Benefits of Retirement Planning
I have been a professional financial adviser for 30+ years. I specialize in building custom portfolios for people who are saving their money for retirement or are already retired.
I can access thousands of mutual funds, ETFs, annuities, life, and disability plans. As a result, I have all the tools that individuals, companies, and nonprofits need for their wealth management and financial planning for retirement.
Because I am an independent financial advisor, there are no requirements to fulfill before using a specific tool. Therefore, you benefit from advice and products tailored to your unique financial needs.
Retirement Planning Advisor In All Three Stages
Generating Retirement Income
- Estimating retirement income needs
- Reposition your investments to generate retirement income
- Monitor those retirement investments
- Avoid IRS penalties by withdrawing the required amount from your retirement plans
- Beneficiary planning
Transitioning Towards Retirement
- Analyze your 401k or 403b plan
- Discuss your rollover options
- Measure your retirement risk tolerance
- Investigate your pension options
- Evaluate your social security and Medicare options
- Inspect if any group life insurance is eligible for conversion to an individual policy
Saving for Retirement
My Professional Designations
Financial advisors who hold the AIF® designation have:
- Completed the AIF® Designation Training;
- Passed the AIF® designation exam;
- Met the designation’s prerequisites and qualification and conduct standards;
- Accrued a minimum of six hours of continuing professional education, with at least four hours coming from fi360-produced sources;
- Attested to a code of ethics.
Financial professionals who hold the CRPS® designation have:
- Completed a course of study encompassing design, installation, maintenance and administration of retirement plans;
- Passed an end-of-course examination that tests their ability to synthesize complex concepts and to apply theoretical principles to life situations;
- Pledged adherence to the CRPS® Standards of Professional Conduct, and are subject to a disciplinary process in that regard.
CRPS® designees renew their designation every two years by completing 16 hours of continuing education, reaffirming adherence to the Standards of Professional Conduct, and complying with self-disclosure requirements.
Financial Advisor who hold the AWMA® designation have:
- Completed a course of study encompassing wealth strategies, equity-based compensation plans, tax-reduction alternatives, and asset-protection alternatives;
- Passed an end-of-course examination that tests their ability to synthesize complex concepts and apply theoretical concepts to real-life situations;
- Agreed to adhere to the AWMA® Standards of Professional Conduct, and are subject to a disciplinary process in that regard.
AWMA® designees renew their designation every two years by completing 16 hours of continuing education, reaffirming adherence to the Standards of Professional Conduct, and complying with self-disclosure requirements.
CFS designation is awarded upon passing an examination on mutual funds, ETFs, REIT's, closed-end funds, and similar investments.
Advanced studies on topics include:
- Fund analysis and selection;
- Asset Allocation;
- Portfolio Construction
- Sophisticated investment strategies for risk management, taxes, and estate planning.
San Diego, CA, November 13, 2020 – The Institute of Business & Finance (IBF) recently awarded Tim Hayes with the only nationally recognized tax designation, CTS™ (Certified Tax Specialist™). This graduate-level designation is conferred upon candidates who complete an 135+ hour educational program focusing on personal income taxes and methods to reduce tax liability. The combined top state and federal bracket can easily exceed 40%.
San Diego, CA, September 1, 2020 – The Institute of Business & Finance (IBF) recently awarded Tim Hayes with the estate planning designation, CES™ (Certified Estate and Trust Specialist™).
This graduate-level designation is conferred upon candidates who complete a 135+ hour educational program focusing on trusts, wills, probate, retirement benefits, caring for children, and what should be done after the death of a loved one. Over $50 trillion is expected to pass from one generation to another during the next half-century.
The Accredited Portfolio Management AdvisorSM, or APMA® program, is a designation program for financial professionals. The program educates advisors on the finer points of portfolio creation, augmentation, and maintenance. Students will gain hands-on practice in analyzing investment policy statements, building portfolios, and making asset allocation decisions.
San Diego, CA, May 12, 2020 – The Institute of Business & Finance (IBF) recently awarded Timothy Hayes with the only nationally recognized annuity designation, CAS® (Certified Annuity Specialist®).
This graduate-level designation is conferred upon candidates who complete a 135+ hour educational program focusing on fixed-rate and variable annuities. Several trillion dollars are invested in annuities; it is estimated that at least one-third of all annuity contracts are not titled correctly.
Not Sure Which Retirement Plan Is Best for You?
I build and manage retirement accounts for individuals with IRAs, Massachusetts public-school teachers with 403(b) accounts, and business owners for whom I design and work SIMPLE, Solo 401(k) plans, and SEP Plans.
I also help employers to improve their 401(k) plans.
Read More: Retirement Financial Advisor
Save for Retirement at Work
Saving money in the right retirement plan with the right mix of investments will lead you toward a comfortable retirement.
Retirement Plans Offered by Employers
Public school employees are eligible for two retirement savings plans, a 403b or a 457 plan. Self-employed business owners can use one of three retirement plans:
- Solo 401k
- SEP Plan
Many of you have 401k plans where you can choose a traditional pretax retirement contribution or an after-tax Roth contribution.
2022 Retirement Plan LimitsThe Internal Revenue Service increased the annual contribution limits on some popular qualified retirement plans. So you will be able to put more into your workplace retirement account in 2022.
|Name of Retirement Plan||Basic Contribution Limit||Age 50 and up Catch-Up||Basic + Age Fifty|
|401(k) Retirement Plan||$20,500 per year||$6,500 per year||$27,000|
|SIMPLE IRA Retirement Plan||$13,500 per year||$3,000 per year||$16,500|
|SEP IRA Retirement Plan||Cannot exceed the lesser of: 25% of compensation, or|
$61,000 per year
|403b Retirement Plan||$20,500 per year||$6,500 per year||$27,000|
|457 Retirement Plan||$20,500 per year||$6,500 per year||$27,000|
|Public School Employees Are Eligible for Both a 403b and 457||$41,000 per year||$13,000 per year||$54,000|
Retirement Savings Tips
Suppose you can not save the maximum try saving a percentage of your salary towards retirement. For example, 5%. That way, as your pay goes up, the rate saved stays the same, but the dollar amount goes up.
Retirement Planning Age
A rule of thumb is subtracting your age from 100 and using the result to invest in equities. So if you are 40 years old, subtracting your age from one hundred equals sixty. So 60% would be the percentage of your retirement account invested in riskier investments such as stocks and high-yield bonds.
A financial advisor can help you plan retirement planning by taking an online risk tolerance questionnaire. The two I know of are Riskalyze or FinaMetrica.
Active vs. Passing Retirement Investing
Warren Buffett once said of Jack Bogle, the founder of The Vanguard Group and inventor of index investing, ‘If a statue is ever erected to honor the person who has done the most for American investors, the hands-down choice should be Jack Bogle.’ Sadly, Jack Bogle passed away in January of 2019.
With index investing, investors buy a basket of stocks or bonds. (Investors cannot directly invest in an index.) The Standard & Poor’s 500 (S&P 500) is the most popular index, which tracks the 500 largest companies on the NYSE or NASDAQ.
Moreover, most stock market indexes, including the S&P 500, are market-cap weighted: the bigger the company, the more representation it gains on the index and hence, in your investment option. Today, the largest holding represents approximately 3.7%, and the second-largest holding represents 2.6%.
And, it is not just blue-chip stocks. Virtually any asset class can be invested with an index, including small-cap stocks, bonds, high-yield bonds, foreign stocks, commodities, and more.
However, Jack Bogle was not a fan of exchange-traded funds (ETFs), believing Wall Street would create an index for everything and that the trading aspect of ETFs ran counter to the long-term benefit of index investing.
Many ETFs experienced large differences between their net asset values and market prices during the coronavirus-induced selloff. As it seemingly always does, the Federal Reserves stepped in, promising to buy ETFs, which helped bring those two prices back in alignment.
Active management is the opposite of index investing, which entails a portfolio manager or managers constructing a portfolio one security at a time. By dissecting the prospects of a company’s stock or bonds, the manager hopes to create a portfolio that can outperform the market and indexes.
Over the last ten years, however, $1 trillion of investors’ money has moved from active management to index investing. A big reason for this is that, during that same period, most active managers underperformed lower cost-index options.
Worse yet, during the Great Recession, when one hoped active management could reduce a portfolio’s losses (even though the S&P 500 Index lost approximately 50%), active managers did not perform much better, suffering losses similar or, in some cases, worse.
The significant long-term advantage of index investing is lower costs, as the fees charged to investors are significantly less than those in active management. This is because index investing has no managers to pay; no one is researching and picking the securities.
However, what Buffett and Bogle fail to recognize—or, at the very least, acknowledge—is that those active managers trying to beat the market are what makes the market efficient: because of them, most individual securities get priced correctly. Thus, with no bargains for active managers to grab, investors might as well buy a lower-cost index.
Plus, with the Federal Reserve buying assets during market downturns, prices never get cheap enough for active managers to buy. Even Buffet, during this latest downturn, stepped back from buying after the Fed stabilized the markets. Buffet believed the Fed was doing the right thing.
So, while Buffett praises Bogle and indexing, he minimizes the importance of active management to the outperformance of indexing. Plus, if more investors switch to index investing, less research and active management will get done. This could create more bargains and set the stage for the investing world to flip back to benefit from the security selection once highlighted by Buffett’s mentors, Benjamin Graham and David Dodd, in their famous 1934 book, Securities Analysis.
Read More: Investing in an Overpriced Stock Market
Retirement Advisors Near Me
From my Boston or Dartmouth office, I will provide expert, highly personalized financial planning, retirement planning, and investment solutions when you need an independent financial advisor in Massachusetts, Boston or Greater Boston, Salem or the North Shore, Hingham, or any other town on the South Shore, Andover, the Merrimack Valley, and the MetroWest, including Framingham, or the Southcoast, Martha’s Vineyard, Nantucket, and Providence, RI.
Contribution Limits and Phase-Out Adjustments
403b, 401k, & IRA yearly contribution limits In 2022, these are the annual contribution limits for some popular retirement savings plan
- 403b, 401ks, most 457 plans, Thrift Savings Plan (TSP) – $20,500 with an additional $6,500 catch-up contribution allowed for those 50 or older.
- Traditional & Roth IRAs – $6,500 with an additional $1,000 catch-up contribution allowed for those 50 or older.
- SIMPLE IRAs – $14,000 with an additional $1000 catch-up for those 50 or older.
- SEP IRAs – $61,000 or 25% compensation, whichever is less.
- 415b defined benefit retirement plans – the limitation on annual benefits under a defined benefit plan is increased to $245,000.
Traditional Individual Retirement Account (IRAs) Phase-Outs
The new MAGI limits affect deductions for traditional IRA retirement contributions.
- Single and head of household covered by workplace retirement plan: $68,000 – $78,000
- Married filing jointly where the spouse making the IRA contribution is covered by a workplace retirement plan: $109,00 – $129-000
- Married filing jointly and a workplace retirement plan does not cover IRA contributor, but the spouse is: $204-000 – $214,000
Roth IRA Retirement Phase-Outs
The new MAGI limits affect deductions for Roth IRA contributions.
- Single and head of household covered by a workplace retirement plan. $129,000 – $144,000
- Married filing jointly: $204,000 – $214,000
- Married filing separately and the Roth IRA contributor is covered by a workplace retirement plan: $0 – $10,000
Please be sure to speak to your advisor to consider the differences between your company retirement account and a rollover investment in an IRA. These factors include but are not limited to changes to the availability of funds, withdrawals, fund expenses, fees, and IRA-required minimum distributions.
Passing the exam qualifies candidates as both securities agent and investment advisor representative.
Individuals who pass the Series 7 examination are eligible to trade all securities products: corporate securities, municipal fund securities, options, direct participation programs, investment company products, variable annuities contracts, etc.
The exam measures the degree to which each candidate possesses the knowledge needed to offer the products of investment and insurance companies, including the sales of mutual funds and variable annuities.