Saving for retirement is important. It is an investment in your future. That’s why Olympia Federal Savings partners with financial advisors to help you take a look at your plans for retirement. Jason Andrew is a financial advisor who offers investment products through Cetera Investment Services LLC*. Andrew collaborates with Olympia Federal Savings, to help customers get sound financial advice on investments for their future.
Every person is different. They all have unique dreams and there are many different options to help them work towards those dreams, so it helps to have a good advisor. “I like to know what my client’s goals are, what they are trying to accomplish with their investment funds,” says Andrew. “Then I can give them information on what types of accounts will be most suitable for them.”
Andrew asks his clients a few questions before they start working on a financial plan that will fit them. Take a look at the questions below to see how you are progressing with the basics when it comes to retirement savings:
Do You Have an Employer Sponsored Plan?
Don’t miss out on free money. For the most part, traditional pensions have gone the way of the dinosaur. However, many employers still offer matching retirement investment plans. If you have a matching plan, it is very important to contribute to receive the maximum match.
Do You Have Savings Set Aside?
It’s important to have three to six months of living expenses saved for an emergency. Having a cushion to protect you from unforeseen troubles like job loss or other hardships is important. If you have to pull out money from your retirement plan, you will likely face stiff penalties.
Have You Started a Roth IRA?
Though there are some income exclusions and qualifications, Roth IRAs are taxed at today’s rate, in the investor’s current tax bracket, which is usually much lower than later in life once they’ve accumulated wealth.
Weighing Risk and Reward
Certificate of Deposits (CDs) can be a great option for those that are risk averse and want to ensure that they protect their principle, however, the rate of return on CDs is much lower than other options like stocks, bonds and mutual funds.
No matter what you invest in, keep an eye on the administrative costs or other expenses and be aware of how much your investments are costing you.
Building the Nest Egg
“Pay yourself first,” says Andrew. Setting up automatic deposits routed into your retirement plans can be a useful strategy for making regular investments without the temptation to skip contributions or the pitfall of forgetting when life gets busy. If you are trying to meet your IRA contribution limit, consider adding funds from bonuses or part of your income tax return.
“Start early with retirement investments,” says Andrew. “Compound interest is a powerful thing.” The earlier you begin investing, the longer you have to both build up your investments and see potentially a good return on them. Until age 50, the annual contribution limit for 2018 is $5,500 and $6,000 for 2019 for Roth and Traditional IRAs. For those age 50 or older, the IRS allows an additional $1,000 annually in catch up contributions to Roth and Traditional IRAs.
For more information or to set up an appointment to talk with Jason Andrew about the many different options available for retirement investments, call 360- 596-9788 or email firstname.lastname@example.org.
*To qualify for the tax-free and penalty-free withdrawal or earnings, a Roth IRA must be in place for at least five tax years, and the distribution must take place after age 59 ½ or due to death, disability, or a first time home purchase (up to a $10,000 lifetime maximum). Depending on state law, Roth IRA distributions may be subject to state taxes. For a comprehensive review of your personal situation, always consult with a tax or legal advisor. Neither Cetera Investment Services LLC nor any of its representatives may give legal or tax advice. A diversified portfolio does not assure a profit or protect against loss in a declining market. Investing in mutual funds is subject to risk and loss of principal. There is no assurance or certainty that any investment strategy will be successful in meeting its objectives.
** Securities and insurance products are offered through Cetera Investment Services LLC (doing insurance business in CA as CFGIS Insurance Agency), member FINRA/SIPC. Advisory services are offered through Cetera Investment Advisers LLC. Neither firm is affiliated with the financial institution where investment services are offered. Advisory services are only offered by Investment Adviser Representatives. Investments are: *Not FDIC/NCUSIF insured *May lose value *Not financial institution guaranteed *Not a deposit *Not insured by any federal government agency. Located at: 4310 6th Ave SE, Lacey, WA 98503 (360) 459-1156.