Fresno Financial Advisor News: How To Help Maximize Social Security Benefits

Gone are the days when employees worked for decades for one employer and received a decent pension and Social Security to fund a comfortable retirement. Retirement investing is now a consumer’s responsibility. Ultimately, financial decisions made during your life determine your retirement lifestyle. David Thomas, CEO at Equitas Capital Advisors in New Orleans, says, “From the World War II generation to the baby boomers, we saw the shift from Social Security to self-security. The problem is that all too few are providing for their self-security, and the ones that do are not doing enough.” Workers who depend solely on Social Security for their retirement face a challenge.

Most savers take an on-again, off-again approach to putting money away. They contribute what they can, when they can, and hope for the best. But consistent saving gets the best results, new research shows. This points up the value of strategies like automatic contributions and paying yourself first.

Putting all retirement savings in IRAs and 401(k)s

Investors enjoy the tax-deferral benefits of retirement accounts. But there’s no avoiding the tax man forever. Without additional funds, outside of a retirement account, a retiree withdrawing from a 401(k) is forced to pay taxes on that withdrawal with money from the account. “A better accumulation strategy would be to split savings into both pretax IRA, 401(k) plans and post-tax savings like a brokerage account invested in low-fee exchange-traded funds,” says Martin E. Levine, a chief financial officer at 4Thought Financial Group. That way, investors can increase the retirement account tax-deferral benefits by withdrawing funds at a slower pace.

Investing only in stocks and bonds

Real estate investment trust, known as REITs, and other real estate investments offer another diversification benefit to current retirees and those in the accumulation phase. “The Jobs Act of 2012 changed the game for many investors, opening new doors to diversify their portfolios with more real estate options rather than sticking strictly to stocks and bonds,” said Adam Hooper, CEO and founder of RealCrowd, a crowdfunding commercial real estate firm in Oregon. Real estate investment also tends to be less volatile than the stock market acting as a stabilizer within a portfolio with a strong opportunity for returns, Hooper adds.

Waiting too late to begin retirement saving

With all of the conversation surrounding returns, the most important factor in wealth accumulation is time. An investor who contributes $6,300 per year from age 25 to age 65 and earns 7% annually on the investment can retire with almost a $1.4 million nest egg. In contrast, an investor who starts investing $6,300 per year at age 40 and earns an average 7% annually will only reach $428,000 in savings by age 65. The first investor’s contributions grew nearly five times. This investor contributed a total of $252,000 for 40 years to yield a $1.4 million investment portfolio. While the second investor contributed a total of $157,000 to equal $428,000 at age 65.

Saving through thick and thin over a long period works. Most 401(k) plans make it easy through automatic enrollment, automatic pre-tax contributions and automatic escalation of contributions each year. Don’t opt out. If these features are not available in your plan you can approximate the strategy with automatic contributions to an IRA. In this long-term game, consistency makes the difference.

Fresno Financial Planner Takeaways 

As your Fresno financial advisor we thought this was a good takeaway: Avoid taking an on-again, off-again money saving strategy. It is a far better idea to remain consistent. Investors enjoy the tax-deferral benefits of retirement accounts. eal estate investment trust, known as REITs, and other real estate investments offer another diversification benefit to current retirees and those in the accumulation phase. And don’t wait too late to begin your retirement savings.

Diversifying your retirement assets among a variety of vehicles and alternatives—both insurance and investment oriented, depending on what is appropriate for your situation—may offer you a better chance of meeting your retirement income goals throughout your lifespan. We help our clients with problems sometimes associated with retirement such as stopping spend down and avoiding probate. In doing so we leverage Medicare long term care as well as risk management designed to help accomplish those goals.

When searching for Fresno financial advisors, look no further than Soutas Financial & Insurance Solutions Inc. your Fresno portfolio advisor is committed to helping take the complexity out of retirement planning. By using a variety of insurance and investment strategies that focus on Asset Protection, Long-Term Care Strategies, Legacy Planning Tax-Efficient Strategies, IRA, 401(k) & 403(b) Rollovers, Life Insurance, Annuities, Medicare, we can help you develop an overall retirement income strategy specific to you and your family. 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 only by duly registered individuals through AE Wealth Management, LLC (AEWM). AEWM and Soutas Financial & Insurance Solutions, Inc. are not affiliated companies. California Insurance License # OK48173

Other Fresno Financial Advisor Articles 

Soutas Financial & Insurance Solutions Inc. 
333 W. Shaw Avenue Suite 106
Fresno, CA 93704 
(559) 230-1648 
Soutas.com 

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We are an independent firm helping individuals create retirement strategies using a variety of insurance products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic retirement income strategies and should not be construed as financial advice.

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