Your RETIREMENT Plan
We are a Defined Contribution (DC) Plan specialist who seeks to deliver comprehensive analysis and quantifiable results for plan fiduciaries.
Delivering a Plan Governance Index or PGI™ for your plan can help protect you, your company and your investment committee.
Let us show you how we help protect you address a DOL/ERISA audit.
ERISA is a law based on “process.” The PGI™ metric Process of Investing is designed to provide a broader standard beyond the prevalent practice of evaluating investment performance and associated fees, which is necessary but maybe insufficient from a prudence perspective for a Plan Fiduciary.
There are three areas of concentration: Process of Investing, Plan Administration, and Participant Outcomes. We gather the necessary documents, have the Plan Sponsors answer some survey questions and then input our findings to get you your PGI™ score.
What is your Fiduciary 401(k) Score? Let us help you get one. Set an appointment to talk today by clicking this link
Farrall Wealth’s Retirement Plan Services offers a process that seeks to optimize plan efficiency and structure by utilizing seasoned industry business professionals to evaluate and discuss best practices.
After helping to establish an investment committee, our five step process includes analysis of overall plan structure, development of strategy, formulation of desired participant experience, and a rigid assessment of investment options monitored monthly and discussed quarterly.
Our goal is to protect plans from penalties and litigation by observing and complying with financial rules and regulations as well as establishing a fiduciary audit file that helps to insulate the plan.
- We help manage and seek to minimize total plan costs while retaining the value of the plan.
- We facilitate intense due diligence on all investment offerings through a strict analysis process designed by the investment committee.
- We establish a Participant Communication Statement to help educate participants and increase employee satisfaction and participation.
With this process we delegate fiduciary plan requirements, help to reduce plan anxiety, establish an efficient and effective investment process, and create a greater educational and financial planning experience.
Group retirement and savings plans
Business owners can use group retirement and savings plans to help attract and retain quality employees.
Both business owners and their dedicated employees are working towards a safe, secure future. Either provided independently or paired with group benefits, a group savings plan is a convenient, flexible and affordable way for employers to help employees reach pursue long-term financial goals.
Employees gain instant tax savings for their retirement plan contributions, since they are made using pre-tax payroll deductions. They also receive the financial confidence that comes from knowing every month they are building towards retirement.
We help business owners and their valued employees choose group retirement and savings products. Choose from products like:
- 401(k) Plans
- Simplified Employee Pension Plans
- Qualified Retirement Plans
- Other retirement savings plans designed specifically for employee groups
Contact us today to learn about how group retirement and savings plans can benefit your business.
401 (k) Retirement Plans and Individual Retirement Plans
Everyone looks forward to retirement, but not everyone looks forward to planning for it. A strong financial plan is aimed to take the hassle out of this process and secure a balance of investment products to work towards your retirement goals.
While most working Americans will receive Social Security benefits, in most cases, they will not be sufficient to provide a comfortable retirement income. Depending on personal circumstances, either a 401(k) retirement plan or an Individual Retirement Plan can help in the pursuit of a more sizeable retirement account.
401(k) Retirement Plans
Employer-sponsored 401(k) retirement plans offer several benefits, including potential employer contributions. Enjoy tax savings by setting aside a portion of pre-tax salary in a tax-deferred investment account, which has the potential to generate compound interest. Depending on the type of plan selected, 401(k) plans can also offer yield potential from a variety of investment options.
- Working together with a financial planner, decide the amount and frequency of 401(k) contributions while taking into consideration contribution limits and employer requirements. Some advantages include:
- Employer contributions in many cases
- Contributions taken from pre-tax salary allow for a reduced tax rate (Traditional 401K)
- Contributions taken from post-tax salary allow for tax free growth potential if taken in retirement (Roth 401K)
- Tax deferral of earnings with income and growth potential
- The opportunity to select from a variety of investment products
Along with the protection offered through insurance and the goal setting provided by investment choices, money management strategies can help manage savings on a daily basis.
From mortgage payments to tax savings, a strategy for managing money effectively involves a consideration of individual contexts.
- Tax Services
- Succession Planning
- Financial Planning for Business Owners
- Business Succession Planning
Depending on an individual’s stage of life, chances are that person has a distinct approach to saving. New graduates or young couples have different needs than retirees or mid-career families. But no matter the situation, a financial planner can help develop financial habits that will lay a strong foundation for savings.
Younger individuals and couples have a number of benefits in terms of financial management. A long investment horizon, combined with few responsibilities, can make for an excellent financial base. A strong financial plan builds on these advantages, while at the same time considers the impacts of a debt load that might include student loans, car payments or perhaps a mortgage.
Couples planning for a first child enter into a new level of commitment—both personally and financially. Learn how to save for a child through specialized insurance and investment products, such as a 529 Qualified Tuition Plan.
Mid-career professionals typically have higher incomes than younger investors—but they also carry more responsibilities. From mortgage payments to a child’s education, consider a financial plan that balances needs with obligations.
Retirees have worked hard at their careers, and now is the time for relaxation and celebration. Chances are children have moved from home, the mortgage is mostly paid off and a few investments are coming to fruition. However, income levels may have dropped after retirement. Find out how to manage finances in a way that allows full enjoyment of the fruits of a career of hard work.
In short, no matter an individual’s life stage, it is important to balance savings and investing with other commitments.
No one likes taxes. But the advice of a financial planner can help with the selection of products and services that help ease the burden.
Charitable contributions, life insurance policies and investment products purchased through products like 401(k) Retirement plans or 592 Qualified Tuition Plans can all be useful tools in an effective tax strategy. It is important to design a tax plan that fits one’s personal needs.
Choose from a variety of products and services, such as:
- Income-splitting for spouses or common-law couples.
- Charitable donations, which benefits important not-for-profit work and allows donors to maximize tax credits.
- Life insurance products that build tax-advantaged capital for retirement.
- Investment products that provide for tax benefits, such as those purchased through 401(k) Retirement Plans or 529 Qualified Tuition Plans.
Contact us today to learn more about tax related products and services that are specifically tailored for your needs. This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.
Preparing for succession after death is a difficult issue to discuss, but it is also an important part of any comprehensive financial plan.
A financial planner can help individuals and their loved ones approach succession planning in a constructive manner that helps to ensure they avoid problems and are well cared for in the event of death. The process involves two main considerations: life insurance and preparing a will.
Life insurance can ease the financial burden and provide resources for loved ones in the event of death. A lump-sum payment can be used for mortgage costs or to supplement lost income, helping successors during a difficult period. Financial resources and stability can make it easier to cope with the loss of a loved one.
A written will provides a means to guide loved ones through the succession process. By naming executors and providing instructions on the distribution of an estate, surviving loved ones avoid having to guess the wishes of the deceased. Rather than state law determining how assets are to be divided—a situation that can result in lengthy court proceedings—a clear, carefully considered written will provides clear instructions to successors. Save loved ones the stress of dealing with financial issues by planning for succession as soon as possible.
Contact us today to discuss succession planning in more detail. This information is not intended to be a substitute for individualized legal advice. Please consult your legal advisor regarding your specific situation.
Buying a home can be an exciting purchase—but it is also a big decision that will have a major impact on financial planning. Whether a one-bedroom condominium or a five-bedroom house, a well-planned a mortgage strategy must fit its owner’s unique needs and other financial responsibilities.
From choosing the right time to buy a house to deciding whether it is even a good idea, a financial planner can help with this important decision. Assessing all the costs involved—from taxes to renovations—can help determine whether taking out a mortgage makes sense.
If you are considering taking out a mortgage, contact us today to discuss how to do so in a way that best fits your situation.
Business owners face unique challenges—and opportunities—in terms of financial planning. It takes hard work and careful planning to develop ideas into a successful business: continue that tradition by choosing a financial planning strategy that takes advantage of your unique situation.
For business owners who are considering moving to self-employment, a comprehensive plan can help with the adjustment from a situation where a previous employer might have provided benefits, such as health or life insurance or a company pension. Life and disability insurance can be difficult to purchase at first, since many insurers want two years of tax results. As well, self-employed people can gain tax write-offs for some health insurance premiums.
For new business owners, a financial planner can help negotiate a bank loan or line of credit to help fund office space, materials and other business investments. Explore options to most effectively secure these start-up expenses.
No matter what stage of growth your business is in, contact us today to design a tax-efficient business planning strategy.
After working hard to develop a business, it is important to also enjoy the results. Many entrepreneurs spend years of focused effort building up a business, but then fail to consider how to make the transition to retirement. A financial planner can offer professional advice in how to plan an effective business succession strategy.
For family businesses, a formal management succession strategy can help ensure a business stays in the family over generations. Depending on the level of involvement of family members, alternative bequests can help make decisions with those who do, and those who not, want to continue being involved in the family business.
Entrepreneurs can work to turn equity in the business into capital that can be used to fund retirement. Business owners can design tax-effective retirement strategies, such as using life insurance policies, paying business founders a salary, or arranging for an heir or heirs to slowly buy up ownership shares.
Life insurance is a consideration when planning business succession. If the founder is nearing the end of his or her life, a well-planned life insurance policy can help successors transition into business owners. Upon death, successors face estate taxes on business values of more than $500,000—with the tax-free amount potentially offset by any capital business losses the owner declared during his or her lifetime. Life insurance is one way that successors can cover the remaining amounts.
Smaller businesses may not need to pay estate taxes, but can still benefit from a plan that ensures an equal legacy for their successors. A financial advisor can help entrepreneurs plan an inheritance that is fairly distributed among all loved ones.
Contact us today to discuss strategies for business succession.
Farrall Wealth and LPL Financial do not offer tax or legal services.