Building your Retirement Investments

Cetera Financial Advisor Jason Andrew representing OFS Financial.

Saving for retirement is important. It is an investment in your future. That’s why Jason helps to take a look at plans for retirement by offering investment products and providing customers with sound financial advice on investments for their future.

Every person is different with unique dreams and there are many different options to help you work towards those dreams. Jason works with each client to know what their goals are and what they are trying to accomplish with their investment Funds.  Then he can give them information on what types of accounts will be most suitable for them.

With every client, we ask a few questions before they start working on a financial plan to best fit their needs. Take a look at the questions below to see how you are progressing with the basics when it comes to retirement savings:

Do You Have an Employer Sponsored Plan?

Don’t miss out on free money. For the most part, traditional pensions have gone the way of the dinosaur. However, many employers still offer matching retirement investment plans. If you have a matching plan, it is very important to contribute to receive the maximum match.

Do You Have Savings Set Aside?

It’s important to have three to six months of living expenses saved for an emergency. Having a cushion to protect you from unforeseen troubles like job loss or other hardships is important. If you have to pull out money from your retirement plan, you will likely face stiff penalties.

Have You Started a Roth IRA?

Though there are some income exclusions and qualifications, Roth IRAs are taxed at today’s rate, in the investor’s current tax bracket, which is usually much lower than later in life once they’ve accumulated wealth.

A scene through the rear view mirror of an RVWeighing Risk and Reward

Certificate of Deposits (CDs) can be a great option for those that are risk averse and want to ensure that they protect their principle, however, the rate of return on CDs is much lower than other options like stocks, bonds and mutual funds.

No matter what you invest in, keep an eye on the administrative costs or other expenses and be aware of how much your investments are costing you.

Building the Nest Egg

Pay yourself first. Setting up automatic deposits routed into your retirement plans can be a useful strategy for making regular investments without the temptation to skip contributions or the pitfall of forgetting when life gets busy. If you are trying to meet your IRA contribution limit, consider adding funds from bonuses or part of your income tax return.

Start early with retirement investments, compound interest is a powerful thing. The earlier you begin investing, the longer you have to both build up your investments and see potentially a good return on them.

To qualify for the tax-free and penalty-free withdrawal or earnings, a Roth IRA must be in place for at least five tax years, and the distribution must take place after age 59 ½ or due to death, disability, or a first time home purchase (up to a $10,000 lifetime maximum). Depending on state law, Roth IRA distributions may be subject to state taxes. For a comprehensive review of your personal situation, always consult with a tax or legal advisor. Neither Cetera Investment Services LLC nor any of its representatives may give legal or tax advice. A diversified portfolio does not assure a profit or protect against loss in a declining market. Investing in mutual funds is subject to risk and loss of principal. There is no assurance or certainty that any investment strategy will be successful in meeting its objectives.

Distributions from traditional IRAs and employer sponsored retirement plans are taxed as ordinary income and, if taken prior to reaching age 59½, may be subject to an additional 10% IRS tax penalty.”.

Bank certificate of deposits are insured by an agency of the Federal government and offer a fixed rate of return whereas both the principal and yield of investment securities will fluctuate with changes in market conditions. For Brokered CDs, The Annual Percentage Yield (APY) represents the interest earned through maturity date. Rates are simple interest calculation over 365 day basis. Interest cannot remain on deposit. Early redemptions are subject to prevailing market conditions that could result in a loss of principal. The Broker/Dealer does not guarantee the term of the CD. There are some unique differences between traditional bank CDs and brokered deposits:

  • CDs purchased directly from the bank may face an interest penalty if redeemed prior to maturity.
  • Brokered CDs cannot be redeemed back to the institution prior to maturity.
  • Early redemption or liquidation prior to maturity may be an amount less than the original price.