If you want to make sure that you and your family have financial security throughout your golden years, it’s helpful to start your financial planning as early as possible. But, even if you got a late start on planning for retirement, it’s still possible to reach your financial goals with the help of our financial advisors.
At TPI Group, our retirement planning services begin with a holistic retirement planning assessment. By taking into account your current retirement savings and retirement income goals, we can devise a wealth management retirement plan that will provide you with sufficient income to enjoy your golden years with peace of mind.
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Retirement Income Planning, Simplified
There are four different kinds of plans we will take into consideration when planning for your retirement accounts; a defined benefit plan, qualified benefit plan, non-qualified benefit plan, and/or an annuity.
Defined Benefit Plans & Qualified Benefit Plans
Defined-benefit plans, like 401(k)s, facilitate retirement planning because they provide fixed, pre-established benefits for employees upon retirement. The specific amount individuals receive varies according to their employment income and the length of their employment.
These kinds of retirement plans offer either annuity or lump-sum payment options. Through annuity payments, individuals receive consistent, monthly payments for the rest of their lives. In a lump-sum payout, the entire value of the plan is given out in a one-time payment.
Although many people choose regular payments because of the security and consistency they provide, lump-sum payments also offer advantages. When you cash out your plan in a lump-sum payment, you can use these funds to leverage other investment vehicles to help reach your retirement objectives.
Non-Qualified Benefit Plans
There are a variety of tax-deferred, employer-sponsored retirement savings plans that fall outside Employee Retirement Income Security Act (ERISA) guidelines, including deferred compensation plans, executive bonus plans, group carve-out plans, and split-dollar life insurance plans.
Executive Bonus Plans
Through an executive bonus plan, companies offer high-level executives employer-paid premiums for life insurance as additional compensation. These kinds of bonus payments are considered compensation and, therefore, taxable. Employers sometimes offer further compensation, in addition to the insurance premiums, so that executives are not impacted by additional tax obligations, but this practice is not set in stone. If you want to manage the tax implications of your bonus plan, speak with a retirement financial advisor.
Deferred Compensation Plans
Both deferred compensation plans and salary-continuation plans provide executives with additional retirement income, but each one has a different source of funding.
Deferred compensation plans are true to their name because the executive postpones part of his or her compensation, which is then provided after retirement. With salary continuation, employers fund retirement benefits for the executive.
In either case, the accumulated earnings can be tax deferred until retirement, at which point, the income from these plans are taxed as normal income.
Group Carve-Out Plans
These plans are another type of insurance compensation, where an employer "carves out" an employee’s life insurance from the company group policy and establishes an individual policy, thereby saving the individual from certain income tax implications.
Split-Dollar Life Insurance Plans
Sharing certain similarities with carve-out plans, a split-dollar plan also offers key employees with additional life insurance coverage. With a split-dollar setup, the employer purchases the policy, and ownership is split between the employer and the employee. These arrangements offer benefits for both employers and employees, as the employee’s beneficiaries receive the death benefit and the employer receives a portion equal to its investment in the plan.
Fixed Annuities
Life annuities and term-certain annuities provide a steady stream of payments to the individual during retirement. There are several different kinds, and they can be structured in a variety of ways to suit individual needs and retirement goals.
The various structures of life annuities mean that the amount and length of monthly payments can vary significantly, so they will factor differently into each individual’s retirement income planning.
Tax Considerations for Retirement Income Planning
When planning for retirement income, it's essential to consider the tax implications that can affect your financial situation. At TPI Group, we recognize the importance of tax considerations in retirement income planning and offer expert guidance to help you optimize your tax strategy.
As you transition from earning a regular income with ordinary income tax considerations to relying on retirement savings, understanding how different sources of income are taxed becomes crucial. Our team of experienced professionals will assess your specific situation, including tax bracket and tax bill, retirement accounts, pensions, Social Security benefits, and investments, to develop a tax-efficient plan.
By strategically structuring withdrawals and distributions, taking advantage of tax-deferred accounts, and utilizing tax-efficient investment strategies, we can help minimize your tax burden during retirement. We also stay up-to-date with the latest tax laws and regulations to ensure you benefit from any available deductions, credits, or retirement-specific tax incentives.
Furthermore, we assist in long-term tax planning, considering factors like Roth conversions, required minimum distributions (RMDs), and potential estate tax implications. Our goal is to maximize your after-tax income and preserve your wealth for the future.
With TPI Group's expertise in tax diversification for retirement income planning, you can feel confident that your retirement strategy will be optimized to minimize tax liabilities and enhance your financial well-being.
Reach Your Retirement Goals With the Help of a TPI Group Financial Advisor
At TPI Group, we understand that as you approach retirement age, it's natural to have concerns about your financial stability and whether your current asset allocation and investments will generate enough income to sustain you throughout your retirement years. That's why we offer comprehensive retirement income planning services to help you navigate this important phase of life with confidence.
Our team of experienced professionals is well-versed in all aspects of retirement planning, including accounting, financial management, taxation, investment strategies, and estate planning. We recognize that each individual's retirement goals and financial situation are unique, which is why we tailor our services to meet your specific needs.
Complete Accounting, Taxation and Retirement Planning Services
At TPI Group, we offer a full array of accounting, financial, taxation, investment and estate planning services. When nearing retirement age, it’s normal to question whether or not your asset allocation and investments will lead to enough income throughout your retirement years.
Whether you already have an advanced retirement planning strategy, or simply want to learn more about mutual funds, tax deferred accounts, benefit plans and various investment vehicles, you can get your retirement planning on track with a tax planning and investment strategy to meet your retirement objectives with the help of a certified financial planner.
Don't leave your retirement to chance. Let TPI Group's retirement income planning services empower you to make informed decisions and create a solid foundation for your financial future. Contact us today to schedule a consultation with one of our certified financial planners.