Retirement Plan Update Mentor
Oneof the methods of managing risks in life is savings it isrecommended that a person should save some portion of the income forexpenditures after retirement. However, choosing the best method orplans of the savings is the hardest step as people have to seekfinancial analysis and guidance. In the essay we discuss the findingsfrom a survey conducted on financial planners, to determine the bestretirement plan for a client.
Threefinancial planners, who were contacted earlier, accepted the offerand gave their opinions, feedback, and financial analysis. Thefindings are discussed below
DavidW. Thiel from Thrivent Financial (Thiel, n.d.)
Hisopinion was for the client to consider the Traditional IRA individualretirement accounts. Based on the age and the investment portfolio,the traditional IRA`s deductible contributions shall lower the taxburden and allow yearly withdrawals from the age of 70.5. David`sfeedback was that when selecting a retirement plan, one must keenlyconsider the tax aspects and the earnings. The traditional IRA`searnings grow without any taxes, and the investment income isdeferred. Financially, he argued that with the lump sum amount of $1million, the client will acquire $3 million within the 23 year periodat a rate of 5%.
JoshuaLamers from Silver State Educators Insurance & Financial ServicesLLC
Hisopinion was that the client should consider Roth IRA, which hasnon-deductible contributions and withdraw at any time. Thewithdrawals are also untaxed, and the client thus receives the exactamount. However, Early withdrawals may attract a tax of 10%. Financially, he suggested that the client should contribute the lumpsum payment in phases and with different companies to earn variedinterest.
RickTidwell from LPL Financial (Tidwell, n.d.)
Rick`sopinion was for the Spousal IRA, in this case, either traditional IRA or Roth IRA, which fully allows funding from either spouse. Thebeneficiary is a non-working spouse, which fits the client`s retiredstatus. His feedback was that, based on the selected plan, anonworking spouse would earn tax-advantages retirement savings.Therefore, the plan is the most preferred as the client`s spouse canas well benefit the savings.
Conclusively,the research found out that there are three types of retirement planswith different features and benefits. There is the Traditional IRA,the Roth IRA, and Spouse IRA. Spouse IRA has both the features of theother two. The primary task is the analysis and selection of the bestplan, which according to the report may be Spouse IRA.
Lamers,J. (n.d.). Retrieved from https://agents.horacemann.com/JoshuaLamers
Thiel,D. (n.d.). Retrieved from https://connect.thrivent.com/david-thiel
Tidwell,R. (n.d.). Retrieved fromhttp://www.strategicwealthmgt.com/new/strategicwealthmgt/content.asp?contentid=2016744659
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