What retirement planning services yield the biggest ROI?
June 22, 2022 at 7:00 AM
A woman planning her retirement with retirement planning services.

While your retirement may seem distant, it is often closer than people think. Strategic planning is essential to ensure you are adequately prepared when the time comes. However, this is often incredibly difficult to do alone and requires extensive expertise and experience. Here are retirement planning services that maximize your ROI to ensure your golden years remain gilded:

​​Investment services

Understanding your retirement income needs dictates the investments you should make to best prepare you for retirement.

However, without professionals, understanding the ideal investment strategy for your circumstances is daunting because it requires assessing the full scope of your financial situation. Investment consultants calculate your monthly retirement expenses, including:

  • Mortgage
  • Food
  • Clothing
  • Debts
  • Loans
  • Car payments
  • Utilities
  • Healthcare
  • And more

Investment services also include calculating your projected income, which includes savings, Social Security, investments, and retirement funds. Investment advisors determine your risk tolerance and timeline, too. Low-return investments are more secure, while high-yield investments typically require more risk.

Moreover, investing always involves fluctuation. If you have longer to plan for retirement, you can endure higher investment fluctuations and risks than someone with a shorter timeline. Carefully considering your risk tolerance and time horizon helps avoid making devastating financial mistakes.

Plus, professionals calculate the rate of return on investments to map out the best investment solution for your circumstances.

IRA or 401(k)

Investing in an IRA or 401(k) account is also essential, but understanding which is ideal for your situation requires expertise. 401(k)s are tax-deferred retirement savings employers provide employees by contributing a percentage of their salary to these accounts.

Typically, 401(k)s have a contribution limit of $20,500. The employer deposits money in these accounts into investments with the ideal risk-tolerance levels for that respective employee, which results in investments accruing and compounding tax-free.

Money is distributed when the employee is 59.5-years-old or older with options to take out loans if needed. The government taxes withdrawals at a person’s standard tax rate. Individual retirement accounts (IRAs) are tax-deferred retirement savings accounts set up independently.

IRAs often have a contribution limit of $6,000, but these accounts offer more investment options. Ultimately, retirement planning services help make the right decisions for your situation to optimize your IRA or 401(k) and realize the best return on investment.

Tax services

Optimal retirement planning requires tax planning. Taxes are confusing, but with retirement planning, taxes are more complicated because this requires planning years in advance.

Tax planning involves understanding what investments and insurance policies make the most sense to reduce tax liabilities and requires considering things like when to tap into IRAs, 401(k)s, and Social Security well in advance.

For example, the sequence in which you tap into these different income sources impacts your overall tax burden. Tax services enable you to minimize your tax burden by supplying you with the ideal retirement income plan.

Regardless of what you earn, 15% of your Social Security is tax-exempt, though this can vary depending on your state. With your 401(K) or IRA, however, withdrawals are taxed as standard income. Even investment returns are typically taxed.

Tax advisors can optimize your current tax situation and determine the order you draw from future taxable and non-taxable sources to balance current and future taxes and maximize income.

Get help planning for retirement today

It’s important to remember it’s never too late to begin preparing for retirement, and the sooner you start, the better equipped you will be. Fortunately, OWLFI offers premier retirement planning services. With a fully-integrated, seamless team, you receive personalized, communicative, and streamlined retirement planning solutions that secure your future. Contact them now to get started.

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