Amplify Financial : Retirement Planning

Retirement Planning

It is no longer unusual to expect your retirement to support you for 20, 30, or even 40 years. Today’s longer and more active retirements require greater financial resources. There are several options available and your AMPLIFY Financial Consultant is available to help you choose the best combination for your needs.

401(k) PLAN

Tax-deferred investing through employer sponsorship

A 401(k) plan is a great starting point for your retirement plan. If your employer offers such a plan as a benefit of employment, you may benefit from taking full advantage. A 401(k) enables you to contribute a pre-tax portion of your salary to a retirement plan, with many employers offering a matching program as an added benefit of employment. Your AMPLIFY Financial Consultant can help you understand all the benefits of a 401(k) and develop a comprehensive retirement plan using your 401(k) as its basis.

INDIVIDUAL RETIREMENT ACCOUNTS (IRAS)

Your personal retirement investment

Individual Retirement Accounts, or IRAs, are becoming a critical retirement investment option. IRAs allow you to make annual contributions that are allocated to the investments of your choice. Contribution limits are $3000 for the 2004 tax year and have been increased to $4000 per year in 2005-2007. You have two main IRA options: Traditional and Roth.

Earnings in a traditional IRA accumulate tax-deferred until withdrawal and are completely tax-deductible if you are not participating in an employer sponsored retirement plan. Withdrawals prior to age 591/2 are subject to a 10% IRS penalty tax.

Roth IRA contributions are subject to income tax and are not tax-deductible, but all contributions and earnings are tax-free upon withdrawal, provided certain requirements are met. You must meet certain eligibility requirements to participate in a Roth IRA.

FIXED ANNUITIES

Unlimited tax-deferred investing for your future needs

A fixed annuity is an insurance contract designed to provide, upon annuitization, a series of regular payments that provide an income stream for a specified period of time (a number of years, or for life). Fixed annuities can offer you three advantages over many other retirement savings plans:

• Ability to structure your annuity to provide an income stream you cannot outlive
• Annual contribution amounts are unlimited
• Annual earnings in the annuity accumulate tax deferred

If you’ve already taken maximum advantage of available tax-favored investments, including an employer-sponsored retirements plan and an IRA, you may want to consider a fixed deferred annuity. You agree to deposit a lump sum or make a series of payments over a number of years. Your payments are invested on your behalf and your money accumulates on a tax deferred basis at guaranteed interest rates *(guarantee based upon claims paying ability of issuer.) At retirement you can receive a guaranteed lifetime income, income for a specified period of time or a lump sum. Earnings are taxed as ordinary income upon withdrawal. Withdrawals from annuities prior to age 59 & 1/2 are subject to a 10% IRS penalty tax and surrender charges may apply.

Fixed annuities are long-term investment vehicles designed for retirement purposes. Gains from tax-deferred investments are taxable as ordinary income upon withdrawl.

LONG-TERM CARE INSURANCE

Keep your future in your hands

With Long-Term Care Insurance, you can plan for the future while preserving your assets for retirement needs and financial independence for both you and your loved ones. Planning ahead with Long-Term Care Insurance gives you greater flexibility when it comes to where you receive your care.

Whether you need to manage transitions, learn about your savings and cash management or identify and plan your retirement and investment options Dan wants to help. He offers a complementary 30-minute consultation to help you identify the financial strategy that’s best for you. Please contact Linda Koop at 512-519-5476 or use our contact form to set up an appointment.