MICHAEL LOFTUS
- Jun 20, 2019
- 2 min read

I'm Behind on My Retirement Savings, What Should I Do?

I want to share with you how to catch up on those #retirement savings! There has been a lot of articles about Americans being behind on retirement savings and yes this is true. You can look at the 08 crash, where you are now, everything has become so expensive, college tuition, I get and I absolutely understand it. Let’s go over some high-level ideas to help you get on track and hopefully, reach your goals. First up, let’s talk about the investment side. Always start with your 401k, your SIMPLE your 403(b), your TSP, etc… If you are working, and your company has some type of plan, that is the best place to start. Why? Because it's tax free! Then you want to make sure you are taking advantage of the companies match program. Now if you're over 50 you make a catch-up contribution. The catch-up rate is $6,000 and contributions for these plans are limited to $19,000. That's a lot of money over time.

So from there you should look at your Roth IRA and your #IRA. Personally, I like the Roth IRA better because when you retire, you want to have some money you can get to without having to pay taxes. The next thing is having it automated, like you would a bill, so that it comes out of your account every single month.

Moving on to health savings accounts, these are great because you have an opportunity to put money in tax-free and take it out tax-free. Here is a fun fact for you, did you know you can make a one-time transfer from your IRA to your HSA and it's tax free? Take advantage of it, let it grow, great idea!

Lets shift gears and talk about needs/wants... Nobody likes to cut budgets but sometimes you have no choice if you want to retire in the near future. Figuring out what you need and what want can be challenging.

Another idea, the minimalist revolution. Minimizing your life is indeed the way to go, especially if you are trying to save for the big picture.

I WANT TO LEARN MORE ABOUT CREATING A FINANCIAL PLAN

You can also take up a "Side Hustle" For those of you who aren't familiar with that term, this means a second job, or a weekend gig. Or maybe you could look into a rental property? Something along those lines.

Our side hustle is marketing. We support several advisers around the country with social media advertising and video content. You have to be creative and think outside of the box! I strongly believe that people do not plan to fail, they fail to plan. It is as simple as that, create a financial plan, stick to it, and everything else will fall into place.

#savingforretirement #financialplanning #playingcatchup

MICHAEL LOFTUS
- Sep 13, 2018
- 1 min read

The Gift of Giving Through Your IRA

Today we're going to talk about donations from your #IRA that can be tax free, that's right I said tax-free. Qualified Charitable Donations are the following:

▶︎ Available to IRA holders (and beneficiaries) age 70.5 and older

▶︎ Up to $100,000 per year

▶︎ Tax-free transfer of #assets directly from IRA to qualified #charitable organization

▶︎SEP and SIMPLE IRAs generally not eligible

▶︎QCD amounts can be used to satisfy age 70.5 RMD's

▶︎ Potentially could wipe out or reduce the amount your Social Security is being taxed

▶︎ #Charity may be named as an IRA beneficiary

▶︎ Assets would pass directly to charity (outside probate process

#socialsecurity #charitablegiving #retirementplanning

MICHAEL LOFTUS
- Apr 10, 2018
- 3 min read

Things to Consider if You Plan to Retire Before 60

Financially speaking, what moves might you want to make?

By choice or by chance, some people wrap up their careers before turning 60. If you sense this will prove true for you, what could you do to potentially make your #retirement transition easier? As a start, you may need to withdraw your retirement funds strategically.

The I.R.S. wants you to leave your retirement accounts alone until your sixties. To encourage this, it assesses a 10% early withdrawal penalty for most #savers who take #money out of traditional retirement accounts prior to certain ages. For a traditional #IRA, the penalty applies if you withdraw funds prior to age 59½; for a workplace retirement plan, the penalty may apply as early as age 55.1

You may be able to avoid that 10% penalty by planning 72(t) distributions. Under a provision in the Internal Revenue Code, you can withdraw funds from a traditional IRA prior to age 59½ in the form of substantially equal periodic payments (SEPPs) over the course of your lifetime. The schedule of payments must last for at least five years or until you reach age 59½, whichever period is longer. Once the schedule of periodic payments is established, it cannot be revised – if the payments are not taken according to schedule, you will be hit with the 10% early withdrawal penalty. All 72(t) distributions represent taxable income.1,2

You can also take 72(t) distributions, in the form of SEPPs, from many #employee retirement plans. To do this, you must “separate from service” with your #employer, i.e., leave or lose your job. Should that happen in the year you turn 55 (or in subsequent years), you can take a lump sum out of the plan without any early withdrawal penalty. If you quit or leave before age 55, you may arrange SEPPs over your lifetime or prior to age 59½, as per the above paragraph.3

If you have a #Roth IRA or Roth employer-sponsored retirement account, things get easier. You can withdraw your contributions to these accounts at any time without incurring taxes or tax penalties. At age 59½ or older, both account contributions and account earnings can be distributed tax free and penalty free if you have held the account for at least five years.3

In addition to your retirement funds, you will need health coverage. A decade may pass before you are eligible for #Medicare, so what are your options past 18 months of COBRA?

The #health #insurance exchanges may be your best resource to find coverage at a decent cost. In fact, you may qualify for health insurance subsidies because your income will drop when you leave work. Retirement (and the loss of employer health coverage) counts as a “qualifying life event,” giving you a special 60-day enrollment window outside the usual November-December enrollment period.4

In the best-case scenario, your employer keeps you on its group plan for a few years after your retirement. (If you have paid for your own health insurance for years, you can keep doing so.)

You may appreciate having a health savings account.

Contributions to #HSAs are tax deductible, and the assets within them grow tax-free. HSAs are sometimes called “backdoor IRAs” because you can use the money within them for any reason without penalty once you turn 65, not just for qualified health care expenses. (All HSA withdrawals are taxable.)5

Think about a conservative retirement income withdrawal rate. The standard 4% baseline may be too optimistic; 3% or 3.5% may be more realistic if you feel you will be retired for 30 years or longer.

Should you claim #Social #Security at 62? You can, as long as you are prepared for the trade-off: the probability of proportionately smaller monthly benefits over the rest of your life compared with larger monthly benefits you could receive by claiming later.

Any early retirement decision should prompt a consultation with a qualified #financial or tax #professional. This is a critical financial juncture in your life, and whether you find yourself at it by choice or by chance, your decisions could have lifelong impact.