What we offer:
401(k) or 403(b) offered by your employer. For most people, this is the easiest and best place to START investing for retirement.
Qualified plans, Roth IRA
• Private Savings i.e. CD
Qualified plans: 401(k) 403(b)
Permanent Life Insurance
After Tax Strategy – when you set aside a portion of your after tax income into an account earmarked for retirement. Taxes are paid annually on any earnings. An example of this type of savings is a Certificate of Deposit.
Tax-Deferred Strategy – when you set aside a portion of your after tax income for retirement, earnings on the account grow tax-deferred. When retirement income is taken, taxes are due on the tax-deferred gain. A Non-Deductible IRA or an annuity is an example of this type of savings.
Pre-Tax Strategy – might include an Employer sponsored qualified plan, like a 401(k) and 403(b) plan. You don’t pay current taxes on contributions made to the plan and earnings grow tax-deferred. Later when you take retirement income the benefits are income taxable.
Tax-Free Strategy – is similar to the Tax-Deferred Strategy: you set aside a portion of your after tax income, and earnings grow tax-deferred. Retirement income is received income tax-free. A Roth IRA is an example of this type of savings. Another type of financial vehicle is permanent life insurance.
*Examples shown (other than CD): No bank guarantee; Not a deposit; Not FDIC/NCUA insured; May lose value; Not insured by any federal or state government agency.
Your outlook on future tax rates may drive some of your retirement strategy
• If you think future tax rates will be lower, then saving today on a pre-tax basis, such as a qualified plan or Traditional IRA, makes a lot of sense.
• If you think future tax rates will be higher, then you may want to consider a tax-free retirement strategy such as a Roth IRA or permanent life insurance