Retirement Planning

Start where you are

Whether you’re just starting to think about saving for retirement or already have money set aside, we can help you put your investments to work. Gosho Financial Group creates custom investment plans, choosing individual stocks to optimize your returns.

Plot a course for the future 

We look at your financial picture and help determine how much income you’ll need to live comfortably in retirement. We consider Social Security and pension benefits to determine how much investment income you’ll need each month after you stop working. From there, we work backward to develop a retirement savings plan to get you where you need to be.

Passive income in retirement

As people live longer, reaching the end of retirement savings before the end of life is a concern for many. At Gosho Financial Group, we help our clients invest for passive income. If you can live off the income from your investments, it preserves the principal and ensures your financial security, no matter how long you live.

Retirement Tax Planning

Taxes can take a significant bite out of your income in retirement, even if you’re in a lower tax bracket. We consider the tax implications of your investment choices to reduce your tax burden when you need the funds the most.

Tax-deferred investments

Retirement investments like IRAs and 401(k)s allow you to save money pre-tax. You don’t pay tax on investment returns until you retire and begin to draw down your funds. This can be advantageous, especially if you’re in a significantly higher tax bracket now than you will be when you stop working. 

However, there’s a downside to deferring your taxes. You’ll pay income taxes on the money you take out later rather than the significantly lower long-term capital gains tax rate you would otherwise owe on investment income. Fortunately, there is a better way.

Your investment plan is also your retirement plan

Our retirement planning services include minimizing your tax burden. We determine the best timing for moving money out of tax-deferred accounts and help you make the switch. That might mean shifting from a traditional IRA to a Roth IRA or to an individualized portfolio of stocks chosen to maintain your lifestyle in retirement.

A Gosho financial plan is a meticulously selected set of stocks designed to meet your risk profile while delivering passive income and fortifying your savings. We can tailor a plan to work within many types of retirement investments, including employer-sponsored plans.

IRA

An individual retirement account (IRA) is a retirement account you self-fund. Your contributions aren’t subject to income tax and can reduce your current tax bill. Returns accumulate tax-free; you pay income tax on any amounts you withdraw. If you withdraw money before age 59 ½, you pay a 10% penalty in addition to income taxes.

You can invest any amount into your IRA, but only a specified amount is excluded from your current income taxes. You may want to put away more than the IRA maximum each year, especially if you are nearing retirement age.

401(k)

An employer-sponsored 401(k) is the most common type of retirement plan. Like an IRA, you make pre-tax contributions to the plan. A 401(k) allows you to contribute a specified amount from each paycheck or a percentage of your salary, and many employers make matching contributions. You can set aside significantly more pre-tax in a 401(k) than in an IRA.

If your employer matches your 401(k) contributions in whole or in part, you should take advantage of this benefit. However, it is still a good idea to get assistance from a Certified Financial Planner to manage your account for optimal returns.

Roth IRA

A Roth IRA is a more flexible IRA. Your contributions are after-tax, and you can withdraw funds after five years without penalty, even if you’re under 59 ½. Withdrawals from a Roth account aren’t subject to income tax, and unlike a traditional IRA, you can continue to make contributions after age 70 ½.

403(b)

A 403(b) plan is similar to a 401(k) but is offered by hospitals, nonprofits, or schools. These plans often act more like annuities, providing defined benefits after retirement, but they may be less flexible if you need a loan or early distribution. We can help you determine the best retirement investment mix, including 403(b) plans.

457(b)

Another income deferral plan, 457(b), may be offered by state or local governments or tax-exempt organizations.

Solo Defined Benefit Plan 

The Solo Defined Benefit Plan offers self-employed individuals and small business owners an aggressive retirement savings option, allowing for substantial contributions tailored to achieving a desired retirement income level. Ideal for professionals aged 50 or older, this plan enables annual contributions of $80,000 or more over at least five years, typically for those with minimal employees. Suited for individuals seeking rapid retirement asset growth, such as highly compensated professionals, consultants, business owners, partners, and key employees in their prime earning years. Contributions are fully tax-deductible within IRS guidelines, with earnings accumulating tax-deferred until withdrawal. This plan relies on employer contributions, recalculated annually based on factors like age, compensation, and retirement age. Any adjustments to contribution levels can be made as needed, including provisions for eligible employees if applicable.

Solo 401k 

This plan is for the business owner with no employees. The business owner wears two hats in a 401(k) plan: employee and employer. Contributions can be made to the plan in both capacities. The owner can contribute both: Elective deferrals up to 100% of compensation (“earned income” in the case of a self-employed individual) up to the annual contribution limit: $69,000 in 2024, or $76,500 in 2018 if age 50 or over; plus Employer non-elective contributions up to: 25% of compensation as defined by the plan, or for self-employed individuals

Other investments

You don’t have to limit your retirement savings to accounts designated for that purpose. At Gosho Financial Planning, we develop custom portfolios to provide passive income, allowing you to preserve your quality of life and your savings while enjoying your golden years.

It can be hard to think about the future when a thousand things need your attention today. You’re putting money into your employer’s 401(k) plan every paycheck, so you’ve taken care of your retirement, right? Unfortunately, no, but you don’t have to face the challenges alone.

Securing your financial health through retirement is crucial, and you must think about it now, whether you are retiring in three years or thirty. Here are some pitfalls you can avoid when you get help with your retirement from an experienced financial advisor.

Short-term thinking

Retirement can feel far away when you’re in your 30s, 40s, or even 50s. But the earlier you start saving, the longer your investments will have to work for you. 

Relying on a windfall

Inherited wealth or an IPO can be a great gift, but it can work against you if you use the promise of future funds as an excuse not to save today. Plus, you need a plan for your windfall so it serves as a building block for future wealth rather than a resource that dwindles over time.

Trusting far-away fund managers with your investment strategy

Your company’s 401(k) plan may offer a range of mutual funds, but none of those funds is set up with your situation in mind. A custom retirement plan, crafted to meet your financial needs and life goals, is a better choice.

Not calculating your retirement needs and calibrating your investment plan 

Investing what you can in your retirement account with each paycheck is a good start. But it doesn’t get you to the finish line. How much money will you need to meet your expenses once you retire? What other sources of income can you count on? Understanding your total financial picture is critical so you can course-correct if needed while you still have time.

Not considering insurance and healthcare costs

End-of-life healthcare expenses can quickly eat through your savings. Your retirement planning should include considerations such as long-term care and other types of insurance. At Gosho Financial Group, we can help you understand your insurance needs.

Keeping your focus too narrow

When most people think about saving for retirement, they consider only tax-deferred accounts. However, many other types of investments can help ensure a comfortable retirement and may come with a lower tax burden.