IRA Planning

A powerful and sometimes overlooked vehicle for retirement savings is the IRA.

If you are like most of who I advise, you will need to replace at least 80% of your pre-retirement income with dollars from several sources like Social Security, a company pension or savings plan, and other personal savings. Financial experts speculate that Social Security will provide only a small percentage of the total amount retirees may need to maintain their pre-retirement lifestyle, which means your personal retirement savings is a crucial component in helping you pursue your retirement needs.

An IRA is an individual retirement account to which you can contribute up to $5,500 annually ($6,500 if you are over 50 years old). The great advantage of an IRA is that your investments’ earnings are tax-deferred until withdrawn. Also, compounding of interest makes your money work harder because you earn interest not only on your contributions to your account, but also on the interest those contributions generate.

Mission City Investment Services offers access to traditional and Roth IRAs. The significant difference between the two is that contributions are tax deductible for the traditional IRA,* while a Roth IRA may not offer tax-deductible contributions, but provides for tax-free distributions.**

There are obvious benefits to both, and I can help you find the right IRA to help you address your retirement investment needs by analyzing factors such as your current and future tax bracket and the number of years it will take you to retire.

I can also assist you if you are expecting a lump–sum distribution through your employer’s retirement savings plan. If you have recently changed jobs or are about to retire, an IRA rollover provides the advantage of preserving the tax deferred status of your assets, while many times offering you a wider selection of investments.

It would be my pleasure to meet with you to discuss the opportunities afforded by IRAs and other retirement savings plans, and help you work toward your long-term financial goals. Please connect with me by email or phone at (408) 244-5818 ext. 150 to schedule a no-obligations consultation.

*For deductible contributions, certain income limits apply.
**Federal taxes only. Individual states may vary. Please consult your tax advisor.

Mission City Investment Services

1395 Franklin Street
Santa Clara, CA 95050

P: (408) 244-5818 opt. 7

F: (408) 244-9390

cdavis@missioncityinvest.org