Retirement Planning

Today, individuals are primarily responsible for their own retirement security. Based on several inputs, Johnston Investment Counsel determines the amount of assets a client will need at retirement age. Some of the factors Johnston Investment Counsel can model include:

• A static or variable retirement income goal ($X for the first 10 years of retirement, and $Y thereafter),
• Different asset allocations,
• Different portfolio return scenarios, and
• Different retirement ages.

The next step is to determine what funding is required to achieve the asset goal. Once the contribution requirements are known, Johnston Investment Counsel needs to to determine which "bucket" is most appropriate. In other words, which combination of company-sponsored retirement plans ( 401(k) and Roth 401(k) ), individual retirement accounts (traditional or Roth) and/or taxable accounts will provide the best likelihood of achieving the asset goal.

One of the most significant issues that should be thoroughly analyzed is the use of pretax versus after-tax (Roth) accounts and how their use may affect retirement income.

 

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