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How do you see yourself in retirement…spending time with grandkids, traveling to exotic places, or maybe starting a second career? Retirement goals are distinctly your own, but everyone shares the same challenge of saving enough to make their dreams a reality. Here are some retirement planning tips to keep in mind: ​ Get started early. Young people usually don’t make saving for retirement a priority because it’s such a long way off. But, now is the time to get into the savings groove. Putting away even a small amount consistently helps to build a savings routine that may stick with you for life. It’s even more effortless if you have the opportunity to participate in a 401(k) or other tax-favorable retirement plan through payroll deduction at work. Saving early offers the potential advantages of a long time horizon and compounded earnings. Don't overlook matching contributions. Not only is it a good idea to participate in an employer retirement plan, it really pays to take advantage of any matching contributions your employer may offer. When your company matches your contributions at a certain percentage, it’s equivalent to getting free money for retirement. Know your cash flow and set goals. Any financial planning endeavor usually starts with an assessment of cash flow. You need to analyze what you’re earning and spending to help uncover money for retirement savings. Put it down on paper or record it electronically to help calculate a realistic amount to save after expenses are paid. You can identify areas to trim that will ultimately put more money in the bank, like paying down high interest debts. Documenting your budget also helps you project your expenses and estimate what you may need during retirement. Consider investing in an IRA. If you’ve taken maximum advantage of an employer’s retirement plan or you don’t have access to one, think about investing in a Roth or Traditional IRA. These accounts allow you save with tax-free growth or on a tax-deferred basis. Today, there’s an IRA to suit just about everyone’s objectives. Whether you’re investing in Traditional or Roth IRAs, your tax and financial advisors can help create the right IRA strategy for you. Organize your retirement assets. As you get older, you’ve likely accumulated savings in more than one place. You may have assets scattered among a number of different accounts, especially if you held several jobs over the years. If you own multiple IRAs and/or left retirement assets in previous employers’ plans, think about consolidating them into one IRA to reduce account expenses and make asset allocation easier. Your advisor can help you identify and organize all retirement accounts to create a holistic consolidation and asset allocation plan. Keep an eye on asset allocation. Diversification remains an integral part of your financial plan at every age. Working with your advisor, you can develop an asset allocation strategy that focuses on growth in the early years and balances growth with income in later years.

People often try to tackle financial events as they arise, inadvertently placing the rest of their goals at risk. If you were building a house, would you build it one room at a time, leaving the remaining structures unsound? No, you’d hire an experienced contractor to create a detailed blueprint that meets your objectives and follows fundamental principles. The same applies to financial planning…you need a complete plan to build a solid financial future. Hire a qualified professional. Infinity Certified Financial Planners™ are highly-trained and licensed professionals with years of financial services experience. They provide planning services for a set fee, so you can be assured their advice is rooted in your best interests. They get to know every aspect of your financial life and thoughtfully design a complete plan focused on your goals. Working with a knowledgeable, unbiased professional can give you the perspective you need to confidently control your finances. Start with a sturdy foundation. You can’t manage your money and direct it toward your life goals without first knowing where it’s going. That’s why we start the planning process by examining your spending habits, creating a personal budget, and defining objectives. We give you a clear picture of your cash flow, assets and liabilities, and net worth to form the basis of your financial plan. Your planner uses that to develop realistic strategies for building and maintaining wealth. Construct a balanced framework. Like the floors and walls form the framework of a house, elements of your financial world–like income, Social Security, insurance, college savings, retirement investments, and legal instruments–serve as the framework for a complete financial plan. We take a holistic view of all the interrelated parts of your plan using powerful online planning tools. Together, we assess your current income, holdings, allocations, and coverages to ensure that they align with your risk tolerance and support overall goals. You’ll learn practical ways to balance your current financial needs with long-term objectives. Stay involved and measure progress. A written financial plan not only identifies important planning opportunities, but it also provides key benchmarks to make sure your plan stays on course. Your advisor sets these milestones and encourages you to monitor your progress. Just like you’d visit the construction site as your home takes shape, your plan should be revisited to determine if adjustments are necessary. And, our customizable online tools make it easier to see your financial picture evolve.

Paying for your child’s college education is likely one of the most expensive events for your family. Rising tuition costs, which often mirror or exceed the rate of inflation, can make the education planning process seem daunting. Even if you haven’t had the discipline to save, all is not lost. Here are some practical tips to help you achieve your college savings goals. ​ Start saving early. It’s not hard to figure out that the earlier you start your kids’ college funds, the better your chances of reaching savings goals. By starting sooner than later, you’ll have time–and compounding gains–on your side. Additionally, the longer your time horizon for saving, the less impact market volatility may have on your investment portfolio. ​ ​ Don’t bank on financial aid. Some parents assume that their children will receive financial aid, so saving isn’t a priority. Because most financial aid comes in the form of loans, that strategy can end up saddling your child with substantial debt. As a general rule, saving money with even a modest return makes more financial sense than borrowing and paying interest. There are also many factors that determine whether or not you qualify for financial aid, including your assets, income, and number of children attending college. Your financial advisor can help you assess your situation to determine the right balance of savings and forms of financial aid. ​ Decide how to save. You have several options for education savings. Here are the main features of the most popular types of college funding accounts: 529 Plans A tax-advantaged college savings plan named after section 529 of the IRS code Individual states sponsor 529 plans and investment management is usually outsourced to an investment company Can be used to pay qualified education expenses, including tuition, fees, and room and board After-tax money grows free from federal–and often state–taxes and qualified withdrawals are also tax-free There are no age limits or income restrictions to start a plan, and the account holder stays in control of the money Contributions can’t be more than the amount needed to pay for the beneficiary’s qualified expenses If your kid decides not to attend college, you can transfer the account to a sibling Investment choices can be limited, and you can only rebalance the portfolio twice a year Coverdell Education Savings Accounts (ESA) Originally known as an Education IRA and renamed after the late Senator Paul Coverdell Can be used to pay qualified education expenses in not only colleges and universities, but also elementary and secondary institutions Like the 529 plan, ESA money grows tax-free and distributions for qualified education expenses are also tax-free Accounts can be started by those with annual modified adjusted gross income of less than $110,000 ($220,000 for a joint return) Contributions can be made up to $2,000 per year May offer a wider range of investment choices than 529 plans Custodial Accounts (UGMA/UTMA) Accounts that allow transfer of gifts to minors under the Uniform Gifts to Minors Act or Uniform Transfers to Minors Act Investments are held in the minor’s name, but managed by the custodian (i.e. parent), until the child reaches age 18 or 21, depending on the state. Income is reported on the child's tax return and taxed at the child’s rate Money can be withdrawn for any purpose, without having to get permission from the custodian, when the beneficiary is a legal adult The funds are not transferrable to another beneficiary ​ For complete information about plan guidelines and qualified education expenses, consult IRS Publication 970. ​ Think twice about raiding other accounts. You may be tempted to take money from your Roth IRA or other retirement accounts to pay college expenses, but this shouldn’t be considered a viable option unless you’re well funded for retirement. If you have more than enough retirement savings, you can consider taking money from a Roth IRA because of its tax- and penalty-free withdrawals that can be used for higher education. People also consider tapping cash value life insurance for education expenses, but this is rarely a good idea, due to high surrender charges and low investment returns related to these policies. Your best bet is to consult your financial and tax advisors about these options because there’s usually a wiser alternative. ​ Cover all your bases. When you’re in a time-crunch to come up with money for college, make sure you’ve thought of every last-minute strategy: Dig out those savings bonds that may have been overlooked Increase your savings by sticking to a personal budget [link to budget article] Consider less expensive colleges or take advantage of military education benefits, if your child completes active duty Encourage grandparent gifting, especially when it comes to 529 plan gift-tax advantages Steer your child toward working during college to offset some of the costs