Understanding Your Options in Retirement

June 10, 2024

Preparing for retirement can be both exciting and overwhelming. Your Fresno financial advisor understands that with so many options available, it’s important to understand what choices are best suited to your individual needs. Whether you’re looking to travel the world or simply enjoy a relaxing lifestyle, having a clear understanding of your options is key.

Traditional retirement plans

When it comes to retirement planning, traditional retirement plans are often the first option that comes to mind. These plans are typically offered by employers and provide a defined benefit based on your years of service and salary history.

One advantage of traditional retirement plans is the tax benefits they offer. Contributions are often made on a pre-tax basis, meaning that you can lower your taxable income and potentially reduce your tax liability.

Individual retirement accounts (IRAs)

Individual retirement accounts, or IRAs, are a popular retirement savings option for individuals who do not have access to employer-sponsored plans or want more control over their investments. There are two main types of IRAs: traditional IRAs and Roth IRAs.

Traditional IRAs allow you to make tax-deductible contributions, meaning that you can lower your taxable income for the year. The funds in the account grow tax-deferred, meaning that you won’t owe taxes on the earnings until you make withdrawals in retirement.

Roth IRAs and their benefits

Roth IRAs are a popular retirement savings option for individuals who want to enjoy tax-free income in retirement. Unlike traditional IRAs, contributions to Roth IRAs are made with after-tax dollars. While you won’t receive a tax deduction for your contributions, the funds in the account grow tax-free, and qualified withdrawals in retirement are also tax-free.

One of the key benefits of Roth IRAs is the flexibility they offer. Unlike traditional IRAs, Roth IRAs do not have required minimum distributions (RMDs) during the account owner’s lifetime. This means that you can leave the funds in your Roth IRA untouched for as long as you like, allowing them to continue growing tax-free.

Annuities as a retirement option

Annuities are another retirement option that can provide a steady stream of income during retirement. An annuity is a contract between you and an insurance company, where you make a lump-sum payment or a series of payments in exchange for regular payments in the future.

There are different types of annuities, including fixed annuities and variable annuities. Fixed annuities provide a guaranteed rate of return, similar to a traditional pension plan. On the other hand, variable annuities allow you to invest your contributions in a range of investment options, which can potentially generate higher returns but also come with more risk.

Conclusion

Understanding the difference between income and net worth is crucial for achieving financial stability and long-term wealth. Your financial advisor Fresno, Ca is committed to helping you understand that while income represents the money you earn on a regular basis, net worth reflects your overall financial health by considering your assets and liabilities. By tracking your income and net worth, you can make informed financial decisions, set realistic goals, and work towards achieving financial independence.

We have a strong team of professionals helping ensure you receive all the assistance you need not only in developing your retirement income strategy, but in maintaining it throughout your retirement. Contact us today at 559-230-1648 or visit us today at Soutas Financial to get your retirement plans on track for success!

Investment advisory services offered through Foundations Investment Advisors, LLC, an SEC registered investment adviser. The commentary on this website reflects the personal opinions, viewpoints, and analyses of the author, Soutas Financial, and should not be regarded as a description of advisory services provided by Foundations Investment Advisors, LLC (“Foundations”), or performance returns of any Foundations client. The views reflected in the commentary are subject to change at any time without notice. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security, or any security. Foundations manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Foundations deems reliable any statistical data or information obtained from or prepared by third party sources that is included in any commentary, but in no way guarantees its accuracy or completeness.

BACK TO ARCHIVES

YOU HAVE A

DREAM.

LET'S MAKE A

PLAN.

CONTACT US

Phone: 559.230.1648
Fax: 559.230.1651
333 West Shaw Avenue
Suite 106
Fresno, CA 93704
Facebook Instagram Youtube
California Insurance License # OK48173
Investment advisory services offered through Foundations Investment Advisors, LLC (“Foundations”), an SEC registered investment adviser. Nothing on this website constitutes investment, legal or tax advice, or performance data. Any mention of a particular security, portfolio of securities, transaction, investment or planning strategy is not an indication that it is suitable for any specific person. Personal investment advice can only be rendered after the engagement of Foundations, execution of required documentation, and receipt of required disclosures. Investments in securities involve the risk of loss. Any past performance is no guarantee of future results. Advisory services are only offered to clients or prospective clients where Foundations and its advisors are properly licensed or exempted. For more information, please go to adviserinfo.sec.gov and search by our firm name or by our CRD #175083. Any comments regarding safe and secure investments, or Guaranteed income streams refer only to fixed insurance products. They do not in any way refer to investment advisory services offered through Foundations. Rates and Guarantees provided by insurance products and annuities are subject to the financial strength of the issuing insurance company; not guaranteed by any bank or the FDIC. This is not endorsed by the U.S. government or associated with any federal Medicare program.
Investing involves risk, including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. None of the information contained on this website shall constitute an offer to sell or solicit any offer to buy a security or any insurance product.
Neither the firm nor its agents or representatives may give tax or legal advice. Individuals should consult with a qualified professional for guidance before making any purchasing decisions.
*Any references to protection benefits or steady and reliable income streams on this website refer only to fixed insurance products. They do not refer, in any way, to securities or investment advisory products. Annuity guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company. Annuities are insurance products that may be subject to fees, surrender charges and holding periods which vary by insurance company. Annuities are not FDIC insured.
The information and opinions contained in any of the material requested from this website are provided by third parties and have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed. They are given for informational purposes only and are not a solicitation to buy or sell any of the products mentioned. The information is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation.

ADV Part 2A & Form CRS

|

Privacy Policy

|

Terms of Use

|

Sitemap