Connect with me on LinkedIn

Have You Saved Too Much for Retirement?

[ 0 ] September 25, 2013 |

Spectrum Financial Solutions, Have you saved too much for Retirement?

Regardless of who you are or how much money you earn during your lifetime, the current administration in Washington seems to think that they should control how much money you save for your retirement.  That’s the message President Obama sent out earlier this year with his proposed 2014 budget.

To cut to the chase, it appears that the administration’s goal was (is) to limit balances in tax-preferred accounts to an amount sufficient to fund a retirement benefit of no more than $205,000 per year.  Various estimates peg that number at around $3,000,000 for an individual retiring in 2013.  Whether this initiative actually ever gets enacted is superfluous.  What is important is the direction that Washington is heading as pertains to your planning for the future.

With the decline and/or shift in design of employer sponsored qualified plans over the past 20 years, the onus of retirement planning has shifted from the employer to the employee.  That is clear.  This is evidenced by the dramatic growth of 401(k) plans, SEP IRA’s, Roth IRA and a variety of non-qualified plans that were not only embraced by Washington but were encouraged.  Now, they want to tax us if we listened and played by their rules?

Well, apparently we have listened too carefully to the message and saved too well.  Or, have we?  While it would appear that a $3,000,000 retirement nest egg would put you firmly in the “1%”, studies show that the same amount is roughly equivalent to the benefits paid to some mid-level municipal pensioners over the course of their retirement years.  Perhaps the definition of the 1% should be expanded…or, is this just plain bad, opportunistic government shortsightedness?

Many of our clients are the targets of such proposals.  Can you imagine contributing hard earned  after-tax dollars to a Roth IRA only to be taxed again during retirement?  It is not uncommon that senior executives and entrepreneurs will have accumulated substantial retirement assets through traditional qualified and non-qualified plans during their working lifetimes.

Review of retirement programs should be performed now to determine the best planning strategies for the future.  Alternatives are out there that can be reactive to potential future legislation that may limit benefits to retirees.  Some of these alternatives are actually better than currently funded plans.  Take a look…

Whether similar legislation to the President’s budget proposal actually gets enacted in the future is up for debate.  What we do know is that a shot has at least been fired over the bow of retirement planning.  Can a shot at the waterline be far behind?

Spectrum Financial Solutions

Spectrum Financial Solutions, LLC located in New Jersey and Spectrum Financial Solutions, LLC located in FL have been assisting individuals and businesses with their financial challenges for over 30 years.  With an emphasis on partnering with the right professional, we offer technical help and  specializations to meet your every need. Retirement Planning in FL, Tax Planning in NJ and Estate Planning in NJ are our successful hallmarks.

Need to know about Privately Financed Universal Life Insurance in FL? Call us today. Family Legacy Unitrust Edge in NJ has been created to help families establish lifetime legacies in a unique manner that simultaneously addresses social and family needs. We’d like to make sure you know more. Applicable Federal Rates in FL affect many of your planning tools.

732-450-9530

George Klahre

Facebook | LinkedIn | Blog Email

Spectrum Financial

Spectrum Financial Solutions, LLC located in New Jersey and Spectrum Financial Solutions, LLC located in FL have been assisting individuals and businesses with their financial challenges for over 30 years.  Do you need to know about Privately Financed Universal Life Insurance located in FL? Call us today. Family Legacy Unitrust Edge located in NJ has been created to help families establish lifetime legacies in a unique manner that simultaneously addresses social and family needs. Applicable Federal Rates located in FL affect many of your planning tools.

George Klahre
10110 SE Osprey Pointe Dr.
Hobe Sound, FL 33455
732-450-9530
Facebook | LinkedIn | Blog |  Email

Share

Tags: , , , , ,

Category: About Us, Estate Planning, General Information, George Klahre, CFP, Investment Professionals, Retirement Planning, Sepctrum Financial Solutions, Spectrum Financial Solutions, Tax Planning

About Insurance Expert: View author profile.

Leave a Reply




If you want a picture to show with your comment, go get a Gravatar.

Complete to Proceed *