10 Best Legal and Financial Services in Smithtown, NY

Long island is known for its high cost of living. Made up of four counties, there are approximately 7.5 million residents living on the island. Listed by Forbes magazine as one of the most affluent areas in the nation, many of the residents have something to protect. ItÃ¢€™s not just the neighborhoods of Plandome Manor, Hewlett Neck or Munsey Park with average median incomes estimated around $240,000; the average median income of Long Island as a whole is estimated to be thousands of dollars above the average of the rest of the country. Median asking prices for homes on the market are around $380,000. After working hard to earn real estate and other assets, protecting them is important. While the upper class in the area certainly has something to protect, all classes can benefit from the use of planning their estate. Through estate planning, individuals have the right to ensure their say in the matter is heard and that they exert their influence over issues of protecting assets, shortening and laying out the probate, reducing taxes and more. In the event that the estate owner is no longer able to make the decisions, estate planning can be an invaluable commodity. It also outlines who will inherit which parts of an estate and even the types of medical care that the estate owner wants. Homes, businesses, personal property, bank accounts, life insurance policies, stocks, property and other assets may all be taken into account, giving clear outlines that provide peace of mind for both the owner and their family. Are you considering planning for your estate? The team at theLaw Office of Michael J. Brescia, P.C.can meet with you to discuss your situation during a free initial consultation, allowing you to learn more about how it may benefit your future.

By The Law Office of Michael J. Brescia, P.C.

Withdrawing your retirement income wisely

Whether you’re in or near retirement, keeping a watchful eye on your spending – and its effect on your principal – can be pivotal in determining whether your funds will last at least as long as you do. Tapping your investment portfolio for income during retirement requires a balance between withdrawing too much – and running the risk of depleting your principal – and not withdrawing enough to maintain a comfortable, affordable standard of living that can keep pace with inflation. In determining how much money to withdraw from your retirement funds, you need to establish: yRealistic income needs throughout your retirement years, yAll of the sources of income available and additional assets that may be available to you, including inheritances, pensions, Social Security, part-time salaries, etc., yWhich expenses will be fixed, and which are likely to vary (your financial advisor can help you analyze your cash flow and assess your budget), ySome basic, but flexible, assumptions about the future – from estimated rates of returns on your investments to your expectations for inflation, yContingency planning for major expenses such as long-term care costs, which can dramatically affect your retirement plans, yHow much of a financial “cushion” you’ll want to maintain to deal with unanticipated events, yWhich accounts you will access first, together with the consequence of withdrawing funds from them, yIf and/or when you will start withdrawing principal as well as income, yWhether, once all aspects of your situation are assessed, you will have sufficient funds to generate the lifetime income you have targeted, and yYour plans for your legacy – determining whether and how to leave money to family members, charitable organizations, etc. Countering the Impact of Inflation Whether rising inflation represents a current danger or potential threat, the possibility that the purchasing power of your money will diminish is a factor you must consider. When you are working, your wages may rise as the costs of goods and services increase, thus keeping pace – more or less – with inflation. In recent years, sluggish economic activity has worked to keep inflation low. However, even moderate inflation can significantly reduce your income over time. Assuming a 3% rate of inflation and no other changes, if you currently need $60,000 a year to live, in 10 years, you would need approximately $80,000 annually to support the same standard of living and, in 20 years, you would need an annual income of $120,000. After 30 years, you would require an annual income of roughly $163,000 to maintain your original standard of living. Of course, this is a simplified hypothetical example – and inflation is only one unknown on the horizon. Your financial advisor has access to financial planning software that can address these and other issues unique to your personal situation. Make sure to talk to your financial advisor about the inflation outlook as well as other factors that could affect your retirement income, including possible changes in tax law and the future of Social Security. Lifestyle Changes Many newly retired individuals actually spend more money during the first several years of retirement than they did while working, as they catch up on travel, take time to visit the grandchildren or dedicate themselves to new hobbies. This relatively high level of spending tends to taper off over time. However, while expenses for items such as travel and entertainment may lessen during the later retirement years, health-related costs could increase faster than the general inflation rate. Your financial advisor can assist you in modeling these varying lifestyle expenses throughout your retirement and keep you on track in managing your retirement resources. Tax Awareness Careful tax planning can be just as important during your retirement as it was before – something to consider when you begin to withdraw income from your retirement assets. Your financial advisor is well-positioned to coordinate key retirement-related tax and other decisions with your tax professional and attorney, and can work with you to examine different withdrawal strategies that may be beneficial to you. In general, individuals with Roth IRA or Roth 401(k) accounts may elect to leave them intact for as long as possible. Even though their Roth contributions were made with after-tax funds, Roth accounts allow for tax-deferred growth and tax-free distributions, assuming the contributions have been in place for at least five years and the account holder is at least 59½. Your financial advisor has analytical tools and resources at his or her disposal to assist you in considering the conversion of your traditional IRA to a Roth IRA in 2010, when a change in the tax law will permit those individuals with modified adjusted gross income levels above $100,000 to make the conversion. Managing Withdrawals A typical rule of thumb suggests spending a “fixed real” amount equal to a designated portion of your wealth at retirement, keeping the balance invested in a mix of stocks and bonds. The appropriate withdrawal rate is determined by the amount of income you need during your retirement years less income from other sources. The rate should be calculated with a number of factors in mind, including the assets you currently own – and the potential impact of inflation on those assets. You should also consider the state of your health, the expected volatility of your investments and, of course, the financial legacy you plan to leave your heirs. In most cases, holders of qualified retirement plans must make a minimum withdrawal each year beginning at age 70½. Your financial advisor can assist you with calculating your required minimum distributions (RMDs) from your qualified retirement accounts each year. Your financial advisor has the tools and resources necessary to assist you in addressing each of these significant challenges.Contact me with your questions or comments.Christopher S. JorgensenChris.Jorgensen@raymondjames.comwww.Raymondjames.com/csjorgensen631 265-0800

By CS Jorgensen Company Inc. Financial Services

Maximizing your Social Security Retirement Benefits

KEY TAKEAWAYSConsult with your financial advisor to address each decision factor as it pertains to you, and develop a plan to get the most from your benefits.Delaying benefits as long as you can will increase the amount you are eligible to receive.Deciding when and how to start drawing Social Security retirement benefits involves a number of factors specific to your situation.Baby boomers – on average – are living longer than any previous generation. While that’s good news, it also presents several new challenges. A longer life increases the likelihood that you’ll have increased medical and long-term care expenses. The value of your nest egg will be more significantly impacted by increases in the cost of living over a longer term. And, quite simply, you could outlive your money.When you consider all of these factors, it’s more important than ever to make calculated decisions about when to begin drawing Social Security benefits within the context of your overall retirement income plan.If you are considering applying for benefits soon, you’re likely concerned with four primary decision factors:Your AgeWhen should you draw benefits?Your JobHow do earnings impact yourYour Marriage How do spousal benefits work?This paper is designed to give you an overview of the critical factors that relate to your benefits. This is the first step to developing a basic understanding of how your Social Security benefits work. The next step is to consult with your financial advisor to address each factor as it pertains to you, and develop a plan to get the most out of your benefits when combined with your other retirement income sources.DECISION FACTORSKEY ISSUES TO ADDRESS BEFORE DRAWING SOCIAL SECURITY BENEFITSDelaying benefits as long as you can up to age 70 will increase the amount you are eligible to receive.Full retirement age (FRA)As of 2011, full retirement age is age 66 for anyone born from 1943 through 1954. Reduced benefits are still available starting at age 62.• If you were born between 1954 and 1960, full retirement age is 66 plus 2-month incrementsdepending on the year you were born (see your financial advisor for details).Delayed retirement creditOnce you reach full retirement age, a delayed retirement credit is applied to your benefits for each full year that you delay drawing benefits. As of 2011, the delayed retirement credit is 8% for those born in 1943 or later. The credit stops once you reach age 70.Benefit limitIn 2011, the maximum payout for any beneficiary is $2,366 per month.The full retirement age for Social Security retirement benefits is gradually rising to age 67, but the Medicare eligibility age of 65 is not scheduled to increase.Your Job: How do earnings impact your benefits?If you are employed and earning an income, it may be to your advantage to continue working and delay drawing Social Security until full retirement age to avoid a potential reduction in benefits.If you elect to start drawing benefits before reaching your full retirement age, they will be reduced by $1 for every $2 of annual earnings above $14,160. If you reach full retirement age in 2011, the earnings limit is $37,680 through the month before your birthday. Above that, the reduction is $1 fee every $3. If you continue to work, there are no earnings limits after reaching full retirement age and you will receive your full benefit.Your Taxes: How are benefits taxed when combined with other retirement income?Social Security benefits may be liable for taxes depending on your total annual income, including job earnings, pensions, investment interest and other sources such as annuities.A portion of your benefits may be taxed if your overall income is higher than established thresholds. There are phased increases depending on your level of income. If your preliminary adjusted gross income falls within these thresholds, up to 85% of your Social Security benefit must be included as taxable income on your federal tax return.It’s important to consult both your financial advisor and tax professional for guidance on your unique situation.Continuing to work beyond your full retirement age might also allow more time to contribute to qualified retirement plans, potentially accruing higher gains than you might have otherwise.Your Marriage: How do spousal benefits work?There are three critical factors in determining Social Security benefits for spouses: Length of marriage, work history and the age of both spouses. You need 10 years of work history (40 credits) to qualify for your own benefits, which will be based on an average of the 35 years in which you earned the most. Higher lifetime earnings result in higher benefits, and if there are years in which you earned low or no income, your benefit amount may be lower than if you had worked steadily.This is why many women qualify for a higher benefit based on their husband’s work history over their own. When applying for Social Security benefits, each spouse will automatically receive the highest amount for which they are eligible.To receive benefits based on a spouse’s work history:• Both spouses must be at least age 62• They need to have been married for at least one year or have a child together or 10 years for an unmarried divorced spouse• The spouse with the stronger work history must actually apply for Social Security retirement benefits in order for the other spouse to collect. (However, the spouse with the stronger work history can then choose to delay collecting benefits until later, when he or she may qualify for a higher benefit.)If the higher-earning spouse turns on benefits after attaining full retirement age, the other spouse may receive a spousal benefit of up to 50% of the higher-earner’s benefit. If the higher earner starts drawing early, his benefit and the spousal benefit will be reduced accordingly.A widow(er) may receive survivor benefits at age 60 or at any age if he or she has a child under age 16 or disabled. Should the widow(er) remarry, the Social Security benefit for the widow(er) will terminate – but the benefit for the eligible child will not.NEXT STEPS There are a myriad of different scenarios that may impact your decision about when to apply for – and begin drawing – your Social Security benefits. Since each individual’s situation is unique, it’s important to seek guidance on how to maximize your benefits.WORK WITH YOUR FINANCIAL ADVISORYour financial advisor has the tools, resources and expertise to help you understand the decisions you face.Implement your unique plan to maximize the benefits you’re entitled to.Evaluate key decision factors and understand how they affect your benefits.Assess the impact of Social Security on your overall retirement plan. • If you were born in 1960 or later, full retirement age is 67. Your Age: When should you draw benefits?Perhaps the most impactful decision you can make regarding Social Security benefits is at what age to begin drawing them. Your full retirement age (FRA) falls between ages 65 and 67, depending on the year in which you were born.Drawing benefits sooner than your FRA – as early as age 62 – will permanently reduce the payout you are eligible to receive. On the other hand, if you elect to delay benefits until after your FRA, you will receive an increased benefit – up to the maximum age of 70.benefits?Your TaxesHow are benefits taxed when combined with other retirement income?

By CS Jorgensen Company Inc. Financial Services