Wealth Management Investment Adv

Retirement Planning		On average Americans spend about 90,000 hours working to build their retirement nest egg and less than 10 hours planning for it
Whether your financial goals include accumulating wealth for retirement, transitioning your retirement plan savings when leaving a place of employment, or taking income distributions during retirement, Individual Retirement Accounts (IRA) offer flexible, tax-efficient strategies. When is the right time to think about retirement? Now is the right time to start thinking about your retirement goals—how much you need to save each month, your investment time horizon, determining your risk tolerance, and finding the right kinds of investments to build your retirement nest egg can make a difference. We can help map out a retirement savings strategy that fits your needs and your budget. Expenses After Retirement Spending patterns for those who choose to retire early tend to vary from those who delay retirement.... Early retirement. Early retirees typically spend more than other retirees. They may travel more or still be making mortgage payments. They may not have had to make the hard budget decisions yet that many older retirees face. Middle retirement. In this phase, retirees are gradually making the adjustment to pragmatic budgeting and living within their means. They're likely to have paid off their mortgages, generally enjoy good health, and have not yet had to deal with large medical outlays. Late retirement. Typically, health deteriorates and medical expenses consume a larger percentage of assets late in life. It's a common mistake to underestimate the scale of these expenses, especially those that will be self-financed rather than paid by a social welfare program such as Medicare or Medicaid. Sooner is better than later The best way to prepare for retirement is by combining the benefits of compounding, consistent saving, reductions in taxable income and taking advantage of tax-deferred growth. IRA Basics What is an IRA? An Individual Retirement Account (IRA) is a tax-advantaged account designed to help you save for retirement. There are two main types, Roth and Traditional, each with different advantages. With a Roth IRA, you make contributions with money you’ve already paid taxes on (after-tax) and your money may grow tax-free, with tax-free withdrawals in retirement, provided that certain conditions are met. In a Traditional IRA, you make contributions with money you may be able to deduct on your tax return and any earnings potentially grow tax-deferred until you withdraw them in retirement1. In either case, the tax benefits allow your savings to grow, or compound, more quickly than in a taxable brokerage account. Conversion of a Traditional IRA to a Roth IRA results in the converted funds becoming taxed in the year they are converted (with the exception of non-deductible assets).			Take Control of Your 401(k) Retirement Savings with an IRA Rollover. If you've changed jobs or recently retired, you may be wondering what you should do with a 401(k) or other retirement savings account from a former employer. *Some advantages are:* ü Allow you to continue to save for your retirement ü Gives you access to professional investment advice. ü Enables you to take control of your overall retirement plan and investment options. ü Allows you to move your money out of your former employer's retirement plan without tax consequences or other penalties ü Keeps your savings invested tax-deferred ü May provide better estate planning benefits than your current retirement savings plan. Transfers vs. Rollovers Transfers and rollovers are two ways of moving IRA sheltered assets between financial institutions. A transfer is normally initiated by the institution receiving the funds. A request is sent to the disbursing institution for a transfer and a check (made payable to the other institution) is sent in return. This transaction is not reported to the IRS A rollover (sometimes referred to as a 60 day rollover) can also be used to move IRA money between institutions. A distribution is made from the institution disbursing the funds. A check would be made payable directly to the participant. The participant would then have to make a rollover contribution to the receiving financial institution within 60 days in order for the funds to retain their IRA status. This type of transaction can only be done once every 12 months with the same funds. Contrary to a transfer, a rollover is reported to the IRS. The participant who received the distribution will have that distribution reported to the IRS. Once the distribution is rolled into an IRA, the participant will be sent a Form 5498 to report on their taxes to nullify any tax consequence of the initial distribution. At Ohanesian / Lecours we will guide you through the rollover process every step of the way. Getting Started: Find out how to do a Rollover, call us toll-free at 1-800-525-9295

Disclosures: * The information on this page is for informational purposes only and does not constitute, and should not be construed as, professional, legal or tax advice.
To determine your individual tax situation and specific needs, please consult a professional tax advisor. * Information contained in these sections merely highlight some benefits.
There are risks involved with all investments that could include tax penalties and risk/loss of principal.

Ohanesian / Lecours
Member Financial Industry Regulatory Authority (FINRA) www.finra.org
and Securities Investor Protection Corporation (SIPC). www.sipc.org

Back to the Ohanesian / Lecours Homepage

All information contained herein is for informational purposes only. Providing said information does not in any form - oral, written, or otherwise -
create, establish or develop any relationship between Ohanesian / Lecours and the reader of the information on this site.
This website is best viewed with Internet Explorer.

Retirement Planning

Transfers vs. Rollovers