Broker Check


Retirement Planning

When it comes to retirement planning, there are a lot of things to consider. One of the most important is how much money you'll need saved up in order to cover your costs. There are a number of ways to calculate this, but one common approach is to estimate that you'll need 70% of your current income in retirement. This includes housing, food, transportation, and healthcare costs. 

Another important factor to consider in retirement planning is your living situation. Will you downsize? Move to a cheaper location? Or perhaps you'll want to move closer to family or to a location that you've always wanted to live. It's important to think about these things in advance so that you can make the necessary preparations. 

Retirement planning can seem like a daunting task, but it's important to start early and to have a plan. Working with a certified financial planner professional (CFP©) can be a great way to ensure that you're on track for a successful retirement. David Newbill is a CFP© and CPA with decades of experience providing financial guidance to his clients.

Individual Retirement Accounts

When it comes to retirement planning, there are a lot of options to choose from. One of the most popular is the Roth IRA, which allows you to contribute after-tax dollars but your withdrawals in retirement are tax-free. Other types of IRAs include the Traditional IRA, SEP IRA and SIMPLE IRA. 

Roth IRA

The Roth IRA is one of the most popular retirement savings options. Roth IRAs offer tax-free growth and tax-free withdrawals in retirement, which can make them a great choice for investors.

Traditional IRA

The Traditional IRA is another popular retirement savings option. Traditional IRAs offer tax-deferred growth and tax-deductible contributions, which can make them a great choice for investors.

SEP IRA

The SEP IRA is a retirement savings option for small businesses and self-employed individuals. SEP IRAs offer tax-deferred growth and tax-deductible contributions, which can make them a great choice for retirement savings. SEP IRAs also have some flexibility when it comes to contributions, which can be helpful for small businesses with fluctuating income. If you're self-employed or own a small business, a SEP IRA can be a great retirement savings option for you.

There are a number of things to consider when choosing which IRA is right for you. Here are a few key factors:

-Your current income and tax bracket

-The amount of money you want to contribute

-Your retirement goals

Distribution Strategies

When it comes to retirement distribution strategies, there are a few different options to consider. You can take your money out all at once in what's known as a lump sum, or you can spread it out over time in what's called an annuity. You can also choose a hybrid of the two options, or do something completely different altogether. No matter what you decide to do, distribution strategies are an important part of the retirement planning process.

Frequently Asked Questions

Q: How much money do I need to retire?

A: In order to retire, you'll need to have saved up enough money to cover your living costs. The amount of money you'll need varies depending on your lifestyle and other factors, but a common rule of thumb is to estimate that you'll need 70% of your current income in retirement. 


Q: What is the best way to save for retirement?

A: The best way to save for retirement is by contributing to a 401k or other employer-sponsored retirement plan. These plans allow you to save money on a pre-tax basis, which can help you save more for retirement. Additionally, many employer-sponsored retirement plans offer matching contributions from your employer, which can further boost your retirement savings. Other ways to save for retirement include contributing to an IRA or other investment account.


Q: When is the best time to retire?

A: There is no one-size-fits-all answer to this question, as the best time to retire depends on your individual circumstances. However, a general rule of thumb is to retire when you have enough saved up to cover your living expenses for at least 10-15 years. Additionally, it's important to consider when you'll be eligible for Social Security benefits and whether you're comfortable with the idea of working during retirement. 


Q: How can I make my retirement savings last?

A: Retirement planning is essential to ensuring your savings last as long as you do. One way to make your retirement savings last is to be mindful of your spending and only withdraw the amount you need each year. Additionally, it's important to invest your retirement savings wisely and to diversify your investments to protect against market volatility. Finally, you may also want to consider working part-time during retirement to supplement your income.

Conclusion

Retirement planning can seem daunting, but with the help of a certified financial planner, it doesn't have to be. Contact David Newbill with Circle of Life© Financial Planning to begin planning for your ideal retirement today!

For more information about our firm and the services we offer, send us a quick email or call the office. We would welcome the opportunity to speak with you.

david.newbill@cambridgesecure.com   |  810-239-8825