Investments

No one investment is suitable for everyone, which is why we do a thorough review before recommending any particular investment. We must first discover your goals, needs, and risk tolerance in order to pair you with an appropriate investment vehicle.

Here is a brief list of the types of investments we specialize in:

Retirement Plans

Traditional IRA

The most often mentioned benefit of a Traditional IRA is tax-deferral: your contributions and the earnings on those contributions grow tax-deferred over the life of the account. Also, depending on your income, you may be able to take a tax deduction for the contribution.

Roth IRA

The Roth IRA was established through the Taxpayer Relief Act of 1997 and named for its primary sponsor, the late Senator William Roth of Delaware. We consider the Roth IRA a “gift” from Congress since it allows your investments to grow tax-free. You do not get to deduct contributions to a Roth, as you do with a Traditional IRA, but whatever your account grows to is completely tax-free (granted the account has been opened for at least 5 years for principal withdrawals and the owner’s age is at least 59 ½ for withdrawals on the growth portion above principal). Income thresholds apply to eligibility to contribute to a Roth IRA.

401(k) and/or Profit-Sharing Plans

A 401(k) plan is a common way for employers to provide pre-tax retirement benefits to employees by offering a “match” while also allowing employees to put away tax-deferred contributions for themselves.

We specialize in bundled 401(k) plans where the administrative and bookkeeping tasks are managed by one company, or unbundled plans for those who prefer to choose an outside TPA. Many plans are outdated and don’t take advantage of new and improved options. We have successfully updated many company retirement plans while still being able to lower their overall costs. Quotes available upon request.

SEP IRA

SEP IRAs are adopted by business owners to provide retirement benefits for the business owners and their employees. There are no significant administration costs for self-employed person with no employees. If the self-employed person does have employees, all employees must receive the same benefits under an SEP plan. Since SEP accounts are treated as IRAs, funds can be invested the same way as any other IRA. Contribution limits for 2009 are the lesser of 25% of income or $49,000.

SIMPLE IRA

A SIMPLE (Savings Incentive Match Plan) IRA is another type of employer-provided plan, like a 401(k)  but offers simpler and less costly administration rules. It is funded by pre-tax contributions.  Contribution limits for SIMPLE plans are lower than for most other types of employer-provided retirement plans: $11,500 for 2009 (if under age 50) and $14,00 (if over age 50) as compared to $16,500 for 401(k), 403(b), and 503(c) plans

2009 Retirement Plan Contribution Limits

Plan Type	Contribution Limit (under age 50)	Contribution Limit (age 50 and over)
Traditional IRA	$5,000	$6,000
Roth IRA	$5,000	$6,000
SEP IRA	Lesser of 25% income or $49,000	No change
SIMPLE IRA	$11,000	$14,000
401(k), 403(b), 457 Plans	$16,500	$22,000

Fixed Anuity

A fixed annuity is like a bank CD, except you are entering into a contract with an insurance company. They guarantee you a certain amount of interest over a certain period of time. Usually you can withdraw a limited percentage annually (e.g. 10%) of your original contract value without penalty. Fixed annuities do not fluctuate in value like variable annuities due to the nature of the underlying investments.

Fixed annuities are long-term investment vehicles designed for retirement purposes. Gains from tax-deferred investments are taxable as ordinary income upon withdrawal. Guarantees are based on the the claims paying ability of the issuing company. Withdrawals made prior to 59 1/2 are subject to 10% IRS penalty tax and surrender charges may apply.

Additional Services Available

• Variable Annuities
• Brokerage Accounts (common stocks, bonds)
• College Savings 529 Plans
• ETFs
• Index Annuities
• Government Securities
• Treasury Bills