Do I Need a Financial Plan for Retirement?
As seen in Kansas City Business Journal.
Great question! Retirement is a big decision. You are making a life changing decision to stop working and to leave your job. If you want more certainty on whether or not you can afford retirement and making sure you have saved enough, then yes, you need a financial plan.
Most financial advisors have a basic retirement planning software to help you make these projections. However, there are many variables that need to be considered that the basic retirement plans do not offer. You need to ask your advisor if they have taken into account the tax sensitivity when they create retirement plans.
Tax sensitivity is just as important to you as the rate of return and inflation. Tax sensitivity will take into account how different assets and incomes are taxed. For example: social security is not fully taxed, some pensions are not state taxed, there are short and long term capital gains, there are full ordinary income taxes, and there are income tax free assets.
Too many times, we meet with new clients and if their current advisor ran a financial plan for them, it was generic, not taking everything into account and clients simply do not know it.
At Affinity Asset Management, our financial/retirement plans are customized and tax specific taking as many things into consideration as we can. We like to design your blue prints first before we look at the products you have or should have. If you want a customized tax specific financial plan, give Affinity Asset Management a call. If your financial advisor has not talked to you about this, ask yourself why? Call Affinity Asset Management for a 2nd look and start the process of saving income taxes.
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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.
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