Create Financial Independence in Santa Barbara, CA
Your retirement years can be comfortable when you plan for it. You want to make sure that you have enough finances to maintain your quality of living. A pension alone may not cover all your costs. Count on Collaborative Financial Solutions & Wealth Management to help you create financial independence in Santa Barbara, CA. We specialize in individual retirement accounts, annuities, mutual funds, and certificates of deposit. Count on us to match you with financial products.
Individual Retirement Plans
A popular option for retirement planning is a contribution to an Individual Retirement Plan (IRA). IRAs allow a variety of investment options, including variable annuities, stocks, and government securities. There are several types of individual retirement plans, including the Traditional IRA, Non-Deductible IRA, or Roth IRA.
A traditional IRA is funded through after-tax dollars and can be contributed to even if a client holds another retirement plan, such as a 401(k). All income tax from this type of IRA is deferred until money is withdrawn, and the growth of contributions and earnings is generally tax-deferred. With a nondeductible IRA, contributions are made with after-tax dollars, and there is no income tax deduction allowed. Withdrawals prior to age 59 1/2 may result in a 10% IRS penalty tax in addition to current income tax.
Other Retirement Planning Options
Depending on the nature of your employment, you may be eligible for other kinds of retirement planning options. Annuity investing means that the money you put into the annuity will be paid back to you at regular intervals after a certain amount of time. With mutual fund investing, you join other investors to pool your money and purchase securities that include stocks and bonds.
Independent contractors, government employees, or tax-exempt organization employees may choose to invest in 457 plans. These plans allow participants to exclude certain specified types of salary from their gross income. Other options may include Deferred Compensation Plans and 403(b) plans.
Certificates of Deposit
A CD is a deposit account that generally offers a higher rate of interest than a regular savings account. Investors put a fixed sum of money into a CD for a fixed period, and when the CD is redeemed, gain the accrued interest, plus the principal amount invested.
Contact us discuss alternative retirement planning options. We proudly serve Santa Barbara, CA, and surrounding areas.
Fixed and Variable annuities are suitable for long-term investing, such as retirement investing. Gains from tax-deferred investments are taxable as ordinary income upon withdrawal. Guarantees are based on the claims paying ability of the issuing company. Withdrawals made prior to age 59 ½ are subject to a 10% IRS penalty tax and surrender charges may apply. Variable annuities are subject to market risk and may lose value.
Investing in mutual funds involves risk, including possible loss of principal.
CDs are FDIC Insured to specific limits and offer a fixed rate of return if held to maturity.