POUGHKEEPSIE, N.Y., June 8 /PRNewswire-FirstCall/ -- It is estimated that you will need upwards of 70 percent of pre-retirement income to maintain your standard of living when you stop working. Social Security benefits currently provide only 40 percent of pre-retirement earnings. Tax and Financial planning firm Gilman Ciocia (OTC Bulletin Board: GTAX) says when it comes to retirement planning, especially in today's climate, the baby boomer generation needs much preparedness. Setting aside an adequate emergency reserve and investing for a secure retirement are goals that should be high on the list.
Because of this volatile and rapidly changing financial market, Americans need to reassess their retirement needs. Gilman Ciocia recommends that baby boomers meet with a reputable investment advisor who can formulate a solid and sensible plan for retirement savings. The plan should accumulate a multiple of what is needed annually to live on, with allowances for pensions and social security. Retirement planning should always consider individual income needs. Gilman Ciocia suggests that you choose the best mix of investments for your savings based on your risk tolerance and objectives. Investments may include mutual funds, bonds, real estate and variable annuities. Retirement accounts can offer substantial tax advantages and provide you with opportunities to benefit from the powerful effects of compounding.
Save, Save, Save: With Traditional IRAs and Roth IRAs, you can contribute up to $5,000 a year, or $6,000 if you're age 50 or older.
Don't forget about adequate life insurance, disability income replacement insurance and long-term care coverage. Long-term care insurance helps pay for the many services beyond medical care and nursing care used by people who have disabilities or chronic illnesses. Most Americans need life insurance as it provides cash to your family after your death. Your family will need to replace your income once you're gone to help meet important financial needs such as funeral costs, daily living expenses and college funding. Gilman Ciocia believes that it is always a good time to examine these priorities as well, to safeguard your future.
Beneficiary designations, Powers of Attorney, wills, estate planning. Are these working advantageously for you? Do you even have them in place? This is the time to get your plans in order and be sure that tax changes have not changed how you intended these contracts to work.
There is no one-size-fits-all plan. Your plan should be tailored to your needs. Making solid decisions today can help you to be better prepared for your financial future.
Sources: CNNMoney.com and the Social Security Administration
About Gilman Ciocia, Inc.
Gilman Ciocia, Inc. is a leading provider of federal, state and local tax preparation services with offices in New York, New Jersey, and Florida. Founded in 1982, Gilman Ciocia caters to middle and upper income taxpayers who face an increasingly complicated tax code and must choose from a growing array of investment options. Unlike some tax preparation chains, Gilman Ciocia is open year-round, which affords individuals the opportunity to contact their advisors and ask questions as they arise. Gilman Ciocia is a member of the National Association of Tax Professionals and is recognized among the Top 40 accounting firms nationwide in 2006 by Accounting Today Magazine. Visit www.gtax.com or call 1-800-TAX-TEAM for more information and to find the office closest to you. Securities offered through Prime Capital Services, Inc. Member FINRA/SIPC. Gilman Ciocia and Prime Capital Services, Inc. are affiliated entities. Neither offers legal advice.
Director of Marketing
SOURCE Gilman Ciocia, Inc.