Retirement Planning Tips

To navigate the array of options you choose and tap into their benefits, it's crucial to seek expert advice from professionals. Tax regulations are intricate and ever-changing, while the investment landscape presents significant challenges. Decisions like timing your Social Security benefits and transferring retirement assets into an IRA demand careful planning.

1. Envision Your Retirement Vision:
   Picture how you want to shape your golden years. While some embark on travel, strengthen bonds with loved ones, contribute more to their community, or dive into hobbies, your retirement journey is yours to create. 
    
2. Estimate Your Retirement Costs:
   Craft a clear plan of the expenses associated with your desired lifestyle.
   
   Recognize the possibility of changing residences during retirement. Plan for today's essentials, including healthcare not covered by Medicare, nourishment, attire, transportation, unforeseen situations, and inflation.
    
3. Save as much as you reasonably can and invest appropriately. True, particularly if you have in mind a modest lifestyle in retirement, it’s possible to “over-save.” Yet people often underestimate – sometimes significantly – what their desired lifestyle will cost. Others may be quite realistic about what they will need but have difficulty putting enough aside over the years or fail to manage responsibly whatever wealth they have been able to amass. Whatever your situation, building your nest egg should be a high priority.
    
4. Financial Avenues: 
   Explore various ways to enhance your financial resources during retirement. Options include:
   • Defined-benefit pensions – These are traditional pensions and even though fewer and fewer workers have this perk, it is quite a valuable one, as your employer covers the full cost and what you receive will usually be very reliable. Payments are fully taxable as ordinary income.
   • Defined-contribution plans – These are sponsored by employers and generally take the form of so-called qualified retirement plans, such as 401(k) and 403(b) plans, or some types of IRAs, such as SEP and SIMPLE IRAs. These plans feature limits on how much can go in each year and are typically funded with some combination of contributions made by your employer and pre-tax portions of your salary or wages. Account balances grow tax-free, but distributions are fully taxable as ordinary income.
   • Traditional IRAs – Depending on your level of income, traditional IRAs can be funded with your own pre-tax money or, less commonly, after-tax money. Traditional IRAs can also receive money “rolled over” on a tax-free basis from employer sponsored plans, such as 401(k) plans. Account balances grow tax-free. When distributions from a traditional IRA are taken, they will be taxable as ordinary income in proportion to the amount of pre-tax money you contributed or rolled over.
   • Roth IRAs – These, too, are funded with your own money, specifically after-tax dollars. This means that both earnings and distributions come out tax-free. Also, whatever remains in the account grows tax-free. Note: Some employers offer Roth 401(k) plans, although these are relatively rare.
   • Tax-deferred annuities – As the name suggests, after-tax money of your own that you invest in these products grows tax-free. Any increase in value beyond the amount you invested is taxable as ordinary income when distributed.
   • Individually owned savings and investment accounts, certificates of deposit, etc. – These are funded with after-tax dollars, plus whatever you earn is taxable. Some of these investments produce capital gains, which are generally taxed more favorably than interest and other sorts of ordinary income.
   • Employment – For some people, “retirement” means continuing to work a bit longer, albeit on a part-time basis. Similarly, working full time for an extra year or two can make additional assets available for use in connection with one or more of the options above.
   • Social Security benefits – Despite concerns about the long-run health of the social security system and the size of benefits one can count on, this extremely common form of retirement cash flow definitely needs to be taken into account.
   • Non-financial assets – Things that save you money can be just as valuable as a stream of payments. Examples would include good health, smart purchasing, and having loved ones nearby and available to help when needed.
5. Discover Retirement Cash Flow Strategies: 
   When it comes to securing your retirement, don't miss out on opportunities to support CRI. Even if you're unable to contribute more to your IRA or qualified retirement plan, you can enhance your retirement income through these avenues:
   • Charitable Gift Annuity - Enjoy tax-favored payments for life while gaining an immediate income tax charitable deduction. Opt to start payments immediately during retirement or defer them if you're still working.
   • Charitable Remainder Trust -  Offering both income for life and increased flexibility, this option suits those seeking a future income source. It also grants an immediate income tax charitable deduction.
   • Deed Your Property to CRI – Transfer ownership of your residence, including vacation homes, to CRI while retaining a life estate. This arrangement lets you continue using the property as desired and provides a larger income tax charitable deduction the older you are.
   • Qualified Charitable Distribution (QCD) - If you're aged 73 or older, contribute up to $105,000 annually to CRI directly from your traditional or Roth IRA. This gift isn't counted in your income. After 73, a QCD satisfies your minimum distribution and permits a tax-free gift of up to $105,000 to CRI.
   • Strategic Use of Retirement Assets -  Leverage your IRA or qualified retirement plans for current donations to CRI if you're over 59½. This approach requires careful planning but can be highly effective.

As you navigate retirement planning, be sure to give due consideration to your beneficiary designations. Retirement vehicles like defined-contribution plans, tax-deferred annuities, and numerous IRAs house untaxed income. This signi-fies the importance of strategizing your designations meticulously. While untaxed amounts left to family members and individuals will incur taxes upon receipt, choosing CRI as a beneficiary ensures tax-free acceptance.

Embrace a tax-wise path by combining these savings with provisions for your heirs. By directing specific retirement plan assets toward a gift annuity or a charitable remainder trust as your journey concludes, you fulfill and support CRI’s mission.

Take this opportunity to join us in our quest to create a world immune to cancer. Reach out to us for guidance and support.