Iowa Fiduciary

Iowa Fiduciary Services Part 3: Retirement Planning

Make 2022 the year you finally get serious about retirement with the trusted Fiduciaries at Johnson Wealth and Income Management.

Looking for Fiduciary services in Iowa? Third on the list to help secure your financial future is adequate Retirement Planning. Retirement Planning consists of various financial strategies including: saving, investments, and ultimately distributing money meant to sustain oneself during retirement. Retirement planning takes into account not only assets and income but also your future expenses, liabilities, and life expectancy. If you’re ready to break out of this worry and get your retirement plan back on track, here’s what you need to know.

What is Retirement Planning?

Retirement planning determines retirement income goals and the actions and decisions necessary to achieve those goals. It includes identifying sources of income, sizing up expenses, implementing a savings program, and managing assets and risk. Future cash flows are estimated to gauge whether the retirement income goal will be achieved. Retirement plan regulations seem to be going through a never-ending cycle of revisions. 

It can be hard to keep up with the revisions on your own. That’s why it’s key to a healthy financial future to have a Fiduciary to help guide you through the lifelong process that is retirement planning. You can start at any time, but it works best if you factor it into your financial planning as early on as possible. That’s the best way to help ensure a safe, secure retirement. 

Retirement Planning Goals

It’s important to remember that retirement planning starts long before you retire—the sooner, the better. The amount you need to retire comfortably is highly personalized, but there are numerous rules of thumb that can give you an idea of how much to save. Most financial advisors suggest using the 80% rule, meaning you need enough to live on 80% of your income at retirement.

You should also consider taking advantage of any employer-sponsored 401(k) or 403(b) plans. The upfront benefit of these qualified retirement plans is that your employer has the option to match what you invest up to a certain amount. For example, if you contribute 3% of your annual income to your plan account, your employer may match that, depositing the equivalent sum into your retirement account, essentially giving you a 3% bonus that grows over the years.

However, you should contribute more than the amount that will earn the employer match; some experts recommend upward of 10%. For the 2022 tax year, participants under age 50 can contribute up to $20,500 of their earnings to a 401(k) or 403(b), some of which may be additionally matched by an employer. Additional advantages of 401(k) plans include earning a higher rate of return than a savings account. The funds within the account are not subject to income tax until you withdraw them. Since your contributions are taken off your gross income, you will get an immediate income tax break. Those who are on the cusp of a higher tax bracket might consider contributing enough to lower their tax liability.

Retirement Planning & Financial Education 

While determining how much you’ll need for retirement and how to allocate your savings among a defined contribution, the retirement plan’s investment menu will be extremely helpful in enhancing your financial education. Some of the most complex decisions that you’ll have to make involve the full breadth of personal finance issues. 

Financial education can help prepare you for more than retirement. It can help you gain confidence in your everyday spending behaviors and making sure they’re in line with a well-planned wealth management program. 

At Johnson Wealth Income Management our fiduciary advisors are here to give you the tools that will help you with the following:

  • Budgeting
  • Retirement Planning and Investing
  • Credit and Debt
  • College Planning
  • Estate Planning

Where will your retirement money come from? If you’re like most people, qualified retirement plans, Social Security, and personal savings and investments are expected to play a role. Once you have estimated the amount of money you may need for retirement, a sound approach involves taking a close look at your potential retirement income sources. Which is where we can help!

Get Started Today

Finding the right financial advisor that fits your needs doesn’t have to be hard. Johnson Wealth and Income Management will give you peace of mind when it comes to communicating the risks that you are taking and how those risks may impact your portfolio. It’s important to note that these factors can vary widely from client to client, as there’s no one size fits all when it comes to financial planning.

A fiduciary must put your best interest above their own. A financial advisor who’s a fiduciary has an ethical duty to recommend the best investments for you. As an Iowa-based fiduciary, Matthew P. Johnson from Johnson Wealth and Income Management seeks to ensure that his clients’ assets are allocated appropriately—across a mix of asset classes. 

It’s important to meet with us regularly to help with rebalancing your portfolio to help ensure your accounts reflect our latest asset allocation advice and reallocate your assets to reflect changing life circumstances. If you’re ready to be matched with a local advisor that will help you achieve your financial goals, get started now.

For more information on Fiduciary services and portfolio management in the state of Iowa, reach out to your trusted Iowa advisors at Johnson Wealth Income Management here today.

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