Financial Planning in Gulfport, MS

How does one prepare for a long term, rewarding and financially secure retirement? 

It may seem virtually impossible to tuck away enough money for your golden years given perhaps your limited income and never-ending expenses. A fact that is supported by a recent survey showing more than a third of people in the U.S.A have nothing saved for their best years of life.

"Retirement is an extremely fluid process requiring adjustments and committed planning during both the accumulation and distribution periods. Since there can be multiple income generating plans it’s important that you’re completely aware of how your income after retirement is to distribute all the way until your death," says Dennis Mayfield, Chief Executive Officer for Mayfield & Associates, LLC a risk management and insurance brokerage. There are many variables that apply from your health, how long you'll live, how the markets or other investments will perform to perhaps the most important truth, how is your tax planning accomplished.

Fortunately there are steps you can take to have a more financially secure future. Instead of focusing on what you can't control, says Mayfield, focus on what you can control. These things include your current spending, your accumulation and savings rate along with how your assets are allocated.

The best recipe for success is to start early, saving and selecting your investments wisely, says Mayfield. Having a retirement and financial planning consultant is a must today due to the multitude of options in the marketplace today.

Here are a few ideas for better preparation for a secure retirement:

• Save appropriate amounts.

You should save 10% to 13% of your gross income for retirement. This includes your employer match so, if you're getting a 3% employer match, you need to save 7% to 10% of your gross pay based on an individual starting before 30.

• Reduce spending.

Most individuals can review their spending and find ways to cut items they really don't need or care about, putting that money toward retirement.

Begin with a detailed list of your line-item expenditures so you can pick out four or five things that are not essential. Here are a few ideas: Cut back on specialty coffees, adjust your thermostat to reduce energy costs, cut out your home phone, stop buying lunch out every day.

• Invest wisely.

Assess your tolerance for risk and invest your savings in ways that are appropriate for you not discounting the high value of permanent Life insurance. Some policies now provide Critical, Chronic and Long-Term coverage that when purchased earlier is dramatically less expense and permits more of your money to go toward wealth accumulation that can be tax-free.

• Speak with an expert.

With all that is going on in the marketplace don’t just throw your money at something a family member or associate is doing that promises opportunity for better than average returns. Consider both short and long term goals and get sound-advice whenever possible utilizing a long term approach. 

• Take full advantage of tax-deferred accounts.

If your objective is to defer current income taxes should you consider contributions into a 401(k), 403(b), or 457 annuities or traditional IRAs that are not subject to current levels of income tax. Maximize your contributions into indexed financial tools if your objective is to create tax-free income that with income riders can pay until your death instead of when you funds run out.

Some folks, such as people who currently pay low taxes or those whom expect tax rates to increase, may be better off investing in a Roth IRA or the Roth component of a 401(k) or 401(b) or Indexed Life Insurance.

•Evaluate health care coverage and medical services.

Make sure you have adequate coverage. "Even when you become eligible for Medicare, you will likely need a supplemental policy to cover what Medicare does not."

• Research housing options.

For many people, their homes become even more important in retirement because they spend much more time there, so it's important to think about this in advance. Most people would prefer to age in place, a fact that is driven largely by family, church or community ties.

When your planning is done well, you’ll have more flexibility when the time comes to select the place that on average Americans spend slightly more than three years of their lives in before death. This way the expense is planned out and therefore potentially a less expensive option. Understand that there is tremendous variability in living costs, property/real estate taxes, overall living expense and how long folks live. It is most important to get prepared and make your retirement stash last longer.

If you’re closer to retirement start researching retirement communities that have medical services and long-term care built into the environment.

• Start planning when you’re going to take Social Security.

Drawing your Social Security early at 62 cost’s you over 32% of your income during retirement. 

You can begin receipt of your SS income anytime between the ages of 62 to 70. If you take it at age 62, you get 25% less than you would if you waited until your full retirement age.

(If you were born between Jan. 2, 1943, and Jan. 1, 1955, your full retirement age is 66.)

However, waiting until 70 to begin distribution maximizes your income potential more than 32%. So when possible it is best (when possible) to file at 66 and defer distribution until 70 virtually doubling between ages 62 and 70.  

Steps to a financially secure retirement in Gulfport, Biloxi, Long Beach, Ocean Springs, Hattiesburg, Jackson & Pascagoula, Mississippi as well as Texas, Louisiana, Alabama, Tennessee & Florida.