An Important Retirement Question to Consider
For Mark Roberts’ Use: We often hear about the wage gap between men and women, but what does it really mean? Statistically, women do earn less than men, but of course we know those figures aren’t due to lack of education or skill. This situation often arises simply because women tend to take more time away from their careers when having children or providing care to other family members.
As retirement planners, this raises a particular issue for us. Not only do women tend to earn less; that often means they save less for retirement, too. According to one study by the Employee Benefit Research Institute, the average IRA balance among men amounted to $139,467, whereas women had saved only $81,700 in their retirement accounts. That’s an average retirement preparedness disparity of $57,767.
The number of female breadwinners is rising, but in the meantime, it makes sense that retirement savings are often put on hold while other life factors take priority. This situation sounds bad for women, but it affects the couple as well. When you both enter retirement, you will have less money saved than you otherwise could have.
Luckily, we do have a solution for this dilemma. If one spouse takes time away from employment (either male or female) the working spouse can help them shore up their retirement funds. A spousal IRA allows you to stash money in your spouse’s name, while enjoying the same tax benefits that you enjoy with your own retirement plan.
Of course, as with any retirement account, a spousal IRA is subject to certain rules and procedures. We urge you to contact us to learn more about this option, and together we can decide how a spousal IRA might fit into your overall retirement plans.
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In addition to managing clients’ money and giving investment and diversification advice, Mark offers something that “the other guys” don’t - a unique approach to Retirement Tax Strategies and distribution. Time and time again, Mark meets with new clients who tell him they have a great relationship with their financial advisor but have never been offered information on this kind of approach to securing their financial futures. Mark has taken this feedback to heart and works tirelessly to ensure that his strategies focus on taxes and distribution.
Mark started selling insurance for a major insurance company right out of high school to help put himself through college. After graduating with a degree in finance, he dove into estate planning on the financial side to set himself apart from other financial advisors. However, as changes were made to estate tax laws over time, Mark shifted his focus to income tax strategies.
Mark’s philosophy is “the blue prints are more important than the wall paper or carpet.” The wall paper and carpet represent products like investments and insurance policies, whereas the blue prints represent the strategies. Once strategies that truly fit the client’s needs are put in place, our focus can shift to providing you with the right products. According to Mark, “It doesn’t matter what carpet we use if the walls are not in the right place.”
Our approach to money management is designed to generate the largest alpha (quality) with the lowest standard deviation and beta (risk). By doing this, we help provide clients with the highest return on the lowest risk. Generating income for our retirees is also very important. Because withdrawing money from your portfolio hurts the account rather than helping it, our goal is to design income strategies to harm the portfolio the least making the money last longer.