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Type of Plan 2015 2014 2013
401k Plan Limits for Year 2015 2014 2013
401k Elective Deferrals $18,000 $17,500 $17,500
Annual Defined Contribution Limit $53,000 $52,000 $51,000
Annual Compensation Limit $265,000 $260,000 $255,000
Catch-Up Contribution Limit $6,000 $5,500 $5,500
Highly Compensated Employees $120,000 $115,000 $115,000
Non-401k Related Limits
403(b)/457 Elective Deferrals $18,000 $17,500 $17,500
SIMPLE Employee Deferrals $12,500 $12,000 $12,000
SIMPLE Catch-Up Deferral $3,000 $2,500 $2,500
SEP Minimum Compensation $600 $550 $550
SEP Annual Compensation Limit $265,000 $260,000 $255,000
Social Security Wage Base $118,500 $117,000 $113,700

 

 

Three Legged Stool GraphicMost people are looking for a Lazy Boy when they think of retirement; that comes later! While planning for retirement I like taking the three legged stool approach.  There is a time and place for getting into the complexities but first consider simplicity. Providing for an income, healthcare costs and leaving a legacy. This three pronged approach will reduce a lot of the stress if you are wondering whether you have covered all the bases in retirement planning.

 

 

 

Lifetime Income

Numerous surveys of retired people indicate that their number one concern is running out of money. So it makes sense that eliminating the number one concern will make for a more fulfilling retirement.  As we have discussed in other posts contractual wealth for at least a portion of your investments and properly structured growth vehicles is a good mix. This mix of investments and investment vehicles also allows for an income that will increase to keep pace with the rising costs of retirement living.

 

Long Term Care Benefits

This important leg of the stool protects the income that we discussed above from being eaten up by healthcare costs associated with an extended or chronic illness. The landscape for how to provide this protection is ever changing or even evolving. This evolution is due to the fact that our life expectancy is increasing, however our quality of life during that time really isn’t. So, planning ahead for this time can really protect your income and assets; ultimately your quality of life.

 

 

Legacy

I did all on my own, so they can do it all on their own!!! Have you ever heard anyone say that? Have you ever made that statement? Well I hear that all of the time from parents in the 30’s 40’s and sometimes 50’s; but rarely to never do you hear that from grandparents. Fact is that we change over time and often those who thought nothing about leaving a legacy begin wanting to leave their mark on their family or the world.  This isn’t just a pitch for life insurance, though that is a great tool; there are multiple ways to create a lasting legacy. Regardless of how you choose to create your impression the earlier you get started planning on it the better.

 

Don’t be the guy who is trying to prop up on a rickety stool. Create a solid foundation by addressing the three legged stool; because one day when you are reclined in your Lazy-Boy…..you’ll be glad that you did!

 

 

Looking For Change

September 25, 2013 — Leave a comment

Girl Holding PlantNo this isn’t the change that we continually hear discussed during elections….. This is the kind that is real, that really happens and makes a difference. The types of change that I look for are so BIG that it usually makes people stop and take notice, change directions and maybe even plan a new course for their lives.

Whenever people experience life changing events they will often times seek out someone like me, a Financial Consultant.  They are often seeking assistance in helping them to adapt their personal finances into this new way of life. Some of these most common life changing events that make people contact me are listed here:

Man holding stack of paperwork with hand on calculator with longWork Related

  • Loss of Job
  • Change in Benefits Programs
  • Awarded Stock Options
  • Received a Bonus or Pay Increase
  • Buying or Selling a Business

 

Family giving dog a bath.Family Related

  • Married
  • Divorced
  • Had a Child
  • Aging Parents
  • Health Change
  • Buying or Selling a Home

MC900438779Economic Related Change

  • Legal Changes
  • Stock Market Volatility
  • Estate Tax Changes
  • Real Estate Values Change

So I would ask you to assist me in being on the lookout for changes that occur in your friends lives. An introduction to someone who can help may be just what they needed.