Prepare for the Unexpected

Managing Life Changes

Whether you’re changing careers, buying a new house or starting a family, we can help you live the life you choose today, while still prudently planning for the future.

Wherever your work or life leads you, we can assist you in managing your cash flow and allocating your resources, helping you reach both your short- and intermediate-term goals without endangering your long-term plans.

If you’re planning to buy a new home, we can help you allocate an appropriate portion of your holdings to investments designed to facilitate that purchase. We can also assist with managing the funds needed for your changing lifestyle, including mortgage, property taxes and related expenses.

If you’ve recently started a family – or are contemplating doing so – we can help you optimize your investments, meet the expenses you will incur over the next several years and help make sure your life goals are achievable and realistic.

As you change employers – or go to work for yourself – you typically have several options for dealing with the funds you’ve accumulated in your former employer’s retirement plan, such as a 401(k) or 403(b). The option you choose could have significant tax implications or alter your existing retirement plan.

Making a Plan

Your goal should be to build up enough assets to provide adequate income to meet your needs throughout retirement – accounting for factors like increased longevity, healthcare costs and inflation. To accomplish this goal, you need a plan.


How Much Money Will You Need?

To maintain your standard of living, a general rule of thumb suggests your annual retirement income should equal approximately 80% of your income the year you retire. So, if you determine you’ll earn $100,000 the year you retire, you’ll need to save enough to provide $80,000 for each year you are retired.

Once you’ve evaluated your income needs for retirement, it’s time to develop a well-crafted retirement plan. We can help guide you through this often complex process, which can involve different strategies, each with possible tax deferred advantages. These strategies may include:

  • Contribute to your employer’s retirement plan, such as a 401(k) or 403(b), and take advantage of match programs; consider automatic payroll deduction for dollar cost averaging. Or roll over assets from a previous employer’s plan.
  • If you don’t have an employer plan, or if you wish to invest separately from your employer sponsored plan, consider investing regularly using an Individual Retirement Account (IRA). You may wish to discuss the tax implications of both traditional and Roth IRAs with your financial advisor to determine which best meets your needs.


Coping With the Unexpected

Widespread economic weakness and market fluctuations have taken a toll on many investors. If you are at all concerned your retirement plan may no longer be sufficient to meet your needs, don’t delay taking action. While there are no magic fixes, a number of effective strategies do exist for potentially minimizing losses, generating additional income and planning for growth, including:

  • Planning for long-term care needs not covered by Medicare or other insurance
  • Paring your spending and rethinking non-essential goals
  • Allocating a portion — or a greater portion — of your portfolio to undervalued, growth-oriented investments
  • Preserving income with financial products, such as annuities1
  • Hedging income against rising inflation with investment options that adjust to changes in the inflation rate, such as Treasury Inflation-Protected Securities (TIPS)2
  • Returning to work on either a full-time or part-time basis

Note: Growth-oriented investments generally involve greater risks and may not be appropriate for every investor.

There is no assurance that any investment strategy will be successful. Investing involves risk and investors may incur a profit or a loss. Past performance is not indicative of future results.

Please note, changes in tax laws or regulations may occur at any time and could substantially impact your situation. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of Raymond James we are not qualified to render advice on tax or legal matters. You should discuss any tax or legal matters with the appropriate professional.

1Guarantees are based on the claims-paying ability of the issuing company.

2The principal increases with inflation and decreases with deflation, as measured by the Consumer Price Index. At maturity you are paid the adjusted principal or original principal, whichever is greater. Increases in TIPS principal value as a result of inflation adjustments are taxed as capital gains in the year they occur, even though these increases are not realized until the TIPS are sold or mature. Conversely, decreases in the principal amount due to deflation can be used to offset taxable interest income.

Traditional IRA

You may be able to deduct the contribution from your income taxes, depending on participation in a workplace plan and income.

Roth IRA

You do not receive the income tax deduction. But, when you reach retirement age, you are able to take qualified withdrawals tax-free.*

Simple And SEP IRA

There are other tax-deferred retirement saving options to consider if you are self employed or a small business owner.