PROTECT YOUR FUTURE with a Yearly Wealth Checkup
Your financial security might be vulnerable to life ’ s constant changes , but an annual review of your retirement plan can help safeguard your money — and your future .
Wealth planning is an ongoing , fluid exercise that should be revisited annually with your financial advisor . Start the conversation today in these key areas .
Plan Contributions . Review your 401 ( k ) or IRA to ensure you make the maximum allowable contributions . If you ’ re over 50 , you may be eligible for additional catch-up contributions over the maximum .
What ’ s Your “ Exit Strategy ” for Retirement ? Plan for a smooth transition to retirement with these three exit strategies :
ÎÎCONSIDER BOTH YOUR DREAM RETIREMENT AND THE PROJECTED VALUE OF YOUR PORTFOLIO TO DEVELOP A REALISTIC RETIREMENT BUDGET . What needs to happen to make that vision a reality ?
ÎÎTAKE ADVANTAGE OF YOUR SOCIAL SECURITY BENEFITS BY WORKING UNTIL YOUR FULL RETIREMENT AGE , WHICH VARIES BASED ON YOUR BIRTH YEAR .
ÎÎPAY OFF YOUR DEBT SO THAT YOUR FUNDS CAN GO TOWARDS YOUR LIFESTYLE INSTEAD OF FEES AND PENALTIES .
This information is not intended to be a substitute for specific individualized tax advice . Discuss your specific tax issues with a qualified tax advisor .
Securities and advisory services offered through LPL Financial , a registered investment advisor , Member FINRA / SIPC . Insurance products offered through LPL Financial or its licensed affiliates . Sterling National Bank and Sterling Wealth Services are not registered broker / dealers and are not affiliated with LPL Financial .
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Required Minimum Distributions ( RMDs ). IRS penalties for not taking distributions on certain accounts are steep : 50 % of the required amount . Make sure you ’ re on track to withdraw these mandatory disbursements , and use the opportunity to identify stray retirement accounts for consolidation .
Beneficiaries . Marriage , divorce , and having kids are just a few of the ways your priorities might change . Update declared beneficiaries and consider converting a non-retirement IRA into a “ Stretch IRA ,” ensuring that the tax-deferred income benefits extend to future generations .
Gifting . Reduce tax burden by taking advantage of annual gifting opportunities . A 529 allows you to save for a loved one ’ s college tuition , and the assets are not factored in determining federal financial aid for the elderly . With some stipulations , a special exclusion allows five years ’ worth of gifts — up to $ 70,000 or $ 140,000 for married couples — to be contributed at once .
Portfolio Balance . Group your investments into taxable , tax-deferred , and tax-free categories . This exercise might reveal you ’ re over-invested in one area , namely traditional , tax-deferred retirement accounts . You may benefit from increasing your allocations to tax-free vehicles by investing in municipal bonds or by converting an account to a Roth IRA .
Consultants at Sterling Wealth Services can help you protect your financial future with a comprehensive wealth plan . Contact your relationship manager today at 855.274.2800 .
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