At CKSL Inc, we believe the guidance of an experienced investment professional is key to helping people meet their financial goals. And, with our comprehensive products and services, we offer solutions to help you make a sound financial plan. If you have yet to develop a personal financial plan, now is the perfect opportunity to create one. By working with a financial advisor, you can develop a plan that preserves your retirement plan distribution today and builds financial security for tomorrow.
- The working world has changed. Everyone wants a golden retirement, but saving for retirement takes planning. For many, a company pension and Social Security will simply not be enough to cover all of the expense of retirement. Social Security's financial problems are long term and will not affect today's retiree's and near-retiree's, but they are very large and serious. People are living longer, the first baby boomers are nearing retirement and the average life expectancy is rising; a child born in the U.S in 2003 has an average life expectancy of 77.5 years. Even today, once you have reached age 65, you can expect to reach age 82 if you are a male and age 85 if you are a women.1
Today, we have a myriad of options to help us prepare for retirement, but without a plan of action, many find themselves falling short when it is time to retire. We suggest future retirees start planning for retirement 5 to 7 years before retirement. There are several variables and risk factors that should be considered when planning for retirement - social security, taxes, calculating future income needs and future health needs to name a few. Each individual retirement situation is unique. To start planning your retirement today, contact us today for a free consultation.
Unfortunately, some people do not start thinking about financial plans for retirement until they are just about ready to retire. That adds a lot of unnecessary stress to their lives. You can avoid having retirement sneak up on you by making plans early. Remember, the sooner you start preparing for retirement and the more thoroughly you plan, the more like you are to enjoy yourself when retirement actually comes.
Rolling Over Retirement Accounts
Chances are you will have to roll over a retirement account at least once in your lifetime. Most likely, it will be when you leave your current employer and take your 403(b) or 401(k) with you. Or you may be eligible to roll over your current IRA into a Roth. You may be eligible for a retirement plan distribution when:
Some plans also allow you to take a distribution when you reach age 59 1/2 and are still employed.
- You retire
- You leave your job, for any reason
- Your employer terminates their retirement plan
- You become disabled
- You die (your distribution will be paid to your beneficiary)
Lump-sum Distributions call for serious planning!
This may be the single largest chunk of money you will ever receive at one time. It may also provide the bulk of your retirement income plan. So, if you are about to retire or change jobs, you have some critical decisions to make. If you desire a comfortable retirement, that lump-sum distribution has to keep working for you. This requires planning and lots of it.
Avoiding the 20% Withholding Trap
Are you leaving your current job? Then you have a great opportunity to roll over your 401(k) into another qualified plan. This will give you many more investment options than either leaving the money in your old 401(k) or rolling it over into your new employer's plan (each option is available at the discretion of the employer).
If you ask, your company plan will be only too happy to send you a check for the full vested balance of your account. If the company makes the check payable to you, it is required to withhold 20% for taxes. This is not good! You are required to come up with the missing 20%, or pay income taxes (plus 10% penalty on the withdrawal if you are under 55). To avoid the 20% withholding, you must arrange for a "direct rollover". At CKSL Inc., we can assist you with this financial transition and help you avoid unnecessary taxes. Contact us today!
Below are links that may be helpful to you in planning your retirement.**
**CKSL Inc., is a separate entity from the linked sites above and has no control, input or authority over information presented on linked sites.
1. Averages reported by National Center for Health Statistics 2005