Your Retirement Assets Need not Be in One Bucket Only!
Real-life case studies are proven ways to get consumers’ attention, and perhaps one of the reasons is that people like to see if and how that situation applies to them. We’ll use a case study to illustrate a type of retirement savings scenario that applies to a certain segment of the population. In this instance, people who are actually on track for retirement but don’t realize it.
He told us that his retirement accounts (IRA and 401k) accounted for about $300,000. He then disclosed that he possessed cash accounts in the amount of $400,000. At his age and with his expected number of years before retirement, we recognized that Walter was very much on target for a comfortable retirement.
For some reason, he was viewing his IRA and 401k accounts as the main contributors to retirement funds. Financial planners, however, must enter all assets into the retirement planning equation. That could include cash holdings, the value of owned businesses, real estate, potential inheritances, home ownership, among others. In fact, an IRA, 401(k), or other recognized retirement program may be the wrong type of investment for some people—if you want to retire prior to age 59½, not only will a these plans be subject to tax but a 10% penalty will also be assessed.
The lesson from this case study is that it’s perfectly fine to not have your retirement funds in one bucket, like a 401k. It could be in any form of an asset. A retirement account is not even essential. Your money may accrue in other types of assets or vehicles. However, at age 52, it’s not too early to discuss retirement planning. We can evaluate your debt load, how much you are currently saving, and what you anticipate your retirement needs to be.
At Isakov Planning Group, we look at your overall financial picture, and help you plan your future based on all your assets, the amount you save, and the amount you owe. In this way, we obtain the most accurate view of your financial future. Contact us today for a free, no-obligation consultation.