Why Choose HFG?
Why should you hire HFG as your trusted financial planning firm? This video demonstrates the value we offer our clients from the onset of the relationship through retirement.
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The financial markets, as well as regulatory and tax environments, are dynamic. Information accurately presented on one date could be rendered inaccurate by any number of future changes occurring outside the control of Harding Financial Group. This content is intended to be used, and must be used, for informational purposes only, and is not to be considered investment advice. You should not make financial decisions until you, or a qualified legal or financial professional retained by you, have fully reviewed your own personal circumstances prior to making such decisions. Harding Financial Group provides tailored investment advice only to individuals and families who have signed an investment advisory agreement.
The primary focus for young adults should be saving and investing as much as they can because, generally speaking, they have fewer liabilities. Additionally, young adults can typically tolerate more risk in their investments, which could result in better investment returns over time. By starting to save and invest earlier in life, the long-term effects of compounding growth will have a drastic impact on one’s ability to retire on their own terms
In retirement, the main priority is income production. If you’ve planned appropriately with an experienced HFG advisor, you should feel confident that you will not outlive your money. To maintain this peace of mind, however, it is important to have a plan for your retirement income withdrawals and stick to it. Whether a fixed percentage of your assets or a set dollar amount works best for you, what’s most important is that it’s predictable and sustainable.
You are much closer to retirement so your risk tolerance will lean more toward conservative. Having a plan for Social Security and Medicare is paramount to your successful retirement. If your goal is to retire early, the proportion of your balances in taxable vs. tax-deferred accounts needs to be taken into consideration. As time has passed, your income needs or expected expenses in retirement may have changed, so your retirement plan will need revisited with your financial advisor.
These are your peak earning years. In early midlife, you typically have more liabilities than in young adulthood (e.g. children, mortgage, medical bills, etc.), and are well-established in your profession. Your risk tolerance will tilt closer toward moderate as you have fewer years to retirement, but you can compensate with having more income to save/invest than in young adulthood. It’s recommended to funnel a set dollar amount per pay into your investment & retirement accounts.
In contrast to its pre-tax Traditional IRA counterpart, the Roth IRA allows for tax-free withdrawals in exchange for assuming tax liability on contributions. In summation, investors pay tax now on contributions and assume no tax liability on future withdrawals, if certain conditions have been satisfied.
Traditional IRAs offer the same tax-deferral benefits as employer-sponsored plans but have different contribution and deductibility limits. IRAs typically have a more robust offering of investment options than the typical employer-sponsored retirement plans today.
Many of our clients started working with us by rolling over an employer-sponsored retirement plan. Common employer-sponsored plans include 401(k), 403(b), SEP IRA and SIMPLE IRA plans. All offer tax-deferral benefits, and many offer employer matching contributions, but each have their own nuances to be aware of.