Company retirement benefits and pensions are usually not enough, and Social Security will make up only a small part of your overall retirement income.  Although it may seem that you will need less money to live on during retirement, this is usually not the case.  In addition to increased health care costs, leisure and entertainment costs tend to increase after retirement.

Our advisors will take a realistic look at what your expected retirement expenses will be and will develop a comprehensive retirement plan. 

Our Approach:

• We will help you figure out how much money you and your family will need to live on after you retire. 
• Then, we will develop a savings and investment strategy that will allow you to save enough to provide for your needs after you retire.
• In addition to planning your contributions to employer-sponsored retirement plans such as a 401(k), our advisors will work with you to set up additional accounts to allow you to save more and to grow your savings tax free.  Click here form more information on the most common types of retirement accounts.

Types of Retirement Accounts:

These are the most common types of retirement accounts.  PFA can help you set up and contribute to all of your retirement accounts.

• Traditional Individual Retirement Account (IRA):  this type of account can be established by an individual in order to save money for retirement on a tax-deferred basis.  Some contributions may also be deducted from your taxable income in the year you make the contribution, depending on your income level, tax filing status, and whether you are covered by an employer's retirement plan.  Anyone can set up and make contributions to an IRA provided your age is under 70.5 by the end of the year and you receive taxable compensation in that year.  Compensation is pooled between spouses, so both spouses can set up separate IRAs even if only one spouse works.  An IRA is an extremely easy way to save for retirement, and PFA can set one up for you with almost any bank or brokerage you choose.  Withdrawals from an IRA generally cannot be made without penalty until you reach age 59.5.  Early withdrawals are subject to regular income tax, as well as a 10 percent penalty. Early withdrawals from a Traditional IRA are not recommended except in extreme circumstances.
  
  
• Individual Retirement Annuity:  an individual retirement annuity functions similarly to a traditional IRA.  The primary difference is that an Individual Retirement Annuity involves purchasing an annuity contract or an endowment contract from an insurance company rather than depositing money into a savings or investment account.  Some Individual Retirement Annuities also provide life insurance protection.  An Individual Retirement Annuity must be issued in the name of the owner, and only the owner or the owner’s surviving beneficiaries can receive benefits or payments from the annuity.
  
  
• Roth IRA:  with a few important exceptions, a Roth IRA is essentially a non-tax-deductible Traditional IRA and is generally subject to the same rules as Traditional IRAs.  Roth IRAs have some unique features and requirements.  Qualified distributions from a Roth IRA are not considered taxable income and are, therefore, tax-free, and there are no required minimum distributions.  You can make contribution to a Roth IRA regardless of your age.  Eligibility to contribute to a Roth IRA is subject to special limits based on your income and tax filing status.  There is a five-year holding period from the time contributions are made for distributions to be tax-free and must be made on or after the date the account holder reaches age 59.5, unless the account holder becomes deceased or becomes disabled.    Roth IRA distributions can also be used to pay for qualified first-time homebuyer expenses.  Non-qualified distributions are taxed as ordinary income, however, the 10 percent early withdrawal penalty does not usually apply to Roth IRAs.