Pursue Higher Retirement Income & Lower Taxes
I don’t want a higher income or to reduce my tax bill. – Said no one ever.
Saving for retirement, managing investments, and undertaking financial planning strategies are all just a means to an end . . . having a pile of money big enough to support your lifestyle when you’re not working and to try to not shoot yourself in the foot by handing over more than your fair share to Uncle Sam.
Signing up to contribute to a 401k and letting it ride is a typical behavior for individuals. The focus tends to be just on accumulating money in a work-sponsored retirement plan. However, when it comes to creating an income from investments in order to quit your job, things get more complicated. This is where we come in to try to help individuals access investments and strategies that pursue the goals of increasing their retirement income and reducing their taxes.
401k plans are not only limited to the different types of investments that are available but employers have been reducing the number of choices in order to simplify the menu to increase the employee participation rate. Studies have shown that plans that have a higher number of investment choices tend to confuse employees and the result is a lower participation rate.1 Plans that reduce the number of choices might lead to an improvement in participation rates at companies, but do you want to personally be stuck with a limited menu? (And remember, company retirement plans are geared for the typical employee – and studies have shown that the median account balance in 401k plans is only around $26,000.2)
We provide investment and financial planning strategies that pursue the goals of increased retirement income and reduced taxes. Unfortunately, it is not uncommon for individuals nearing retirement that have around a million dollars or more saved to still be cutting it close in terms of maintaining their lifestyle throughout retirement after they stop receiving a paycheck. If looking into ideas that might be able to allow you to pursue more retirement cash flow and lower tax payments sounds worthwhile, please give us a call or send us an email to learn about our proprietary financial planning program that we’ve developed to pursue these goals. 816-531-4555 info@ryanpoage.com
1.AllianceBernstein “Implications of Participant Behavior for Plan Design”
2.Vanguard “How America Saves” 2020 report