k) Plans
Simplified Employee Pension Plans
Qualified Retirement Plans
Other retirement savings plans designed specifically for employee groups

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