Banknotes

For the self-employed among us who want to capitalize on tax advantages, and are open to retirement-saving vehicles that go beyond the standard Roth and simple IRA, there's an alternative to consider: the solo 401(k).

Available only to small business owners/operators and their spouses, the solo 401(k) is an options for sole proprietors, S corporations, C corporations, and limited liability companies (LLCs).

In this presentation, State Bank of Cross Plains trust officer Jeff Supple explains recent IRA rule changes and their tax and planning consequences, touching on the following:

For many individuals, a traditional approach to retirement – working until age 65 or beyond – is just not their cup of tea. They prefer enjoying the fruits of their labors much sooner than later. Hard work, sacrifice, careful planning, and prioritizing saving now, can make early retirement a successful reality.

Most of us would say we work extremely hard for our money. How would you feel about getting your money to work harder for you instead? The “trick” is getting the math of compound interest on your side.

Thomas Edison famously said, “The three great essentials to achieving anything worthwhile are: hard work, stick-to-itiveness, and common sense.” These essentials are present throughout the writings of financial author David Bach, best known for his Finish Rich and Automatic Millionaire book series.

We hope you are staying safe and encourage you to use this time for “spring cleaning” of your estate and financial plans! During these unprecedented times, many of us are staying home more often and finding ourselves with extra time on our hands. Now, more than ever, it is important to make sure the many aspects of our financial futures are in order.

The coronavirus has radically affected the lives of everyone in this country – and, indeed, the world – in an unprecedentedly short amount of time. News of it on the radio, TV, and internet seems all-consuming. This piece is not intended as an update on the virus, because by the time it’s published any news contained herein will be outdated. Instead, the purpose here is to discuss the investing environment, both during this crisis and beyond.

“If you don’t know exactly where you’re going, how will you know when you get there?” That’s a very good question, posed by author and behavioral science academic, Steve Maraboli.

It resonates with financial planners who work to develop sound plans that help ensure long-term financial security for clients and their families. Financial decisions nearly always involve trade-offs – proverbial forks in the road, if you will. Absent a well-crafted plan, one is behaving as if it doesn’t matter which road is taken. Nothing could be further from the truth!

You’ve done everything you were supposed to do. You’ve saved, invested, and you have a total of $1,000,000 in your employer retirement plan. You even got the memo about Roth contributions, and $200,000 of your million is in Roth contributions. You’ve decided that now is the time to ride off into the sunset and enter the wonderful world of retirement. What’s next?

There’s no getting around it: Saving is hard. Right now, there are probably 100 more exciting things you would like to do with your money than save it. While retirement and other long-term goals may seem like distant dreams, time flies when you are having fun! And the longer you wait, the more challenging it becomes to realize the freedom you envision for yourself in retirement.