Get Up to Speed on Retirement: Essential Steps for Financial Security

Are you ready for retirement? Learn how to navigate pension options, 401(k) decisions, and personal savings strategies for long-term financial security. Miguel Gonzalez, CRC, breaks down the key steps you need to take.

Cortburg Retirement Advisors is a boutique financial planning firm committed to helping you grow, protect, and preserve your assets from your first job to retirement. We specialize in wealth management, estate and tax planning, group retirement, employee benefits, insurance, and retirement planning to navigate any economic climate.

Miguel Gonzalez, a Retirement Specialist with 20+ years of experience, offers expertise in retirement income planning, investment management, and retirement plan design. With an MBA from Columbia Business School, and professional experience with JP Morgan Chase, Merrill Lynch, and more, Miguel is a trusted advisor for his clients.

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#FinancialSecurity #RetirementDecisions #RetirementAdvice #PersonalFinance #FinancialFreedom #MoneyManagement #RetirementFunds #WealthManagement #RetirementReady #RetirementOptions

Welcome to Cortburg Speaks Retirement Podcast
with Miguel Gonzalez, MBA, AIF®, CPFA®, CRC®

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Transcript

Welcome to Cortburg Speaks Retirement

An audio podcast about investing in the stock market, financial planning, money management and retirement planning.  Each Wednesday, we help investors at all stages of life learn how to potentially grow and preserve their money from first job through retirement.

Now here is your host, Miguel Gonzalez.

 HOST

Good morning and welcome to the CORTBURG SPEAKS RETIREMENT audio podcast.   

This week, we’re breaking down the key decisions you'll face as you approach retirement.

As you near retirement age, many important decisions await you. 

If you have a qualified employer-sponsored retirement plan, whether it is a traditional pension or defined contribution plan, such as a 401(k), you will have to decide how to manage the plan’s proceeds once you retire. 

Your choice may depend on the following considerations: your current financial situation and your projected income requirements; the health and life expectancy of you and your spouse; the anticipated inflation rate; and federal and state taxes.

Pension Payout Options

If you have a company pension plan, you will need to make some decisions about how you wish to receive your pension proceeds when you retire. Generally, you will be given the choice between receiving an income for the rest of your life (single life option), receiving an income for the life of you and your spouse (joint and survivorship option), or receiving a lump-sum distribution.

Each option has potential advantages and disadvantages. For instance, a single life option may pay a higher income than a joint and survivorship option. However, if you take the single payout option, income will cease upon your death, but with the joint and survivorship option, payments continue for the life of both you and your spouse. With both payout options, you exchange your pension balance for periodic payments.

If you prefer to maintain control over your pension assets during retirement, you might consider taking a lump-sum distribution. You can choose to receive the pension proceeds net of income taxes or roll them over into a traditional Individual Retirement Account (IRA), where they can continue to grow on a tax-deferred basis. Either choice with the lump-sum distribution allows you to actively manage your own retirement assets.

Defined Contribution Plan Proceeds

If you are a participant in an employer-sponsored defined contribution plan, such as a 401(k), you must begin taking required minimum distributions (RMDs) by age 72. Depending on the rules of your company plan, you may also have the option of taking a lump-sum withdrawal net of income taxes or rolling over the proceeds into an IRA. Either of these options requires you to actively manage your retirement assets, and there may be tax consequences. Be sure to consult with a tax professional for guidance to help you develop savings goals consistent with your objectives.

Shortfall Planning

For many individuals, retirement plan assets and Social Security alone will not meet retirement income needs. Therefore, personal savings are important to long-term success. Before you begin your personal savings program, you may want to consider maximizing your allowable contributions to a tax-advantaged, employer-sponsored retirement plan.

Since there are a number of choices available and decisions to be made regarding the funding and distribution of your retirement income, it is important to regularly re-evaluate your financial strategies for reaching your goals. If you need help deciding which strategies are most suitable for your unique circumstances, speak to a financial professional for guidance. Remember, it’s never too early to start saving for tomorrow.

Make sure to visit our website, www.CortburgRetirement.com. Our site is filled with educational videos, eBooks, publications, and financial calculators designed to help you learn more about your finances.  As you search our site, send us a note regarding any questions you may have about any particular investment concepts or products. We will get back to you quickly with a thoughtful answer.

This is Miguel Gonzalez, Certified Retirement Counselor (CRC) and Managing Partner, with Cortburg Retirement Advisors signing off for this week’s educational podcast.