Jun 28

The Open Architecture Solo 401k Plan Rollover Solution for The Self-Employed or Small Business Owner

Rolling over IRA or 401(k) Plan funds to a self-directed solo 401(k) Plan can now be done without tax or penalty

IRA Financial Group, the leading provider of self-directed Solo 401(k) Plan solutions announces the open architecture Self-Directed Solo 401K plan solution the self-employed or small business owner. The open architecture solo 401k plan rollover solution allows retirement investors to rollover their pre-tax and after-tax retirement funds into a self-directed solo 401(k) plan “Our open architecture solo 401(k) plan Rollover solution allow retirement investors to roll over their retirement funds tax and penalty free into a self-directed solo 401(k) plan, “stated Adam Bergman, a tax attorney with the IRA Financial Group.

Individuals may generally roll over their retirement savings between IRA and 401(k) qualified retirement plans without tax or penalty. Individuals may roll over only the pre-tax assets from a pre-tax IRA, such as a Traditional IRA, SEP, or SIMPLE IRA to an Individual 401k Plan. After tax assets, such as a Roth IRA may not be rolled over to a solo 401(k) Plan.

Our open architecture solo 401(k) plan Rollover solution allow retirement investors to roll over their retirement funds tax and penalty free into a self-directed solo 401(k) planIRA Financial Group, the leading Solo 401K provider, plan is unique and so popular because it is designed explicitly for small, owner only business. The Solo 401(k) Plan can be opened at any local bank and requires very little administration. An IRA Financial Group Solo 401K Plan offers a self employed business owner the ability to use his or her retirement funds to make almost any type of investment, including real estate, tax liens, private businesses, precious metals, and foreign currency on their own without requiring custodian consent tax-free! In addition, a Solo 401K Plan will allow one to make high contribution limits (up to $56,500) as well as borrow up to $50,000 for any purpose. “IRA Financial group’s Solo 401(k) Plan can be funded by a tax-free rollover of IRA, 401(k), 403(b), or 457(b) funds as well as annual contributions,” stated Mr. Bergman.

The IRA Financial Group was founded by a group of top law firm tax and ERISA lawyers who have worked at some of the largest law firms in the United States, such as White & Case LLP, Dewey & LeBoeuf LLP, and Thelen LLP.

IRA Financial Group is the market’s leading “checkbook control” Self Directed IRA Facilitator. IRA Financial Group has helped thousands of clients take back control over their retirement funds while gaining the ability to invest in almost any type of investment, including real estate without custodian consent.

To learn more about the IRA Financial Group please visit our website at http://www.irafinancialgroup.com or call 800-472-0646.

Jun 27

The Forgotten 401k Rollover Option

When you switch jobs, do you know your options when it comes to your 401k plan?  Hopefully, you don’t take out the money and go on a shopping spree.  That’s the worst thing you can do with your old plan.  This results in higher taxes, penalties and lost investment opportunities.  There are more suitable options to do with your old 401k, one of which is seldom talked about.

The three main options are as follows.  First, you can take the assets in your old plan and roll it over into an IRA.  This is one of the widely pushed moves out there.  Next, you can leave the plan as is with your former employer assuming you meet the minimum account balance (typically $5,000).  Lastly, you can transfer the money from your old plan into your new employer’s plan (assuming there is one).

When leaving a job, know your options for your old 401kA Government Accountability Office (GAO) study found that there is a tendency to push former employees to IRAs.  IRA providers are aggressive in their approach to gain rollover business.  The study shows that nine in ten providers advertise that they can assist workers looking to roll over their old 401k assets.  Further, many of them will offer bonuses as much as $2,500 to get these plan assets.

While this is a great option for many people, it may not be the best move for you.  The GAO study reports that one plan sponsor showed only about 10-15% of people transferring his/her old plan into his/her new plan.  Since there’s paperwork to do on both ends (your old and new job), workers found it a bit intimidating to try to move their old assets into their new employer’s plan.  For some people, however, this option may make the most sense.

One of the biggest factors when choosing a retirement plan is the cost (of course!).  Typically, 401k plans charge higher fees than most IRA providers.  But if you have a low cost 401k already, it doesn’t make sense to roll over to an IRA.  “Many employers foot the bill for administrative and record keeping fees and offer low-cost institutional-class mutual funds among their investment choices, providing annual savings over the mutual fund shares more readily accessible to ordinary investors,” says DailyFinance.com’s Dan Caplinger.

Moreover, most people do not fully understand investing and tax laws (or have the time to “invest” in it).  Therefore, having a plan administrator do all the leg work is usually a good thing (although we know it’s not always the case).  Plus, many employers pay administrative and record keeping costs as well.  Lastly, you might have investment options only available to the larger plans such as low cost institutional-class mutual funds not available to the single investor.

In closing, don’t just opt for the normal route when it comes to your retirement.  What’s good for someone else, might not be so good for you.  If you have any questions, contact one of the tax experts at the IRA Financial Group today!

Jun 26

Funding a Small Business or Franchise with Your Retirement Savings

“The Entrepreneurial Solution for Business Financing”

Our dismal economy has left many individuals without jobs due to layoffs, downsizing, corporate bankruptcies and myriad other unhappy events. Even the companies that are hiring have the advantage of choosing from an extremely wide range of qualified candidates resulting in lower wages and salaries. Economic projections for 2011, suggest that 1 in 10 workers in the U.S. will be without a job. With these limited options, many individuals are leaving the uncertainty of the job market and going out on their own and becoming entrepreneurs.

Many economists, including a recent Nobel Prize winner for economics, have said, “It could take as long as 15 years for families to recover to their pre-recession wealth.” Whatever your situation, it’s highly probable that you don’t have that kind of time on your side. As the job losses continue to pile up each month, economists speculate that job losses for this year (2011) will continue across many regions and business segments. Even those industries that are recovering will be severely restrained when it comes to hiring new employees thanks to higher taxes and proposed legislation.

IRA Financial Group’s IRA LLC & Solo 401(k)

“The Entrepreneurial Solution”

Financing Your Franchise with IRA Financial Group’s Solo 401(k) PlansIf you’ve ever said, “If I could do it over again, I’d be my own boss” then this may be the ideal time to consider your options and opportunities. At IRA Financial Group, we specialize in helping entrepreneurs obtain small business capital to get them started. With the IRA Financial Group’s IRA LLC and Solo 401(k), we can assist you in funding your existing or new business through your qualified retirement assets.

The IRA Financial Group Self-Directed IRA Plans allows entrepreneurs to access their 401(k), IRA, SEP or other retirement holdings and invest it in a new or existing business. Let’s be clear, this is an investment, not a withdrawal. This means that there are no early-withdrawal taxes or penalties; it’s a retirement plan that invests in the ownership of a new or existing company. Similar to if you were going to buy shares in Wal-Mart or Target.

Financing Your Franchise with IRA Financial Group’s Solo 401(k) Plans

Hundreds of new franchise owners and entrepreneurs have used our IRA Financial Group’s Solo 401(k)’s to purchase or recapitalize their business. By simply rolling your existing IRA or 401(k) funds into one of IRA Financial Group’s Solo 401(k) Plans, you can invest in a new business or fund an existing business… without tax penalties.

The IRA Financial Group’s IRA LLC & Solo 401(k) plans allow you to:

  • Use funds from retirement accounts like IRAs, 401(k)s, SEPs, etc., without incurring early distribution taxes or penalties
  • Take advantage of tax compliant structures that have already been approved by the Internal Revenue Service
  • Utilize pre-tax dollars to fund or invest in a business
  • Obtain funding fast using your retirement funds to help finance your business
  • Utilize the retirement funds of a sibling, cousin, or friend to help finance your business
  • Solo 401(k) Participants can borrow up to $51,000 (for 2013) or 50% of account value (whichever is less) to help finance their business

Entrepreneurs don’t sit around waiting for the economy to recover; they take action to boost their situation. They become part of the economic solution by creating opportunities for themselves and their families. If this fits your profile, becoming an entrepreneur could very likely be the greatest business opportunity of your life.

Have an IRA Financial Group representative walk you through your small business financing options for becoming an entrepreneur. The IRA Financial Group Self-Directed IRA LLC & Solo 401(k)s for small business investing are ideal options for aspiring entrepreneurs.

Establish a Solo 401(k) or Self-Directed IRA LLC with IRA Financial Group and have immediate checkbook control to access alternative investment opportunities using tax-deferred retirement funds.

For a better understanding on how to fund a new or existing business utilizing your qualified retirement assets, please call one of our tax specialists for a free consultation at 800-IRA-0646.

Jun 25

Your 401k Investments Are In Big Trouble. Here’s Why…

Here’s a good read from Forbes.com contributor, Mitch Tuchman:

Diversification, re-balancing are keys to a successful 401k plan

Savers often talk about their 401(k) plans as if they were investments: “My 401(k) money,” as if it were a monolithic thing, indivisible and hard to understand.

Investment firms work to make it that way, offering up inscrutable options that sound about the same. Prudent Growth. Balanced Stock. Contra-this and Value-that.

Underlying all of those funds are pretty simplistic mixtures of public company stocks or bonds. And therein lies the rub. You could own 10 different funds and feel well-diversified, but that doesn’t make it so. Five of those funds might have a 10% investment in the same company.

A few web sites, among them Morningstar and the private investment industry regulator FINRA, offer online tools to help you understand what you’ve bought.  But they can’t help you understand why you own those funds, other than that a plan administrator once briefly mentioned that “diversification” is a good idea.

Diversification doesn’t mean owning more stock or six flavors of indistinguishable mutual funds. It doesn’t even mean owning a smattering of bonds. Diversification means owning a broad mix of asset classes, even things you might not have considered.

As Robert Powell at MarketWatch points out, 401(k) plans should operate more like pension funds when it comes to available investment classes. Workplace plans, for instance, typically own about 60% stocks and 40% bonds and cash.

Thinking broadly

Pension funds, meanwhile, play a very different game. A recent breakdown of their holdings showed about 30% stocks, 30% bonds, 2% international bonds, 4.5% real estate and 10% alternative investments, Powell explains.

Whoa, whoa, whoa, you might say. I’m not ready for “alternative” investing. I’m hardly ready for Dow Jones! Yet, you should be thinking more broadly.

Pension funds didn’t come up with this approach last week. They’ve been steadily investing in a multitude of asset classes for years and years. It’s the same model used by university endowments and major corporations.

It works because pension plans distribute risk across a broader set of possible outcomes. In any given year, one or another investment type is likely to benefit from a short-term wave of attention.

It’s extremely hard to predict what the mass of global investors will chase next. A great pension manager knows that he or she can’t predict these flows and won’t try.

Instead, they build a careful model that balances risk with the time horizon of the investors, then owns the whole market.

No-brainer approach

As one side of the teeter-totter rises or falls, it’s a matter of rebalancing, that is, programmatically selling off gainers in order to buy the relative “losers” who get left  behind — for the moment. Decades of finance research shows it works.

Burton Malkiel, the Princeton professor and one of the fathers of passive investing, explains that rebalancing works because it reduces risk while actually increasing returns. It’s the kind of no-brainer approach that 401(k) investors really need but, too often, simply cannot find in their current plans.

For more info on what you can do to make your 401k work harder for you, contact one of the tax experts at the IRA Financial Group @ 800.472.0646.

Jun 24

Saving $1 Million for Retirement

Accumulating $1 million dollars over a lifetime may seem like a lofty goal for some of us.  However, if you follow some basic strategies, just about anyone can achieve this goal by the time they reach retirement age.  There are obstacles to overcome like taxes, fees and penalties, but with the right planning, you can make the most of your savings.

First and foremost, the younger you start saving, the easier it will be.  As soon as you begin earning money, you should start putting something away for retirement.  The more time the money has to grow, the more earning power your savings will have.  For example, if you assume a 7% return on your investments, you’ll need to save $4,682 per year in a retirement plan such as a 401(k) or IRA to reach the magic number by age 65.  If you wait until you’re 35 to start saving, you need to contribute $9,894 to attain that same goal.  From there, the number grows enormously!

You can save $1 Million by investing smarlty in a 401k or IRANext, set more goals than just that of the ultimate prize.  It will take the average person decades to attain that $1M.  You might get discouraged if you don’t have smaller goals along the way.  You can set a goal for every $50,000 or $100,000 and reward yourself at each milestone.  This will build your confidence and make saving that much easier.

Using tax-advantaged retirement plans will obviously help save faster.  Traditional plans allow for tax-deferred growth while also giving you a tax break every year you contribute.  Those in the 25% bracket who contribute $5,000 to a traditional IRA or 401(k) will save about $1,250 each year.  More money to invest in your future.  You can also opt for a Roth 401(k) (if your employer offers it) or Roth IRA.  These plans are funded with after-tax money.  You won’t get an immediate tax break, but withdrawals during retirement are generally tax-free.  Invest in both types of plan to better diversify yourself.

Speaking of 401(k) plans, check to see if your employer offers a match.  Make sure to contribute enough to get the full match if available.  This is the easiest money you can get while saving for retirement.  The typical match is 50% of your contributions up to 6% of your salary.  If you earn $40,000 per year, that match would equal $2,400.  Therefore, you would need to contribute $4,800 to get the entire match which would then give you a $7,200 total contribution for the year.  Not too shabby!

When it comes to investing in your plan(s), keep an eye on the expense ratios.  Index funds are the best option for most people since fees are typically lower than that of actively managed funds.  The percentage you pay in fees can greatly influence your balance.

One key thing to avoid is dipping into your retirement funds.  Not only will you pay taxes on traditional plans and be hit with early withdrawal penalties if you are under age 59 1/2, you’ll have less earning power than with a full balance.  Whatever you take out, it lessens how much you’ll be earning each year.  A good plan is to set aside some money in an emergency fund.  Usually about two months worth of salary is sufficient.  That way, if an expense arises, your retirement won’t suffer because of it.

These are just a few things to consider to start building your nest egg.  Of course, there are a ton more strategies you can utilize.  Don’t get that new sports car when a used sedan will work.  Don’t waste money eating out three times a week.  When you get a raise or bonus, up your retirement contributions.  Watch those credit cards!  The list goes on and on.

Most importantly, don’t go it alone.  A financial adviser can help lead you in the right direction and help to avoid costly missteps.  The tax experts at the IRA Financial Group will work with you based on your specific situation, not just a general outline.  Give them a call at 800.472.0646 or visit their website now!

Jun 21

Real Estate Professionals Turning their Attention to Self-Directed Solo 401(k) Plan

Real estate agents and professionals establishing Solo 401(k) Plan to take advantage of retirement and investment benefits. IRA Financial Group Introduces Special Self-Directed Solo 401(K) Solution for Real Estate Professionals to help them maximize benefits.

The IRA Financial Group announces the Special Self-Directed Solo 401(k) Solution for Real Estate Professionals. This plan is designed for self-employed professionals looking to maximize their retirement savings.

The rising popularity of the Solo 401(k) Plan is a result of the EGTRRA tax law change that became Real Estate Professionals Turning their Attention to Self-Directed Solo 401(k) Planeffective in 2002. The law changed how salary deferral contributions are treated when calculating the maximum deduction limits for contributions to a Solo 401(k) Plan. This change created an opportunity for self-employed professionals, such as real estate agents, with no employees to put away additional amounts toward their retirement.

A Solo 401(k) Plan, also known as an Individual 401(k) or Self-Directed 401(k) Plan, offers one the ability to use their retirement funds to make almost any type of investment on their own, tax-free and penalty-free without requiring the consent of any custodian or person. “Establishing a Solo 401(k) Plan offers a number of tax, retirement, and investment advantages,” stated Adam Bergman, a tax attorney with the IRA Financial Group. “IRA Financial Group’s Solo 401(k) plan is unique and so popular because it is designed explicitly for the self-employed professional,” stated Mr. Bergman.

There are many features of the IRA Financial Group’s Solo 401(k) plan that make it appealing for small business owners. IRA Financial Group’s Solo 401(k) Plan high contribution limits will allow a plan participant to make annual contributions up to $51,000, with an additional $5,500 catch-up contribution for those over age 50. Additionally, IRA Financial Group’s Solo 401(k) Plan allows plan participants to borrow up to $50,000 or 50% of their account value (whichever is less) for any purpose, including paying credit card bills, mortgage payments, or anything else. The loan has to be paid back over a five-year period at least quarterly at a minimum prime interest.

The IRA Financial Group was founded by a group of top law firm tax and ERISA lawyers who have worked at some of the largest law firms in the United States, such as White & Case LLP, Dewey & LeBoeuf LLP, and Thelen LLP.

IRA Financial Group is the market’s leading Solo 401(k) Facilitator. IRA Financial Group has helped thousands of clients take back control over their retirement funds while gaining the ability to invest in almost any type of investment, including real estate without custodian consent.

To learn more about the IRA Financial Group please visit our website at http://www.irafinancialgroup.com or call 800-472-0646.

Jun 20

Is a 401k Your Best Option?

When asked if you should contribute to your employer’s 401k plan, the common response is “yes, of course you should”.  Any contributions will lower your taxable income for the year(s) you contribute, your money will grow tax-deferred inside the plan and you’ll probably be in a lower tax bracket when you withdraw the funds during retirement.  However, you should be asking yourself a few questions when deciding to contribute to a 401k plan.

Should you be contributing to your workplace 401k plan?First off, do you think you’ll be in a lower or higher tax bracket 20-30 years from now?  That usually depends on how far into your working career you are in.  The older you are, the more money you are probably making.  If you think you’ll be in a higher tax bracket later on in life, it’s usually best to pay the taxes now while you still haven’t reached your full earning potential.

Next, does your employer offer you a match?  Many employers will match your 401k contribution up to a certain percentage.  If they do, you should be contributing enough to at least reach that max.  Afterall, that’s free money and the kind of return you won’t find anywhere else.

Then, just how good is the plan offered to you?  Are there plenty of investment choices or are there just a few classes to choose from?  Are there safe, fixed options to choose from (not just bonds)?  How about the expenses of the funds in the plan?  Many 401k plans have fees that are far above what you can get elsewhere.

Further, if you have been contributing to a 401k, how has the performance been in the last decade or so?  Markets are at or near all time highs, but how does your balance compare?  Are you taking unnecessary risks with your investment choices?

If all these points result in positive answers, then it’s a good idea to invest in your workplace 401k.  However, if the opposite is true, then you’re probably better off elsewhere.  You don’t need to to be stuck in a bad plan; there are plenty of retirement investment vehicles to consider.  These include, but are not limited to, traditional and Roth IRAs, self-directed IRAs and even Solo 401k plans if you are self-employed or run a small business!

The tax experts at the IRA Financial Group are here to help you decide what your best option is.  Give them a call today at 800.472.0646 for a no-hassle consultation or visit their website now!

Jun 19

Using a Solo 401k Loan for Any Purpose

Internal Revenue Code Section 72(p) allows a Solo 401K Plan participant to take a loan from his or her 401K Plan so as long as it is permitted pursuant to the business’s 401K Plan documents.

A solo 401k loan is permitted at any time using the accumulated balance of the solo 401k as collateral for the loan. A Solo 401(k) participant can borrow up to either $50,000 or 50% of their account value – whichever is less. This loan has to be repaid over an amortization schedule of 5 years or less with payment frequency no less than quarterly. The interest rate must be set at a reasonable rate of interest – generally interpreted as prime rate + 1%. As of 1/13/10 prime rate is 3.25%, which means participant loans are to be set at the very reasonable Interest rate of 4.25%. The Interest rate is fixed based on the prime rate at the time of the loan application.

How do I Take Out a Loan from My 401K Plan?

As long as the plan documents allow for it and the proper loan documents are prepared and executed, a participant loan can be made for any reason. The solo 401k loan is received tax-free and penalty free. There are no penalties or taxes due provided loan payments are paid on time.

Our 401k Plan documents will allow you to use a loan from your Solo 401k for any investment purposes, including real estate, funding your business or a new business, tax liens, private placements, etc.

When can a Solo 401K Loan be Useful?

As a result of the recent economic meltdown, banks and other financial institutions have significantly limited their lending capacity to self-employed business owners, thus, causing grave financial pressure on self-employed business owners. The Solo 401k Plan is a perfect structure for any self employed business owner seeking immediate funds for their business. Solo 401(k) participants can borrow up to either $50,000 or 50% of their account value – whichever is less to help finance or operate their business. Other useful ways of using the participant loan feature is to:

  • Lend the funds to a third-party who will pay a higher interest rate
  • Invest in a real estate project that offers a higher rate of return than the low interest rate you must pay
  • To consolidate debt
  • Help make personal mortgage payments
  • Help pay off credit card debt
  • To pay for college expenses
  • To pay for unexpected emergencies
  • Avoid distribution penalties and gain use up to $50,000 immediately with no restrictions
  • Invest in a new franchise or business
  • Make any alternative Investment that will generate a higher rate of return than the low Interest rate imposed on you, such as tax liens, private placements, or mortgage pools.
  • Invest in a transaction that would otherwise be a Prohibited Transaction under Internal Revenue Code Section 4975.

Quick, easy, and cheap access to a $50,000 loan to be used for any purpose.

Solo 401k Structure

To view a diagram of the Solo 401k structure, please select the image below.


For more information about the Solo 401(k) loan or any other features of the Solo 401(k), please contact one of our 401k experts at the IRA Financial Group @ 800.472.0646.

Jun 18

“Employer Rollover Solo 401k Plan Solution” for Rollover of Former Employer Retirement Assets

IRA Financial Group, the leading provider of self-directed solo 401(k) plans, announces the introduction of the “Employer Rollover Solo 401k Plan Solution” for individuals who wish to rollover former employer 401(k) Plan, 403(b), or 4579b) funds to a self-directed retirement plan. The “Employer Rollover Solo 401k Plan Solution” is designed specifically for individuals who have left their former employer in order to establish their own business and wish to rollover the retirement funds into a new retirement plan established by the new business. “The “Employer Rollover Solo 401k Plan Solution” will allow an individual with former employer retirement assets to roll the assets tax-free into a self-directed Solo 401(k) Plan,” stated Adam Bergman, a tax attorney with the IRA Financial Group. “The Solo 401(k) Plan will allow the individual to make traditional as well as non-traditional investments, such as real estate with the retirement funds as well as borrow up to $50,000 tax-free for personal or business use,” stated Mr. Bergman.

Solo 401(k) Plan solution will accept direct rollovers from former employer retirement plan tax and penalty-free. IRA Financial Group’s Solo 401K Plan is a cost effective 401(k) plan that was designed specifically for the self-employed or the small business owner with no employees. The Solo 401K plan, also called the Individual 401K or Self Directed 401K Plan is a retirement plan designed to maximize contributions and be less complex and less expensive to maintain than a conventional 401(k) Plan. With the Solo 401(k) Plan, a plan participant can make high contributions – up to $56,500 – borrow $50,000 or 50% of his or her account value, and make real estate and other investments tax-free and without custodian consent.

With IRA Financial Group’s Solo 401(k) Plan, as trustee of the plan, the plan participant will have the ability to make traditional (stocks, mutual funds, etc) as well as non-traditional investments (real estate, precious metals, tax liens, private businesses, etc) tax free and without requiring the custodian consent. Furthermore, IRA Financial Group’s Flex Solo 401K Plan account can be opened at any local bank or credit union. “No longer will an individual be told by a bank that he or she cannot make IRS approved investments with their retirement funds, such as real estate,” stated Mr. Bergman.

According to Mr. Bergman, “with IRA Financial Group’s “Employer Rollover Solo 401k Plan Solution” individuals would gain the flexibility to use their former employer 401(k), 403(b), or 457(b) retirement assets and gain more control over them in order to make traditional as well as non-traditional investments, such as real estate tax-free and penalty-free.”

With IRA Financial Group’s Flex Solo 401(k) Plan, each individual will have checkbook control over their retirement funds so they can purchase real estate, precious metals, and much more tax-free and without custodian consent!

To learn more about the IRA Financial Group please visit our website at http://www.irafinancialgroup.com or call 800-472-0646.

Jun 17

Avoid These Mistakes When Planning for Retirement

You’ve been funding your workplace 401k and possible an IRA as well, but are you making assumptions about what when and what you think retirement will be like?  For example, when you think you can stop working or just how much you’ll need when you do.  Here are a few mistakes people often making when saving for retirement.

First and foremost is assuming you’ll need less money after you retire.  Many experts say that you’ll need about 80% of what you earned during your working years to live comfortably in retirement.  That may or may not be true for you.  If you don’t have a lot of work-related expenses (such as clothing, commuting costs, food, etc.), then you can’t count on that 80% figure.  Further, during retirement, you’re probably looking forward to doing things you couldn’t do while working, such as traveling.

Avoid these mistakes when planning for retirementNext, people are living longer, so they need their retirement savings to continue to grow after retirement.  If you have too much invested in bonds, then you’re nest egg won’t be able to keep up with inflation, let alone, let you live comfortably during retirement.  Instead of an 20/80 split in stocks and bonds as was once recommended, lean more towards a 50/50 split.  Don’t let your purchasing power suffer because you’re not prepared for inflation.

Also, are you prepared if you and/or your spouse passes away.  This is especially true for non-working spouses/stay-at-home parents.  If your spouse passes away suddenly, you may not be able to get into his/her retirement assets unless you have power of attorney.  You should have an estate plan as well as beneficiaries for your accounts or they could end up in probate, costing you both time and money.

Then there are issues with health (both your health and that of health costs in general).  You may be perfectly healthy now and think you can work well past 65 if your retirement assets are lagging.  However, you don’t have a crystal ball and may be suddenly unable to work because of medical issues.  Also, don’t assume all medical expenses will be covered by Medicare, because they won’t.  Further, that doesn’t cover dental, vision or hearing.  Make sure you have money allotted towards medical expenses for you and your family.

Lastly, you need to be psychologically prepared to retire.  Suddenly finding yourself not going to work after 40+ years may be hard for some people.  Couples that aren’t used to being around each other might start bickering.  Planning may differ by each family member.  Have a plan that everyone can agree on once retirement hits.

These are just a handful of the myriad of things to consider when planning for retirement.  For more advice, contact one of the retirement professionals at the IRA Financial Group at 800.472.0646 to better help you prepare for your golden years.