Welcome back to Part Four of our “Back to Basics” series .. we hope you’ve enjoyed the First Three which started with all about “The Emergency Fund” in Part 1 … with Part 2 being “Protection Planning” and Part 3 discussing All about Debt Planning or “The Good the Bad and the Ugly of Debt” and now we happily bring you Part 4 Retirement Planning!
As a reminder this is a high level Financial Planning Education like overview starting with the basics of and we will continue into advanced topics in order of Planning Importance.
Retirement Planning
The most important parts of retirement planning are very easy and as follows:
- Start Early
- Save as much as you can especially when you are young as compounding is your friend, do not worry about the amount, just save!
- Don’t overthink your investment options, just allocate as available and save save save…
Starting out with a healthy savings percentage of our earnings at an early age will lead to eventual maxing out of your retirement plans, forcing you happily into other savings vehicles thereby balancing your eventual portfolio with pre-tax retirement savings and after tax buckets of investments.
Continued high percentage earnings savings will also ultimately create the habits of not living on all that you are earning. This is especially important as we get closer to retirement and create just darn good habits.
There will likely be times in our lives when we may not be able to save as much on a percentage of our earnings as we would like, but constant top of mind savings habits will garner success in the long term, don’t let life’s curve balls distract your long term savings effort, you can do it!
Early savings should be very aggressive as the corpus of your savings are the actual savings component. All equity type of investments especially during the first 5-10 years are not out of the realm of possibilities, again your continued contributions dominate the investment during these early stages. As your retirement savings and for that matter other investments grow in size adjustments are necessary especially as we near retirement.
While there are talks of optimal retirement allocations, it’s not unusual to find inferior investment options in retirement accounts. Not to worry, don’t throw your employer or your plan under the bus … the most important item in your retirement savings program is the actual deferral of your hard earned work and the broad allocation! Be aggressive in the beginning and slowing down the allocation as it matures in size and our chapter nears retirement.
Weather 401, IRA, Sep- (Simplified Employee Pension), Roth.403b. 401A or any other retirement vehicle, the vehicle is not as important as participation!.
We will help you optimize from a tax standpoint which vehicle is best. and of course with the allocations as well!
Have a Great “Retirement Planning” Day!
John A. Kvale CFA, CFP
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
Q2 2022 J.K. Financial, Inc. Newsletter … Video Audio Podcast Review ! By John Kvale CFA, CFP
Welcome to our Video and Audio Podcast Review of our Q2 2022 Newsletter. For those on the road or just unable to grab the time to read, our podcast type review gives you the behind the scenes insight to our thoughts, observations and deep views of the entire Newsletter.
BREAK IN – We are trying a new format of articles that are shorter, and hit a very wide variety of topics that should interest all ages and chapters…. Let us know what you think?
Click the Download button below, for a direct link to an electronic version (an early peek-good ole fashion paper versions are on their way to you shortly) and here for our Newsletter page
Let’s get going! We hope you enjoy!
Q 2 2022 Newsletter
(YouTube)
All about the Stimulus Base Effects and the Coming Comparable (Hurdles)
In our main article, a somewhat follow up article to our Q 1 2022 Newsletter Main Article “Anatomy of a Slowdown” we review the base effects we as an economy are about to have to hurdle.
Sale of many companies exploded higher, similar to the one below, but now must be digested..
Look Back Tax Savings – Spousal IRA – SEP – HSA , These can be done before your filing due date of April 18 to Possible Lower Your 2021 Taxes
With tax season officially underway, actually nearing an end, the official filing date for non-extension regular Form 1040 Filers is April 18th, 2022 (this year) for year 2021 tax filings, just a few weeks out. There are a few tax saving ideas that even with the turn of the calendar can be implemented to possibly help last year’s income taxes.
Self Employed Pension plan-the SEP as it’s commonly called is a great vehicle to offset income that is not of the W2 type, think consulting income.
The Spousal “Qualified IRA” is another handy tool to use if one of the spouses does not have any form of a retirement plan.
The HSA. One of the great parts of the HSA is you only need a high-deductible health insurance plan
Estate and Gift Planning Update – Annual Gifting Amount – Estate Tax Update
Annual Gift amount upped to $16k per person
Estate Tax Stands at $12.06 million per person or $22.12 million per couple
Financial Planning/Retirement Planning Trick for those Early in the Workforce – Roth contribution for young working
Helping a new worker contribute to a Roth and an early age to jumpstart a retirement program…
From the Article…
We hope you enjoy … talk to you in the summer!
John A. Kvale CFA, CFP
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
www.jkfinancialinc.com
www.street-cents.com
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Posted in Economy, General Financial Planning, Interest Rates, Investing/Financial Planning, Market Comments, Newsletters, Podcast, Retirement Planning, Tax Related, Video
Tagged 401k, CPI, Interest Rates, Newsletter, Recession, Retirement Planning, Roth, SEP, Slowdown