“ To me , ideas are worth nothing unless executed . They are just a multiplier . Execution is worth millions .”
FOR WHAT IT ’ S WORTH
RETIREMENT IS EVERYONE ’ S FUTURE GOAL
BY ALISON FREE
The question isn ’ t at what age I want to retire ; it ’ s at what income .
- George Foreman
Isn ’ t that the truth … that is why it is so important to take the time to plan for your retirement . As discussed in past articles , it is never too early to start strategizing for your future .
Last issue , I provided a lot of shocking statistics about longevity and retirement income . ( If you missed it , you can go to Apple News and search Connect Magazine . How cool is that ?)
I suggested that people start planning by identifying specific needs and goals ; to do that we must start with current assets and current liabilities to determine Net Worth . By putting that information down on paper , you can begin to see the areas that need attention and start to construct the ultimate goals .
It is a simple process to list assets like checking , savings accounts , money markets and CDs . Add other long-term assets like stocks , bonds , annuities , IRAs , 401 ( K ), and real estate . Then put together the current and projected income from salary , Social Security , dividends , interest and pensions . That will give you your total assets .
Next , note all debt from your monthly expenses , credit card payments , car payments , any loans and mortgages . Subtract this total from your total assets and you will have your net worth .
You will need approximately $ 1,060,000 saved if you want to draw $ 5000 per month for 30 years , assuming 6 % annual investment returns and 2 % inflation . This information should give you a starting point from which to put steps in place to commit to a plan of action that will bring clarity and direction .
Don ’ t feel defeated if you have more debt than assets-we have all been there and with a plan , you can turn that around . This exercise helps to determine if you have or can eventually create any discretionary income that you can begin to grow . Most of you reading this trade magazine are independent contractors or selfemployed people who are always looking for deductions to minimize income tax . One practical idea would be to look into opening a retirement account like a SEP , Solo-401K or a Simply IRA Plan . These are all retirement plans for self-employed people . You don ’ t need much to start one and you can gradually increase your contributions . Go to IRS . gov and search Retirement Plans for Self-Employed People for all the details on contribution limits and tax deductions . Most plans allow you to contribute up to the due date of your tax return ( some include extensions ).
Another very wise idea is to consider a Universal Indexed Life insurance policy , which provides flexible payments ; protection for your family and over time can create tax-free retirement income . Life insurance is an amazing way to strategize many retirement goals including transferring wealth tax-free … a topic for another time . For What It ’ s Worth .
“ To me , ideas are worth nothing unless executed . They are just a multiplier . Execution is worth millions .”
Steve Jobs
I can be reached at Alison . Free @ Bankers . com if you have any questions , ideas or suggestions for future topics .
Alison is a FL licensed real estate broker with over 25 years of experience in our local market and is now licensed by the Florida Department of Financial Services . She is a captive agent and independent contractor with Bankers Life . Over 7 years ago , she strategically shifted her focus as a trusted advisor in real estate , to use the skills and gifts developed as a Realtor ®, to help others put protections in place for their retirement . She has worked diligently to find creative and unique ways to develop plans to help her clients find the peace of mind they deserve . Understanding the challenges and obstacles you face daily , as Realtors ®, to build your business and ultimately improve your life is why she is one of our magazine contributors . She has dedicated her life to helping others improve theirs .
26 RPCRA . ORG | MAY / JUN 2017