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Working with a financial expert can kickstart your savings through avenues you don’t even know. A financial advisor can help you identify ways to increase your retirement readiness without sacrificing your current standard of living through optimized tax-efficient investments.
Despite advisors offering a leg up, approximately 40% of workers said they didn’t know who they could go to for financial or retirement advice, and just one-third of workers and retirees work with a professional financial advisor according to the Employee Benefit Research Institute. Here are all the ways your retirement savings can benefit from the help of a financial advisor.
5 Ways Financial Advisors Can Affect Retirement Savings
To put it simply, a financial advisor is a professional who provides clients with financial advice. There are many types of financial advisors, but some of the most commonly used for retirement planning are certified financial planners (CFPs), chartered financial analysts (CFAs) and chartered financial consultants (ChFC). Areas of expertise and costs vary by type of advisor.
Financial advisors focus on retirement planning work with their clients to create long-term goals and outline what steps they need to take to meet those goals. As a result, financial advisors can benefit your retirement savings in the following ways.
1. Maximizing Tax Efficiency
Over time, your income and investments will—hopefully—grow. You’ll owe taxes on the profits from your investments, known as capital gains taxes, when you sell investments or assets. You can also benefit from making certain types of investments now that can reduce your taxable income. A good financial advisor or certified public accountant (CPA) will recommend tax optimization strategies to minimize your tax burden.
For example, a financial advisor may recommend one or more of the following strategies based on your income and tax bracket:
- Tax-advantaged accounts. Your financial advisor will help identify tax-advantaged accounts you can use, such as health savings accounts (HSAs) that allow you to contribute money from a pre-tax basis and grow the earnings tax-free. Your withdrawals can be used for qualified health expenses tax-free. And once you turn 65, you can use the HSA funds without paying the usual penalty for ineligible expenses.
- Backdoor Roth IRA. In some cases, an advisor may recommend converting a traditional IRA to a Roth IRA; you’ll pay taxes on the converted amount, but your future withdrawals in retirement will be tax-free.
- Maximizing tax deductions. A financial advisor or CPA can ensure you’re claiming all of the tax deductions and credits you’re eligible for to minimize your tax bill.
It’s hard to overstate how much of a difference proper tax planning can make in your eventual retirement balance.
If you invest $10,000 today and continue to contribute $20,000 every year for the next 30 years, earning a 10% average annual return with a 24% top marginal tax bracket, here’s what your final balance would look like based on the type of account you have.
A financial advisor can help you identify which accounts are available to you and determine how to prioritize your investing in each. High earning years may be better for contributing pre-tax dollars. Low earning years may be the time to contribute to Roth accounts and complete Roth conversions. A financial advisor will be able to tell you how much to contribute to each and when.
2. Asset Allocation
As an investor, deciding what types of investments to invest in and what percentage of your portfolio should be invested in each asset class—such as stocks, bonds and cash or cash-like assets—can be one of the most difficult and important decisions you can make.
A financial advisor will review your current financial situation and develop a portfolio based on your goals, age, current savings, monthly contributions and risk tolerance.
For example, the asset allocation for someone with decades until retirement may be 80% invested in stocks and 20% in bonds to take advantage of market growth over the long term. But someone closer to retirement age typically cannot take on so much risk, so their focus may be on preserving their money with modest gains. For those investors, their portfolios may be 85% bonds and only 15% stocks.
3. Portfolio Rebalancing
As you save and invest for retirement, your portfolio’s asset allocation can shift over time as market conditions change and the value of your investments fluctuate. For example, bond prices may decrease, driving down the value of the bonds in your portfolio, and stock prices may increase. You need to rebalance your portfolio to ensure it’s aligned with the right level of risk to maximize returns.
With portfolio rebalancing, your financial advisor will monitor your investments and adjust your portfolio by buying or selling assets to maintain the agreed-upon asset allocation.
Although you can rebalance your portfolio yourself, portfolio rebalancing can be a time-consuming process, and it requires constant monitoring of your investments. Having an advisor handle it instead can simplify your finances and make it easier to stay on track.
4. Handling Withdrawals
Once you enter retirement, you may be unsure of how much money you can safely withdraw from your retirement fund and the impact of those withdrawals on taxes. An advisor will help you create a withdrawal strategy that satisfies required minimum distribution requirements and also allows you to have enough income for your lifetime.
If you’re thinking about your money not lasting long enough, your advisor will also work with you to create a budget and spending plan. If your savings are insufficient for your retirement goals, your advisor may recommend other strategies, such as delaying retirement or reducing your withdrawal amount to extend your savings and supply your investments more time to grow.
5. Optimizing Social Security or Pensions
If you’re eligible for Social Security or an employer-provided pension, your financial advisor can assist you with navigating those benefits.
With Social Security, your advisor will work with you to determine when is the best time to begin receiving payments and, if applicable, how to handle spousal or survivor benefits. If you have a pension, an advisor can help you decide between taking a lump sum payment or accepting annuity payments.
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Planning for Retirement
Retirement planning can be a complex process, and if you find it challenging or overwhelming, the expertise of a financial advisor can be invaluable. Your advisor can provide you with a personalized, strategic roadmap to help you reach your goals. And as your needs change or major life events happen, your advisor can help you adjust accordingly so you can retire in comfort.
Even if you don’t find planning for retirement challenging, checking in with a financial advisor throughout your working years can help you ensure that you’re staying on track. A good financial advisor can help identify ways to make your financial life more efficient so you can save more without feeling deprived.
Domains
The CFMP advisory board has determined that a competent bank marketing professional's expertise includes the following domains:
- Data, Research, and Measurement
- Strategy
- Revenue Generation
- Communication and Brand
- Risk Management
Please review the CFMP Examination Outline and Informational Webinar for additional details.
Study Resources
While ABA recommends these resources as appropriate examination preparation, ABA does not certain that you will pass the exam by studying these materials alone. The CFMP exam assesses not only your knowledge of the Topics on the exam outline, but also your application of that knowledge. You should refer frequently to the CFMP Examination Outline when preparing for the exam.
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Google DeepMind has been working with generative A.I. to perform at least 21 different types of personal and professional tasks.
Credit: Gabriel Alcala
Google is testing generative artificial intelligence (AI) technology programmed to serve as a life coach following the merger of its U.K.-based DeepMind research laboratory with its Brain AI development team in Silicon Valley.
Materials reviewed by The New York Times indicate DeepMind has been developing generative AI to perform at least 21 personal and professional tasks, including providing life advice, ideas, planning instructions, and tutoring tips.
Anonymous sources said worker teams organized by DeepMind contractor Scale AI are evaluating the AI assistant's capabilities, including its ability to answer sensitive questions about life challenges.
According to Google, the program's creation feature could offer situation-based suggestions or recommendations, while its tutoring function can teach new skills or enhance current ones, and its planning capability can outline financial budgets and meal and workout plans.
From The New York Times
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The charm of entrepreneurship, with its guarantees of independence, creativity, and the capacity for financial achievement, has captivated the minds of infinite individuals. For those who have spent years as personnel in traditional paintings settings, the transition from being an employee to becoming a commercial enterprise proprietor represents a considerable and transformative adventure. This shift requires extra than only a exchange in activity identify – it needs a shift in mind-set, competencies, and approach. Nowadays’s technology uses task automation software to apply to a couple of jobs in a unmarried click. As you embark on this route, right here are key concerns that will help you navigate the transition efficiently:
1. Include a attitude Shift:
Shifting from the dependent environment of employment to the dynamic international of entrepreneurship calls for a shift in attitude. As a commercial enterprise owner, you’re answerable for placing goals, making strategic selections, and charting the path to your assignment. include a boom mindset that welcomes demanding situations, adapts to uncertainties, and views screw ups as opportunities for gaining knowledge of and improvement.
2. Pick out Your ardour and niche:
Entrepreneurship regularly flourishes whilst fueled through passion. reflect for your abilities, hobbies, and stories to discover a niche or enterprise that resonates with you. A deep information and true enthusiasm for your chosen subject could be critical in guiding your commercial enterprise’s direction and ensuring its success.
3. Broaden a solid marketing strategy:
A well-crafted marketing strategy serves as your roadmap to achievement. outline your business desires, target audience, services or products, marketing strategies, financial projections, and a clean plan for growth. A comprehensive business plan no longer only courses your movements however additionally draws ability buyers and creditors.
4. Acquire New talents:
Transitioning from an worker to a commercial enterprise owner often requires obtaining new skills. As an entrepreneur, you may need to put on more than one hats, from advertising and income to finance and operations. Continuously invest in your personal and professional improvement to adapt to the demands of running a business.
5. Community and searching for steerage:
Building a guide network is beneficial to your entrepreneurial journey. connect with fellow marketers, mentors, enterprise professionals, and business associations. Their insights and experiences can offer steerage, provide solutions to demanding situations, and assist you avoid common pitfalls.
6. Understand financial control:
Financial management is a crucial component of entrepreneurship. gain a clean knowledge of budgeting, cash drift control, pricing techniques, and taxation. Being financially savvy ensures the sustainability and boom of your business.
7. Embody hazard and Resilience:
Entrepreneurship is inherently unstable, but calculated dangers can lead to exceptional rewards. Be prepared to stand uncertainties, setbacks, and screw ups along the manner. Your capacity to evolve, pivot, and maintain resilience in the face of demanding situations will be a defining issue on your enterprise’s fulfillment.
8. Advertising and marketing and Branding:
Efficaciously advertising and marketing your enterprise and creating a sturdy logo identification are essential for attracting clients. develop a compelling on-line presence, have interaction with your audience through social media, and create a emblem that resonates with your values and services.
9. Paintings-lifestyles stability:
Entrepreneurship can be disturbing, often blurring the lines among paintings and private existence. Attempt to set up a healthy work-lifestyles balance to keep away from burnout and hold your nicely-being. Delegate obligations whilst possible and prioritize self-care.
10. Rejoice Milestones:
As you construct and grow your commercial enterprise, make an effort to celebrate milestones, each massive and small. spotting your achievements and development can Improve morale and encourage you to hold pushing forward.
Legal and Regulatory Understanding: Familiarize yourself with the legal and regulatory aspects of starting and running a business in your chosen industry. This includes licenses, permits, intellectual property rights, and compliance with local regulations.
Build a Strong Online Presence: In today’s digital age, having a robust online presence is crucial. Create a professional website, leverage social media platforms, and utilize digital marketing strategies to reach a wider audience.
Customer-Centric Approach: Prioritize understanding your target audience’s needs and preferences. Develop products or services that cater to their pain points, and engage in effective customer relationship management to build lasting relationships.
Seek Feedback and Adapt: Embrace feedback from customers, mentors, and peers. Use constructive criticism to Improve your offerings and make necessary adjustments to meet market demands.
Responsible Time Management: Entrepreneurship often demands longer hours and flexible schedules. Develop effective time management skills to ensure that you allocate time for tasks, priorities, and personal life.
Build a Supportive Team: As your business grows, consider building a team that complements your skills and fills in the gaps. Delegate tasks and responsibilities to individuals who share your vision and passion.
Continuous Innovation: Stay innovative by staying abreast of industry trends, adopting new technologies, and finding creative solutions to challenges. Innovation keeps your business relevant and competitive.
Manage Cash Flow: Cash flow management is critical for business survival. Maintain a clear understanding of your financial inflows and outflows, and plan for contingencies to ensure your business remains financially stable.
Seek Continuous Learning: The learning journey doesn’t stop after you become an entrepreneur. Stay curious, read industry literature, attend workshops, and seek out opportunities for ongoing education.
Stay Adaptable: The business landscape evolves rapidly. Be open to pivoting your business model, product offerings, or strategies based on market feedback and changing circumstances.
Long-Term Vision: Beyond short-term goals, develop a long-term vision for your business. Consider where you want to see your business in five, ten, or twenty years, and align your actions with this vision.
Stay Ethical and Authentic: Maintain ethical standards and authenticity in your business dealings. Building trust and a positive reputation within your industry and among customers is invaluable.
Overcoming Isolation: Entrepreneurship can sometimes feel isolating. Connect with peers and mentors, join entrepreneurship networks, and participate in local business communities to combat this feeling.
Adapt to Market Feedback: Pay attention to customer feedback, market trends, and emerging technologies. Being responsive to changing market demands positions your business for sustained success.
Celebrate Resilience: Entrepreneurship is a journey filled with highs and lows. Celebrate not only your successes but also your ability to persevere through challenges and setbacks.
The transition from employee to enterprise owner is a transformative journey that requires cautious making plans, adaptability, and a robust entrepreneurial spirit. With the aid of embracing those issues and staying dedicated for your vision, you may navigate the demanding situations and uncertainties of entrepreneurship and create a successful and enjoyable undertaking. don’t forget, each step you’re taking is a valuable part of your entrepreneurial evolution.
We offer special payment arrangements for students whose employers reimburse tuition after course completion.
You must submit documentation indicating your employer’s reimbursement policy and how much you’re eligible for before the beginning of each semester that the deferred payment option is used. Tuition or fees not paid by the employer are due on the regular payment due dates.
Deferred Payment Dates 2023-2024
- Summer 2023: Sept. 4, 2023
- Fall 1, 2023: Dec. 2, 2023
- Fall 2, 2023: Feb. 5, 2024
- Spring 1, 2024: April 29, 2024
- Spring 2, 2024: July 1, 2024
Under this option, you are responsible for the full tuition amount, whether or not the reimbursement is received. Additionally, a monthly finance charge of 1% will be assessed on open balances after the deferred payment due date. Payment must be received before the deferred deadline to ensure continued eligibility for deferment and prevent late fees and holds on future registration.
SPS provides a tuition deferment form (PDF) to fill out and submit to assist with the process. Direct questions or submit the completed form to Carolyn Merkel at 314-977-2405 or carolyn.merkel@slu.edu.
By Patrick Lynn
Rural school districts seeking to enhance professional development opportunities for their faculty and staff now have the chance to apply for $10,000 grants provided by the Harju Center for Equity in Education at the University of Wisconsin-Stevens Point.
To submit an application, districts should furnish the following materials by December 1, 2023, each limited to 250 words:
- A succinct, one-page overview of the district’s professional development requirements
- A brief outline detailing the intended use of the grant, encompassing a timeline and budgetary plan
- An explanation of the district’s present financial commitment to professional development initiatives
- Should the application be approved, the $10,000 grant will be allocated accordingly. Following the completion of the professional development activities, the district is obligated to furnish the Harju Center with an account of fund allocation towards advancing faculty and staff professional development.
- The district should prepare a concise, five-minute recorded video presentation.
The Harju Center for Equity in Education operates within UWSP’s School of Education and was established through a generous $5 million donation from alumna Dorothea Harju’s estate.
The center concentrates on mitigating educational disparities within Wisconsin by extending support to diverse and first-generation elementary education instructors. It also strives to empower current and future elementary educators to acknowledge and tackle persistent challenges, bridge achievement discrepancies, and surmount obstacles to furnish students with impartial, comprehensive, and adaptive instruction.
Go to www.uwsp.edu/harjucenter for more details.
