Retirement Planning

The amount of income you will need when you retire depends on a lot of variables. If you own your home with no mortgage payments and are relatively healthy then you will need less than a person who is still making payments on his home and/or has serious health issues. Planning for these contingencies should start immediately so that you can take advantage of tax breaks for retirement plans as well as the compounding effect. When your retirement plan, 401k, pension, etc. is allowed to grow tax-free it can add up a lot faster than leaving the money in a savings account. Let me discuss your particular situation with you and recommend some options that will allow you to meet your retirement goals.

College Savings Planning

If you have children then it’s never too early to start planning and saving for the cost of their education. There have been several tax-law changes recently that allow parents to set aside more money and allow it to grow tax-free until it is needed. For example:

• Coverdell ESAs (formerly known as Education IRAs): the savings from this instrument can be used to pay for qualified expenses at elementary and secondary schools as well as colleges and universities. Income phase-outs are relatively high for these plans.
• EE Savings Bonds: interest earned on these bonds and then used to pay for certain qualified college expenses is not taxable. Income limitations may restrict some savers from taking advantage of this method.
• The maximum credit for the Lifetime Learning Credit has doubled for 2003. The credit per taxpayer is equal to 20% to up to $10,000 of qualifying higher education expenses with a maximum credit of $2,000.

My job is to stay abreast of the constantly changing laws and provide sound advice to you so that you can make the right decision in planning for your and your family’s future.