Financial planning is an ongoing process of identifying financial goals, prioritizing these goals, and mapping out a comprehensive plan for achieving such goals. Within this overarching financial framework is retirement planning, which refers to the financial strategies of saving, investment, and the distribution of money that will sustain you throughout your retirement years. One of the things we do at Cinergy Financial is help educate our clients on important topics such as income analysis, 401(k) plans, IRA and Roth IRA’s, pension plan analysis, as well as qualified and non-qualified retirement options.
Let’s start with income analysis. Throughout your accumulation phase (your working years), you need to periodically conduct an income analysis to determine if you are on track to meet your retirement goals. The analysis will offer you strategies to meet your goals, understand your Social Security estimate, retirement distribution, and tax help. While it is important to periodically conduct an income analysis, it is critical to do so 5 and 10 years prior to your retirement. We help you understand 401(k) plans such as employer matching options, potentially earning a higher rate of return than a savings plan, where your funds are not subject to income tax until you withdraw them.
An important aspect of financial planning is having the knowledge and awareness of long-term savings vehicles like individual retirement accounts (IRAs). IRAs offer tax advantages that are designed to protect your retirement savings. While some IRAs are offered by your employer, you are free to open either a traditional IRA or a Roth IRA. Both the traditional and Roth IRAs offer tax advantages and we here Cinergy will guide you through the benefits and features of both. We also conduct a pension plan analysis such as the overall cost of your plan, the range of investment funds available, as well as a cost/benefit analysis of transferring your pension to an alternative plan. Finally, we help you understand long-term income options that offer you security throughout your retirement. These income options include annuities, real estate, and mutual funds.