USA Today coverage: Retirement savings for the self-employed

Despite the benefits that self-employment offers, a recent study found that entrepreneurs and longtime business owners are running into difficulties when it comes to retirement savings. According to TD Ameritrade’s Self-Employment and Retirement survey, 40 percent are not saving regularly for retirement.

In a recent article for USA Today, I weighed in on why retirement savings for the self-employed is underutilized, the threats facing one who does not save, and what an advisor can do to help. “Most small-business owners aren't knowledgeable about retirement, because they focus on their business at the expense of everything else,” I offered. “For the first few years, it's nip and tuck. They are human resources, the accounting department, marketing department, and IT department.” Furthermore, the self-employed often invest all their profits directly back into their business as an alternative to a company retirement plan.

The following link will take you to the full article written by reporter Rodney Brooks –
“Self-employed face a retirement crisis”

Mike Piershale on “Mike in a Minute:” Holiday budgets

With the holidays in sight, Mike Piershale outlines budgeting plans in his latest “Mike in a Minute” segment. He reminds viewers of important financial strategies that will help over the short- and long-term.

Mike Piershale on “Mike in a Minute:” Year-end financial plans

On the latest “Mike in a Minute,” Mike Piershale discusses important wealth management plans for viewers to consider before the New Year. He outlines 401(k) strategies, recommends maximizing retirement contributions, and explains the importance of creating a solid estate plan.

Mike Piershale on “Mike in a Minute:” Year-end tax plans

For today’s “Mike in a Minute” segment, Mike Piershale weighs in on year-end tax tips to consider implementing over the coming weeks. Press play below to hear the most important strategy, and how changes in income can impact your tax and financial plans.

WSJ coverage: New Year, New Financial Plans

Despite the chaos, and the joy, that the holiday season brings, it is important not to let year-end financial considerations and deadlines fall by the wayside. Critical decisions that investors must contemplate include: boosting 401(k) contributions, funding a 529 college-savings account, considering IRA distributions, and making charitable contributions and gifts. However, these are only a few of the important year-end considerations worth discussing.

In a recent article for the Wall Street Journal, I weighed in on one critical year-end financial step that investors should be aware of: booking capital losses. One can use capital losses to offset any capital gains tax-free. “If you're carrying investments at a loss—say, mutual funds that have dipped several thousand dollars in value since you purchased them—you might consider selling them by Dec. 31 to realize capital losses,” I offered. “Then use these to offset gains from other sources.” Additionally, if an investor particularly likes these mutual funds for the long-term, they can always be bought back in the new year, 31 days after the sell.

The following link will take you to the full article written by contributor Lindsay Gellman – “Financial moves you should make by New Year’s.”

Thanksgiving Thank You

With the holidays upon us, we wanted to take the time to thank our clients and blog readers. It is our goal to provide you with outstanding services and insight, and we appreciate the confidence that you have placed in us as we work together in solidifying your financial objectives. We thank you for working with us and look forward to a successful New Year.

From everyone at Piershale Financial Group, we hope you have a wonderful Thanksgiving.

Part-time retirement and its impact on income

Earlier this month, I was included in a Financial Planning magazine article, written by reporter Martha White, which detailed how working part-time in retirement can alter a client’s overall financial plan. The piece covered elements such as Social Security, health care costs, portfolio changes, and the impact that working in retirement can have on taxes.

Upon entering retirement, it is typical that an individual or couple drops down one tax bracket. However, I explain that for those that choose to work during their golden years, if their income is higher, the taxes they pay will therefore be higher.

So, what strategies can you use to lessen your tax hit if you choose to work during retirement?

• Take advantage of all qualified plans:
• Maximize 401(k) contributions
• Check to see if you qualify to get a tax reduction on an IRA
• Don’t convert to a Roth IRA if you are close to retirement and/or in a tax bracket which is 25 percent or higher
• Consider an annuity

To read the full article for more insight, click here—Financial Planning, November 2013 Issue.