What Retirement Options are Available for Royal Caribbean Cruises’ Employees?

June 30, 2016 by Sam Curmaci

What to do with your Royal Caribbean Cruises Retirement — As a Royal Caribbean Cruises employee, you should know what to do with your retirement when you’re ready.

Setting sail with Royal Caribbean Cruises as a career employee has many benefits. Likely, retirement isn’t the main benefit that initially attracts employees, but eventually after some time sailing the seas retirement begins to become an important subject. This can lead to the important question: what retirement options are available for Royal Caribbean Cruises’ employees?

Great Benefits Include Diversified Retirement Plans

The good news for those who were more interested in the health care, time off, and discounted cruise benefits – Royal Caribbean Cruises also offers great diversified retirement plans for their employees.

Specifically these come in the form of: non-contributory pension plans, 401(k) plans, and an employee stock purchase plan.

While every employee during onboarding was briefed on these benefits, the degree of each employee’s involvement over the years of working will vary considerably. Either way, you’re now interested in paying more attention to these funded retirement plans and considering your options after retirement.

Explaining Royal Caribbean Cruises’ Retirement Plans

Whether your going to become Royal Caribbean Cruises’ permanent customer, have found a paradise island in the Caribbean Sea to retire to, or have decided Alaska is would be a wonderful contrast, the good news is: you can take full advantage of your hard-earned retirement funds with the right management. Let’s first explain the plans offered with Royal Caribbean Cruises.

The non-contributory pension planned offered from Royal Caribbean Cruises is basically a traditional pension where the employer is paying a certain amount into a qualified retirement plan without the contribution of the employee.

This also means this amount is not taxable until the pension is withdrawn after retirement. An employer will have a certain amount of time required for employees to work for them in order to receive this retirement benefit, which is called vesting.

This pension will accumulate through the years and upon retirement at age 59 ½ will be incrementally paid to the vested employee. Recipients will be required to pay income taxes on the amount they receive yearly. The amount received depends on the amount of years, salary, and other specifics determined by the employer, but a set amount will be distributed monthly while in retirement.

While the non-contributory pension plan is non-voluntary, the 401(k) retirement plan is voluntary. A certain amount will be taken from each check and placed in a 401(k), as well as any extra amount an employee wants to contribute. This 401(k) retirement account will be invested in a portfolio of mutual funds generally, so the return depends upon the financial managers’ decisions.

An employee stock purchase plan is a voluntary retirement benefit plan where the employer takes a portion of employees checks and buys their company’s stock at a discount. The time frame and performance of the stock will determine the return on investment at retirement.

What Options Do I Have With These Plans?

While these plans mature and start to become larger, the question then becomes: what’s the best way to manage these without paying heavy taxes? At least this should be the question as taxes have been deferred up until this point, but upon withdraw they’ll be required.

The objective then becomes to manage these hard-earned retirement investments in the best way to avoid heavy taxes and gain a return on what remains.

The financial principle: “it takes money to make money” is true, yet also true is: “the more you make they more they take”. The good news is there are solid options of how to manage your retirement, so you can minimize taxes and increase profits.

The key tool here is what’s called a roll over, which is a legal financial transaction from one qualified retirement plan to another. This rollover (if done in a timely and correct manner) allows investors to bypass taxes and reinvest in more profitable retirement plans. Although the retirement plans Royal Caribbean Cruises gives employees are good, a savvy investor may want more control over the funds they’ve accumulated.

Retirement Specialist

At this point finding a qualified, experienced, and expert financial advisor to help you understand your specific investment options is key. They can help you explore the options best suited for your financial plans and then facilitate and manage the process.

S.A.C. Investments is the retirement specialist that can help you understand your investment options in: ETF’s, Mutual Funds, Bonds, Annuities, and can help facilitate any roll overs. Working with a smaller financial firm gives you top-talent and the personal attention needed to make tough financial decisions with your hard-earned retirement.

Our experience and expertise in the financial industry, specifically around retirement, can work on your behalf. Our goal is to manage your investments and monitor the risks so you can enjoy retirement. We do this with integrity and unbiased professional advice provided through a client-friend relationship.

Summary

Royal Caribbean Cruises’ employees have great retirement plan benefits, so understanding the options available to capitalize on these hard-earned funds is vital. Having a trusted financial advisor on your side to help you understand these options and then professionally manage the details takes the complexity out of the process.

The financial investment world is a complex area to navigate and large amounts of money can be lost with simple mistakes. S.A.C. Investments is here to help Royal Caribbean Cruises’ employees take full advantage of their retirement plans.

If wise choices are made, these retirement funds can increase while taxes are minimized, ensuring you a healthy financial life during retirement. If interested in learning more please contact us today for a free 30-minute consultation.

What Influences How Much To Invest For Retirement?

June 23, 2016 by Sam Curmaci

When investing for retirement, you’ll need to have a goal in mind that’s based on how much you’ll need to afford the quality of life that you’re after. Retirement planning is basically figuring out how much income is needed based on what you think you’ll be spending. Once you add in your social security and pension benefits, it’s up to you to figure out what shortfall needs to be covered to meet your living requirements. Retirement is less fun when you run out of money, so here are a few factors to consider to make sure your retirement investing produces income that lasts as long as you do.

Inflation

Inflation is one of the biggest challenges facing retirees after they quit working. Financial planners typically estimate a 3% inflation rate as a baseline for their calculations. Using the rule of 72, that means that the spending required to maintain your standard of living will approximately double every 24 years. If inflation averages 6%, you will need to double what you spend every 12 years to maintain your standard of living. The popularity of the 3% forecast for retirement planners owes to the fact that inflation has been mild and averaging about 3% since the 1980s. But the future has no obligation to repeat the past, and government debt, negative interest rates and unsustainable entitlement programs run by the government are all threats to escalate inflation. During the oil crisis of the 1970s, the inflation rate was closer to 10%. Because of these uncertainties, it’s prudent for retirement planning to use a variety of inflation scenarios to forecast how varying inflation rates affect your need to save.

Life Expectancy

Actuarial tables and the life expectancy tables kept by the Social Security Administration forecast that men and women live until the middle of their 80s, with women averaging about a couple of years longer life expectancy than men. Calculating your life expectancy is important since your investing targets will change depending on how much longer you expect to live. Unless you have a chronic illness or have a family history of a debilitating disease, it is important to forecast your life expectancy optimistically. If you’re in your 50s or 60s, it’s recommended that you forecast your retirement needs into your 90s. Longevity, antiaging science and biotechnology are rapidly developing and will ultimately improve the life expectancy for older adults as they grow into their golden years. The risk of forecasting a too short of a life expectancy is that you’ll run out of money too soon. Retirement planning is like buying insurance for your later years, but that insurance is null and void if you’re not generous enough with your mortality forecast.

How Much Your Pension and Social Security Will Contribute to Your Retirement Funds

The taxes you pay for social security during your working years are in some form given back to you when you reach retirement age. The best way to forecast how much social security benefit you shall receive is to use the free SSA retirement calculator which will give you a personalized social security projection using your earnings history. The social security administration estimates that your benefit will be approximately 40% of your working income, which is more biased towards your most recent wages. Of course, social security is an unfunded entitlement program which has no assets behind it: the working age population pays social security taxes to fund retiring workers who are growing in ranks year after year. Corporate pensions, just like the murky future of social security benefits, are not necessarily a bad rock to be depended upon. If your company is bought out or declares bankruptcy, the pension liability is often ripe for pillaging or getting cut altogether during negotiations. That’s why it’s generally smarter to depend on 401(k)s or IRAs which are part of your personal savings account. Ultimately, 401(k)s and IRAs are something you own and form part of your savings. Although the pensions of government workers are generally more dependable than of those who’ve labored in the private sector, it’s up to you to calculate just how much faith you have in the institutions that are backing your pension obligation.

Are you wondering how to best maximize your nest egg into retirement? Get in touch today for a retirement investing consultation.

Financial Planning for Retirement: 3 Ways to Increase Your Retirement Savings

June 16, 2016 by Sam Curmaci

As retirement draws closer, you become more conscious of the need to set money aside now. You have the extra money to spend on vacations, new vehicles, and entertainment, but as your retirement looms nearer, you want to focus your financial planning in a different direction. Increasing your retirement savings may enable you to retire sooner or help you keep living the life you want throughout your retirement years. Following a few simple steps now will help you make those changes.

Assign Percentages

You already know that a certain percentage of your income should be going to your savings account. Chances are, you’ve already assigned a percentage of your paycheck to retirement, too. There are, however, some other areas where a simple percentage check can help put your spending in perspective. Calculate what you’re spending now, then make some shifts to help increase your savings.

Entertainment spending: how much are you really spending on movies, events out with your spouse, and other entertainment expenses? Calculate a specific percentage, then look for ways to shave one or two percentage points from it.
Food and drinks: As you near retirement, you no longer have to worry about feeding your entire family at every meal. That means that your food spending should have decreased–but has it? Expensive meat choices, regular trips to your favorite restaurant, and that morning stop for coffee all add up fast.
Vacation: You’ve waited for years to be able to vacation with your spouse anywhere you like. While taking vacations is great, take a hard look at what percentage of your income those trips actually represent. If you really want to increase your retirement savings, start looking for ways to save money even when you’re out to relax. Giving yourself a vacation budget won’t cut into the fun. It will ensure that you can have fun later, too!

Write a Better Budget

When was the last time you actually sat down to look at your budget with your spouse? Taking the time to look over your spending now seems silly. After all, the kids are out of the house. You have extra money left over that you’ve never had before! Writing out your budget and including the things that are really important to both of you, however, can help you and your spouse get on the same page and develop a better appreciation for how much money you really need to live on. Since that budget may continue well into your retirement years, those are great things to know! Make sure it includes things like:

Salon expenses, including your wife getting her hair done
Replacing clothing that has worn out, from work clothes to the clothes you wear for leisure activities
“Fun money” for each member of your family that you can spend the way you want, without needing to check with the other party
Hobbies and interests that add a regular expense to your budget, especially the ones that you might feel obligated to buy new equipment for (classes that you take and pay for every month, sports equipment that needs to be replaced, etc)

Writing out a budget will make it easier for you to stick to a plan–and help you keep on track even when it would be easier to pull out your card and make a purchase.

Track Your Spending

You’ve checked the percentages. You’ve written your budget. Now, there’s one last crucial step to seeing just how much you’re actually spending–and therefore how much more could make it to retirement savings. For at least a month–and six months might be more realistic–track your actual purchases to discover exactly where your money is going. This process can help you see things like:

Where you’re wasting unnecessary money
How often impulse purchases are interfering with your savings plan
How often you’re really going out to eat, stopping at your favorite coffee shop, or hitting the movie theater
How much your favorite hobby really costs your family

The longer you track your actual spending, the more realistic your account will be–and the better the odds will be that you’ll get a real picture of how much money you need for retirement as well as how much more you can invest now. Looking for more ways to improve that retirement account? Contact us today for more information.

Everything You Need to Know About Wealth Management Fees

June 9, 2016 by Sam Curmaci

When you hire a wealth manager, you don’t pay him an hourly amount. Most wealth managers charge an annual fee based on a percentage of your assets. This annual fee ranges from 0.25%-2% of your account. You must understand what wealth management is and how payment works before you hire a wealth manager. Continue reading to learn what you need to know about wealth management fees, so you can ensure you spend your money wisely.

Wealth Management Fees Depend on the Size of the Account

You’ll hear that wealth management fees are typically around 1%, and while that is true, the exact percentage depends on the size of your account. Wealth managers will charge a lower percentage for clients with big accounts. The largest accounts can have a fee as small as 0.25%. Those who have a smaller account pay more than 1%, up to 2%.

If You’re Paying 1%, Get Your Money’s Worth

A wealth manager provides many services all in one. If you solely use your manager for investment advice, then you aren’t getting your money’s worth. Investment firms are often cheaper than wealth management because they focus on investments, whereas wealth managers take a well-rounded approach as long as the client has various financial goals. Think about all of your financial goals, including retiring, sending your kids to college, going on a nice vacation, hitting a certain number in your savings, etc.

When you don’t have time or motivation to research and learn about investments on your own, then paying a 1% fee to a wealth manager is a good deal. You can spend time on activities you enjoy rather than tackle a steep learning curve. There is a lot to learn to become a good investor and not all of it is down to the textbook. A core aspect of investing is mental. You mustn’t let fear or greed control you. Therefore, most people who are interested in investing are better off consulting with an expert, whether that’s an investment adviser or a wealth manager.

Questions You Should Ask Before Choosing a Wealth Management Firm

Choosing the right wealth manager for you shouldn’t come down to the fee they’re charging. What really matters is how trustworthy they are, what they can do for you, and whether or not the two of you can maintain a fulfilling client/customer relationship in the long-term. As we explained in a previous blog post, wealth managers strive to stay by your side for life. Here are some questions you should ask yourself before choosing a wealth management company:

Do I trust him to be honest with me even when it’s something I wouldn’t want to hear?
What are my financial needs, and can this person fulfill them?
Do I know how he gets paid and what potential conflicts of interest would be?

That last question may need some elaboration for you to understand. Some wealth managers receive bonuses if they successfully encourage clients to make a particular investment. You must be aware of this fact in order to make an informed decision. That doesn’t mean you should cross someone off your list for it, but keep it in mind if you choose to hire him. Some wealth managers are still objective despite incentives, but it’s up to you to decide whether or not you can trust the individual.

Conclusion

The value you receive from wealth management makes the fees worth it. What percentage a wealth manager charges you depends on the size of your account. Those with larger sums to work with are charged as little as 0.25% annual assets. Clients with small accounts could have up to 2% in annual wealth management fees. Typically, you can expect a wealth management fee of 1%. Rather than get hung up on percentages, focus on the value you’ll receive from wealth management. A wealth manager is there to help you increase and maintain your wealth.

Schedule a chat with us to determine what fee we will charge you if you hire us as your wealth manager and what we can do to help you achieve your financial goals.

What Should You Do With Your Office Depot Retirement?

June 2, 2016 by Sam Curmaci

What to do with your Office Depot Retirement — After years of growing a 401(k) while working for Office Depot, you need to start thinking about what you will do with those funds once you retire.

After years of growing a 401(k) while working for Office Depot and now nearing retirement, what exactly are your options? Office Depot offers a 401(k) retirement plan from Fidelity Investments, but do you have to keep your 401(k) earnings there? Basically, the question is: what should you do with your Office Depot retirement?

Retirement With a 401(k)

The minimum age of retirement recognized by a 401(k) plan is 59 ½ years old, which may or may not be your age. Either way, starting to receive funds from a 401(k) has to wait until this age. There are many restrictions around withdrawing from this retirement savings account, which are designed to penalize early withdraws.

When reaching that retirement age, a set amount will be distributed each month from your 401(k), determined by life expectancy and other factors around each individual circumstance. This amount distributed will be taxable as income tax, according to the tax bracket itwas made in. So, although a 401(k) is tax deferred at first, later on the recipient does have to pay some taxes on it.

Options When Retiring

Reaching the age of retiring is a joyous occasion, which shouldn’t be hampered by bad surprises when it comes to restrictions and limitations around your retirement savings. Likely, you’ve been monitoring the amounts and even contributing extra into your 401(k), and now you want to ensure you benefit from the years of investing and hard work.

Using your money to make money is a great idea, and can be sort of a part-time job during retirement. If used correctly, investments could grow and taxes could be minimized. For the retiree who wants more flexibility and options in dealing with his retirement savings, a directroll-over of their 401(k) into another retirement plan may be the right option.

Here are some retirement investment opportunities to consider:

ETF’s
Mutual Funds
Bonds
Annuities

Rolling over a 401(k) directly into another qualified retirement plan, can be done without penalty or tax liability. The purpose of this is to give you more flexibility and options concerning withdraw and investment opportunities.

Benefits of Using a Smaller Retirement Specialist Firm

Working with a smaller retirement specialist financial advisor, can give you the personal attention needed to maximize your retirement account benefits. Larger firms are less capable of working individually with each client, the way a smaller firm like S.A.C. Investments can. The best part is: you’ll get even better expertise and advice, because you’ll have access to their top advisors.

There are many tips and tricks to the investment world, which an experienced financial advisor can help you navigate. Taking chances with the hard-earned money you’ve accumulated for decades, should be avoided. Working with a smaller firm, means you’ll get the attention and advice needed to avoid heavy penalties, risky investment practices, and heavy tax liability.

S.A.C. Investments

We’re retirement specialist, which means we understand how to properly manage 401(k) roll overs into qualified retirement plans, which give more investment options and flexibility. Every client’s needs and circumstances are different, and we take the time needed to gain a clear understanding of these unique variables.

Asset allocation and risk vs. reward are both part of our investment strategies, which result in secure investing while gaining the highest rewards. Our goal is to choose your investments based on your needs and objectives, rather than some cookie-cutter formula. And it is our ultimate goal to provide a level of service that inspires confidence and trust, while bringing absolute clarity to each client’s goals and investment objectives.

After decades of working for Office Depot and investing into your 401(k), gaining a clear understanding of future investment options is a wise choice. By talking to S.A.C. Investments with a free consultation, your savings could be more accessible and earn more every year. Please contact us today to learn more, and we’ll be glad to help.

SAC Investments

Financial Services Ft. Lauderdale Florida

Call Today! (954)763-2816

Sam Curmaci, President of Investments