MKA Executive Planners Blog

A Good Problem to Have…Savings Alternatives for Senior Executives and Professionals

Posted by Dennis Sexton on Tue, Dec, 12, 2017

Senior executives and professionals in both the not-for-profit and taxable sectors have a problem that most people would envy. Where do they put savings above qualified retirement plan limits? They can’t qualify for a traditional or Roth IRA as an individual taxpayer. Employer sponsored deferral and savings vehicles are subject to regulations that make them restrictive, inflexible, public and insecure, e.g. the executive’s savings may be exposed to creditors of his or her employer. Plus, they can’t access the money easily should they need it.

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Tags: Executive Compensation, Retirement Planning, After Tax Plans

8 Ugly Traps in Section 457(f) Plans

Posted by Barry Koslow on Thu, Oct, 20, 2016

Section 457(b) and 457(f) plans are the most common supplemental retirement accumulation plans utilized by tax exempt organizations.  While many provisions apply to both models, the rules applicable to 457(f) plans are particularly onerous.  Here are 8 ugly facts about Section 457(f) plans.

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Tags: Retirement Planning, Supplemental Retirement Plan, Executive Compensation, 457(f) Plans, Not for Profit Supplemental Plans, Physician Supplemental Plans

The Tax Man is Waiting for a Piece of Your IRA

Posted by John Yagjian on Fri, Aug, 21, 2015

Individual Retirement Accounts (IRA’s) and other qualified plan assets (401(k), profit sharing plans, etc.) were designed to help individuals save for retirement in a tax advantaged way.  For simplicity, I will refer to all of these types of accounts as qualified plans.  The most significant tax advantage of qualified plans is tax deferral.  By this I mean that you contribute pre-tax dollars to the qualified plan and the contributions grow tax-free until withdrawn.   

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Tags: Taxes, Retirement Planning

How Safe is Your Retirement Plan? – Part II

Posted by John Yagjian on Thu, Jul, 02, 2015

I have seen many financial plans.  A common plan will take into consideration a savings target during the income years, investment diversification, an assumed investment return commensurate with age and risk/reward profile, income need projected during the retirement years, and the impact of taxes and inflation.

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Tags: Retirement Planning, Estate Planning

How Safe is Your Retirement Plan?

Posted by John Yagjian on Mon, Apr, 13, 2015

For most people retirement planning is about the number.  How much do I need to have invested at retirement to support my lifestyle for the balance of my life?  In most cases financial advisors will structure an investment savings program based upon five primary considerations: (1) how long before your retire, (2) how long will you live after retirement, (3) what is an appropriate assumed after tax rate of return on investments, (4) an appropriate rate of inflation, and (5) other sources of income such as social security, or pensions.  This is a daunting task with a number of important variables. 

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Tags: Supplemental Retirement Plan, Retirement Planning

Annuities – What Are They, and What Are They Good For? - Part I

Posted by John Yagjian on Thu, Apr, 09, 2015

The number one risk in retirement is longevity risk.  Once you retire, the amount of money required to cover your retirement needs increases with number of years before death.  For example, if you were to die three years after retirement, the amount you need is not significantly impacted, but the various investment risks (i.e., market risk, inflation, etc.).  If, however you live to age 85, 90 or older, the amount you need at retirement is significantly lager, and the impact of the various investment risks is significantly more.

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Tags: Retirement Planning, Annuities

Buy what you can afford – you can afford something.

Posted by Barry Koslow on Thu, Jan, 22, 2015

So often we hear the excuse, "I can't afford to buy life insurance."

The reality is that because life insurance is tied to thoughts of one's own death, there is an automatic mental barrier to its purchase.  This can be offset by focusing on the living benefits of life insurance, which today include accumulation of cash surrender value that grows in many ways: interest credited by the insurer, performance of stock indexes or performance of funds that directly invest in various markets and companies.  These funds can be utilized for emergencies or to provide retirement income.

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Tags: Retirement Planning, Life Insurance, Long-Term Care

Seven Steps to Put You on the Road to a Sound and Rewarding Retirement

Posted by Barry Koslow on Tue, Aug, 12, 2014

Studies have shown that Americans don’t plan well for retirement.  Whether it is, “What am I going to do with 40 to 60 hours a week of leisure?”  Or, “How much will it cost to fill that open time?”  It is likely that you have not put pencil to paper, perhaps not even have it on your radar.  Remember that a great plan requires time and effort. 

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Tags: Retirement Planning

Boston Herald Column: Retirement Systems Don’t Add Up

Posted by Barry Koslow on Thu, Jul, 17, 2014

The Boston Herald recently published an opinion piece by Barry Koslow that focuses on some of the problems the Massachusetts retirement system is facing. Here’s how the piece begins:

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Tags: Supplemental Retirement Plan, Funded Retirement Income, Retirement Planning

Deferred Compensation and Capital Accumulation

Posted by Barry Koslow on Mon, Nov, 25, 2013

It is becoming more and more obvious that we all need to pay more attention to our long term need for capital accumulation.  Concerns are growing that the current dysfunction of our federal government and the continuing growth of entitlement programs may force more and more of the middle and upper classes to become self-reliant.  It is not a question of approval of the current direction of government.  It is whether the resources will be there to meet the promises made, while providing for other needs such as defense, infrastructure, etc.

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Tags: Supplemental Retirement Plan, Retirement Planning, Deferred Compensation Plans, Executive Compensation