What the ‘Secure Act’ Could Mean for Your Retirement
For Mark Roberts’ Use: At the end of May, the House of Representatives overwhelmingly approved the Secure Act (with a vote of 417-3) and sent the bill over to the Senate. If the bill is successful, it will become the first major overhaul to retirement planning since 2006. So, what could the Secure Act mean for you?
Those who work for small businesses might gain access to a 401(k). It’s no secret that the benefits of a 401(k) have mostly been enjoyed by those who work for larger employers. If the Secure Act is passed and signed into law, small businesses will be offered tax incentives to help them establish 401(k) plans for their employees.
Part-time employees could gain access to a 401(k). A similar bill in the Senate allows for part-time employers to access their company’s 401(k) plan after working 500 hours for two consecutive years. This plan might pass, or the Secure Act could be modified to include such a provision.
You could save for retirement while paying down student loans. Designed to encourage young people to save for retirement, this provision allows employers to make matching contributions to worker 401(k) funds, equal to the amount of their student loan payments.
You could contribute to your IRA longer (and delay required minimum distributions). Currently, you can only contribute to an IRA until age 70 ½, and must begin your required minimum distributions by that age. The Secure Act would lift that age limit to 72.
With American workers facing numerous challenges with regard to retirement planning, the bipartisan support for the Secure Act is encouraging. However, the bill does not address weaknesses within the Social Security system, nor the problems faced by multi-employer pensions. We still recommend that you pursue regular meetings with a financial planner, and continue to save as much as possible each year. Give us a call and we’ll schedule a meeting to review your retirement plan.
Share This Story, Choose Your Platform!
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.