Category Archives: Retirement Planning

By Susan Elise Campbell
Retirement plan holders went on a historic roller coaster ride this past year, but to their credit they held on tight, said local investment professionals.
“Fortunately no one panicked in March,” said Mark Wells, CFP, co-founder of Three Buckets Wealth Management serving clients out of Fort Covington and Glens Falls.“In all aspects of life, when things are up in the air it’s easier to act irrationally.”
Uncertainty is what no one wants, said Wells.
The Three Buckets formula is to determine guaranteed income sources such as Social Security and pension, then calculate the gap between that amount and what the client wants to live on in their retired years, he said.
With a comprehensive plan and short, intermediate and long-term investment buckets in place, Wells said “clients understood how unexpected market swings can affect their overall goals and therefore did not act emotionally” when COVID-19 drove down the stock market.
“Who could know how the pandemic would play out?” said Conor Boyd, managing partner of Thoroughbred Advisors, which has a Queensbury office. “But we were prepared by being positioned in such a way that we could take advantage of opportunities.”
Boyd highlighted the need for a strong liquidity position in any portfolio, through cash equivalents and a guaranteed portion, which is traditionally fulfilled by insurance products.

By David L. Cumming
As we move through our career, we often accumulate a number of different retirement accounts: A traditional IRA here, a rollover IRA there, and two or three scattered 401(k) accounts left in the plans of former employers.
As the accounts add up, it can become difficult to get a clear picture of your overall retirement preparedness.
Consolidating your retirement accounts into one central account can help you make sure your retirement assets are invested appropriately for your overall goals, better track the performance of your holdings and, in some cases, discover more investment choices and potentially incur lower fees.

By Stephan Scribner

If you’re asking this question, you probably have a 401(k) or other retirement plan through a former employer. The short answer is yes—most retirement plans allow you to roll your plan funds over into an IRA after you’ve left your employer’s service. However, there is more than one way to do a rollover, and how you do it can be critical.

In most cases, your best strategy is to do a direct rollover. This is a direct transfer of funds from your employer-sponsored plan to your IRA. The administrator of your employer-sponsored plan may send the check right to the trustee of the IRA you have selected. That way, the money never passes through your hands. 

Alternatively, the plan administrator may give the check to you to deliver to the IRA trustee. This also qualifies as a direct rollover as long as the check isn’t made payable to you. Instead, it should be made payable to the IRA trustee for your benefit. A direct rollover will avoid tax consequences and penalties.

You can also do an indirect rollover, but it’s rarely a good idea. Here, the check is made payable to you. When you receive the check, you cash it and deposit the funds in the new IRA within 60 days. 

By Susan E. Campbell

December is  good time for business people  to meet with investment, accounting and tax professionals to look at the year behind and the one ahead.

At Paul Dowen’s office, Whittemore Dowen and Riccaiardelli, LLP in Queensbury, the team is working to manage retirement accounts in a way that maximizes deductions and minimizes tax liabilities under the new rules.

Even though all individual tax brackets, except the 10 percent bracket, are lower because of the Tax Cuts and Jobs Act, the experts can offer some tried-and-true tips for managing the tax burden.

“The biggest jump in the new tax tables is from the 12 percent bracket to 22 percent, so the challenge is how we keep more income at the 12 percent rate,” said Dowen. “The first step is to make sure the maximum amount allowed has been contributed to the company’s 401(k) plan.”

These plans must be funded by salary deductions before year-end, so time is running out to play catch-up.

“An employee who maxes out his 401(k) right now might have a zero paycheck, but will have taken advantage of a provision for reducing taxable income,” said Anthony Capobianco of Capobianco Financial Advisors in Clifton Park.

By David L. Cumming

The new year is a time of reflection and resolutions. For many of us, it’s an opportunity to make a fresh start. Whatever your approach, it’s the perfect time to think about what you can do to make the best use of the wealth you’ve worked so diligently to earn.

You have unique goals, and your wealth management strategy should be designed to reflect the specific aspirations you have for yourself and your family. It should also go beyond just creating a portfolio to help you plan for retirement and other life priorities, such as saving for your child’s education or leaving a meaningful legacy. 

The evolution of wealth management.

Over the past 30 years, the wealth management industry has evolved. The role of the Financial Advisor has transformed from stock broker to caretaker of their clients’ financial lives. 

Today, wealth management is a high-level professional service that goes beyond just investment advice to encompass every part of your financial life. Rather than trying to piece together advice from a series of professional advisors, you benefit from a holistic approach where a single financial advisor or team of financial advisors coordinates all the services needed to manage your wealth and plan for your current and future financial needs.