According to Time Magazine, 1 in 3 Americans has saved $0 for retirement and is generally unprepared to sustain their livelihoods once they leave the workforce. At Howard Freedman & Co., we know the importance of planning for the future and want to share with you 5 of the most important things to understand about retirement and financial planning.
1. Social security collection has rules: There are rules regarding the collection of social security, depending upon your desired retirement age, how much money you can earn until retirement without being penalized by Social Security.
2. Your assets need to outlive you: Social security will rarely provide enough retirement income to satisfy paying your living expenses once you retire. It is best to withdraw approximately 4% of your total portfolio of retirement assets each year to be conservative and not run out of crucial funds. (Don’t have a portfolio? We can help!)
3. Budget wisely: Make a budget of your income from all sources and your anticipated expenses. To be safe, consider adding reasonable amounts for unexpected expenses such as health care and travel and then live within this budget.
4. Engage with a tax advisor: Reevaluate your expenses and have your tax advisor prepare a tax projection for you to understand your tax liabilities.
5. Think long term: Prepare a long term financial goal summary (soon!) with your wealth advisor to thoroughly understand your situation.
Retirement planning can be overwhelming. There are rules, regulations, speculation and planning that takes years to properly complete. We understand how daunting a task retirement planning can be and want to help you reach your financial goals. Questions? Want help planning for your financial future? Call us at (516)781-9409.
We have been asked more times than we can count if hiring a CPA is a worthy investment for business owners. "Can't I just use TurboTax?" "Why pay for something I can do myself, when I have the extra time?"
CPA's naturally cringe when hearing business owners say this. We wonder if you would also create your own website from scratch, in your spare time and without any formal training? Nope! Do business owners have a lot of free time to learn the nuances, details and minutae of the tax code? Not from what we've heard. Are you part of any professional organizations that cater to CPAs and update accountants of upcoming changes? Probably not. So why put extra pressure on yourself and your business when you could hire an accountant to do these things for you?
If you won't take our word for it, you should take into consideration these tips from the American Institute of CPAs: Is hiring a CPA worth it? 5 Tips for getting your money's worth.
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