Robindale Consultants
ROBINDALE CONSULTANT SERVICES
Empowered Through Financial Education
Federal Benefits Planning
Federal employees encounter numerous challenges in managing their federal employee benefits, particularly in grasping the intricate rules and regulations associated with retirement plans, such as the Federal Employees Retirement System (FERS) and the Civil Service Retirement System (CSRS). These systems encompass various components, including annuities, Thrift Savings Plans (TSPs), and Social Security benefits, making them difficult to comprehend and navigate.
In addition, federal employees preparing for retirement must carefully consider factors like inflation, taxes, and healthcare expenses and stay informed about legislative changes that could impact their retirement benefits. Given the complexity of these matters, federal employees must seek assistance from well-informed professionals and stay abreast of the latest developments in federal employee retirement planning and benefits.
State Benefits Planning
You’ve been dedicated to serving others as a state employee. As you look toward retirement, you’ll need a plan to optimize the different benefits your state offers.
The team at Robindale Consultants has the knowledge and experience to help take the complexity out of the complex world of state benefits.
Debt Management
Achieve financial security and clarity as you plan for retirement. If you are burdened by long-term debt, including mortgage, credit card, and student loans, it may seem impossible to overcome. However, with the assistance of Robindale Consultants, you can discover effective money management strategies that allow for the growth of savings and reduction of debt. By improving your cash flow and increasing savings, you can retire with tax-favored income that meets your long-term needs. Our methods can help you become completely debt-free, including paying off your mortgage, in nine years or less. Additionally, we can help you achieve a variety of short and long-term financial goals, including growing your wealth, obtaining financing without traditional sources, and affording college expenses.
Social Security Planning
Will Social Security be available for me in the long term? Due to political conflicts and extensive media coverage, there is a prevailing belief that Social Security may not be a reliable source of retirement income. Consequently, many couples overlook it in their financial planning. This widespread attitude of skepticism suggests that individuals should not rely on Social Security as a secure form of retirement funding.
However, let’s clarify the facts. For the majority of married couples, Social Security is their primary retirement asset, offering numerous advantages such as annual inflation adjustments, tax benefits, a maximum of 85% taxable income, lifetime payments, and government backing. In reality, it typically constitutes 20% to 50% of middle-income couples’ retirement income, often totaling over $500,000 in lifetime benefits. This is a substantial amount of money for most individuals, making it prudent to maximize this asset if possible.
It is crucial to recognize that deciding when to start receiving Social Security benefits is a significant and impactful decision for your retirement.
In light of the recent departure from conventional pension plans, for numerous members of the Baby Boomer generation, Social Security stands as their sole source of secure, lifetime income. As retirement nears, it is crucial to carefully consider the available options: Is there an immediate need for a consistent monthly income, or is it feasible to postpone collections in order to receive larger monthly disbursements at a later time?
Both opting for early receipt of Social Security benefits and deferring them until the designated full retirement age or beyond present certain advantages and disadvantages. Our team of professionals at Robindale Consultants is equipped to conduct a comprehensive assessment of your alternatives and assist in identifying the most advantageous strategy for optimizing your Social Security benefits.
Insurance Planning
Insurance planning is the process of making and implementing decisions to protect individuals and families from unforeseen financial loss. It involves evaluating risks and selecting the right type and amount of insurance coverage to meet those needs. Insurance planning is a form of risk management that safeguards against the costs associated with accidents, disasters, disability, illness, and death.
Tax Optimization
Tax optimization goes beyond planning. It requires management of your financial activities to achieve the most tax-efficient outcomes. Strategically timing income and expenses is a crucial aspect of tax planning and optimization. By carefully timing when you receive income and when you incur expenses, you can lower your tax liability. It's crucial to analyze your financial situation and consult a tax optimization professional to determine the best timing strategies for your specific circumstances.
Account Rollovers & Protection
TSP
401k
IRA
ROTH IRA
403b
Account Formation
Traditional IRA
Roth IRA
SEP IRA
Weighing your Retirement Account (IRA) options?
If you have earned income, you can open and contribute to an IRA, even if you have a 401(k) plan through an employer. The IRS limits the combined total you can contribute to all your accounts in a year while still getting tax advantages.
The two most common IRAs are traditional and Roth IRAs. Here’s a quick breakdown of their contribution limits, tax treatments, and distribution requirements:
The experts at Robindale Consultants can help you explore traditional and Roth IRAs to determine which type is right for your unique financial situation.
Trust & Wills
One of the most common questions estate planning attorneys hear is “Do I need a will, a living trust, or both?” Often, the question is asked by a new client who has been doing research on estate planning, or who has been advised by a friend or family member. We are always happy to hear this question, because it is a great way to begin exploring our clients’ needs. The response is usually a question in return: “What do you want your estate plan to do?”
The reality is that wills and trusts are tools. They accomplish many of the same things, but each offers advantages that the other does not. Your estate planning attorney’s first duty is to help you identify your goals for your estate plan. Then she can help you choose the best tools with which to achieve those goals.
What’s the Difference Between a Will and a Living Trust?
You can use both a will and a trust to distribute your assets to your loved ones after your death. However, they do so by different mechanisms.
Assets left to others in a will must go through probate. Probate is the court-supervised process of settling an estate. Depending on the size and complexity of the estate, an informal probate process may be available. Many people prefer to avoid probate, so they opt for a living trust—more on that in a moment. However, it is still important for most people to have a will, because there are things that a will can do that a trust cannot.
One important function of a will is to name a guardian for one’s children. If you have minor children, you must plan ahead for who would be responsible for their care in the event something happened to both parents. A guardian named in a will does not have legal authority until appointed by the probate court, but naming a guardian in your will can prevent unnecessary probate litigation between family members over who would care for your child. You can also name a conservator in a will to manage your child’s assets until your child becomes a legal adult. The guardian and conservator may be the same person or different people.
You can also use a will to disinherit certain people who might otherwise inherit from you, or to leave specific assets to particular people. Also, a will typically has a “residuary clause” that disposes of any of your property not specifically described in the will. So, if you have a will, you can be confident that all of your assets, no matter when you acquire them, will be distributed according to your will.
Now, let’s talk about living trusts. A living trust is a legal relationship created by a trust document. A grantor (also called a settlor or trustmaker) creates and funds the trust. (Unlike a will, you need to take additional steps to ensure that your assets will be disposed of by a trust.)The trustee manages trust assets for the benefit of a beneficiary or beneficiaries.
During your lifetime, you can act as grantor, trustee, and beneficiary of the trust assets. Essentially, you can use, enjoy, and transfer assets just as if they were in your sole name, not the trust’s. So why bother to make a trust at all?
When you create a trust, you name a successor trustee and remainder beneficiaries. The successor takes over managing the trust when you are no longer able to, and the remainder beneficiaries benefit from the trust after your death. There are multiple potential advantages to this setup.
One is that it protects your assets if you become incapacitated, such as due to Alzheimer’s disease or other dementia. Your successor trustee steps in to manage your assets for your benefit, and after your death, for your remainder beneficiaries.
Whether or not you need a trustee to take over during your lifetime, upon your death, assets in your trust do not need to go through probate. You can use a living trust to minimize the size of your probate estate or avoid probate altogether, if that is important to you.
Another important reason to consider a trust is if you have minor children, or young adult children whom you do not feel are mature enough to receive their inheritance all at once. If you have only a will, your children become entitled to their entire inheritance at the age of 18, regardless of how responsible they are. A living trust allows you to set the terms under which distributions will be made from the trust for your child’s benefit, and when they will be entitled to receive all of the assets in the trust. The successor trustee manages assets for your children, so there is no need to have a conservator appointed (though your children will still need a legal guardian if they are minors).
In addition to the advantages above, a trust offers privacy. If you have a will and your estate goes through probate, all of your heirs at law are entitled to a copy, even if they are disinherited. If you have a trust, your beneficiaries are entitled to certain information about the trust, but the trust document itself can be kept private.
Will vs. Trust, Trust vs. Will…or Should You Have Both?
Despite the increasing popularity of living trusts, not everybody needs one. For instance, if you have a relatively modest estate with only one or a few heirs, and your children (if any) are adults, you might decide you don’t need a living trust; you can use other tools, such as a durable power of attorney, to plan for incapacity.
However, for many people, a living trust provides greater peace of mind, especially if they want to avoid probate or have young children who may not be prepared to manage their inheritance wisely if they receive it in full as a young adult.
Often, it is a good idea to have both a will and a living trust. You can use the will to name a guardian for any minor children you have, something you cannot do with a trust. The trust will then ensure your children’s assets are managed by the trustee as you have directed.
You can also use a will to fund the trust with any assets you did not place in the trust before your death. A “pour-over”will leaves any assets in your estate that were outside the trust to the trust. Those assets are then managed by your successor trustee for the benefit of your beneficiaries.
We recognize that all of this is a lot to think about! The good news is that you don’t have to figure it out alone. Just schedule a consultation with your estate planning attorney and discuss what you’d like your estate plan to achieve. Together, you can decide whether your needs will be best served by a will, a trust, or both.
Income Protection
Like many Americans, perhaps you have a job you love, a beautiful home to live in, you’re paying your bills and you’re saving for retirement. But what happens if you face a serious illness, disability or accident that leaves you unable to work? What happens to your income – and your family’s financial well-being?
It’s difficult to think about, but the financial impact of your premature death, critical illness, or injury could be staggering. Will your loved ones be able to keep paying the mortgage on your dream house without your income? What if you need to pay for long-term care costs or accessibility modifications? A financial product with living benefits can help you protect those you love and the place they call home if the worst happens.
With a proactive approach to these very real threats, you can ensure the wealth you and your family have worked so hard to build remains available any time you need it. Connect with our experienced team today to explore your options.