Retirement Planning
At All Star Financial, our disciplined approach to financial planning and investment management enables us to develop a sound financial strategy for our clients. Together we will analyze your short term and long term goals, review a retirement budget, and assess your existing portfolio (asset allocation, diversification, risk, etc.) We enjoy getting to know our clients, and during the process we will ask a lot of questions so we can understand your needs. After we have completed a thorough analysis of your situation, we will provide you with a retirement “road map” that will help you achieve your goals.
When planning for retirement, we believe that maximizing your company retirement plan and IRA contributions are the first steps toward achieving your retirement goals. The difference between a compounding growth of assets tax-deferred vs. taxable is very substantial over time. You can see in the illustration below that for every $5,000 that a 30-year-old has accumulated a tax-deferred account has $320,000 at age 66 versus only $80,000 in a taxable account at the same age. So, each time you receive a raise, view the extra dollars as an investment in the future. In fact, contact your benefits department to see if you can make an additional contribution to your plan.
| Age |
Taxable |
Age |
Tax Deferred |
| 30 |
$5,000 |
30 |
$5,000 |
| 39 |
$10,000 |
36 |
$10,000 |
| 48 |
$20,000 |
42 |
$20,000 |
| 57 |
$40,000 |
48 |
$40,000 |
| 66 |
$80,000 |
54 |
$80,000 |
|
|
60 |
$160,000 |
|
|
66 |
$320,000 |
*Assuming 12% gross rate-of-return and 33% tax bracket, giving a net taxable return of only 8%
|
