Financial Planning Education

Long-Term Financial Planning

Long-term financial planning is the most important exercise you can do to increase the likelihood that your retirement will be secure and satisfying. Many people spend more time planning their two week vacation than planning for retirement.

Security National Bank Wealth Management advisors use a tool that will help you take the first step to improving the quality of your life, as well as the lives of those you care about.

We Have a STEP-by-Step PROCESS THAT WILL HELP YOU:

Prioritize your goals before and during retirement
Assess your risk tolerance
Identify resources available to fund your goals and living requirements
Create a financial plan that will help you reach your life goals

After working with Jessica Ross, MBA, you will also receive a summary that will give you insight to your financial situation, including:

How long will your resources last?
Will you be able to meet or exceed your lifestyle goals?
When can you afford to retire?
How should your portfolio be customized to reach your various goals?
What is your probability of success?
How can you maximize the transfer of wealth to the next generation?

Call Jessica Ross at (712) 277-6610 or 1-800-475-4468, or email her at jross@snbonline.com to set up an appointment to start planning your future today.

TRADITIONAL IRA VS. ROTH IRA: WHICH ONE IS FOR YOU?

Individual Retirement Accounts, or IRAs, offer people an opportunity to save for retirement outside of employer-sponsored 401ks and self-employed SEPs.

Both traditional IRAs and Roth IRAs offer tax advantages and tax-free growth on the dividends or capital gains the investments earn. Both are also bound by the same contribution deadline and contribution limits.

There are also some drastic differences between the two IRAs, and these differences may help you decide which IRA is best for you.

WHAT ARE THE ADVANTAGES OF THE ROTH IRA?

Roth IRA contributions are made with after-tax dollars
Tax-free income and asset growth (when the five-year holding period is met), coming in future years when most expect that tax rates will be going up sharply
The Ability to hold on to assets longer because there are no required minimum distributions during retirement
Simplification of inheritance issues for heirs
Lower death taxes for those families subject to estate or inheritance tax.

WHAT ARE THE ADVANTAGES OF A TRADITIONAL IRA?

Traditional IRAs are funded with pre-tax dollars
Eligibility to deduct contributions for a tax break in the year you make the contribution (if certain requirements are met)
Traditional IRAs may be a better choice if your tax rate will be lower in retirement than it is while you are contributing
No income cap. You can contribute to a traditional IRA no matter how much money you make, up until you reach the age of 70 1/2.

A ROTH IRA IS A GOOD IDEA IF…

You need flexibility. Roth IRAs offer several early withdrawal opportunities, including the ability to withdraw up to $10,000 toward a home or pay for college expenses
You want to keep contributing. Roth IRAs allow you to contribute to your account for as long as you want, as long as you meet the income requirements
You’re not sure you’ll need the money until much later in retirement (after age 70.5)
You know your tax bracket is climbing. If you think you’re going to be in a higher tax bracket in retirement than you are right now, it’s better to pay the taxes at the lower rate and invest them tax-free.

*Always talk to your tax professional before making investment decisions that could affect both your present and future finances. Have more questions?

A TRADITIONAL IRA IS A GOOD IDEA IF…

You want to reduce your taxable income at present. By contributing to a Traditional IRA, you can lower your taxable income to the point that makes you eligible for other tax incentives
You want to roll. Traditional IRAs make easy—and painless—work of changing a former employer-sponsored 401k into an IRA without paying income taxes on the amount.
You expect your taxable income to decrease when you retire. Remember, your income doesn’t have to change for your taxable income to increase. As your dependents age out and other deductions disappear, you may find yourself in a different tax bracket, even if you haven’t gotten a raise in a while.