A Few Simple Basics to Remember When Planning for Retirement


First Financial Tax Group pic

First Financial Tax Group
Image: fftaxgroup.us

As a principal of First Financial Tax Group, based in Boca Raton, Florida, experienced financial advisor Barry M. Kornfeld works to provide his clients with high-quality products that meet multiple strategic goals. The firm’s core offerings include Co-Lending Opportunities (CLOs), formerly known as first position commercial mortgage notes. Barry Kornfeld’s clients have appreciated this particular financial vehicle’s ability to generate at least a 6 percent annual yield, that is paid out monthly, while also protecting their principal with first lien status on high value commercial real estate. By joining together with others, or Co-Lending, Kornfeld’s clients are able to participate, with a minimum of just $25,000, in large value transactions typically only available to large, institutional lenders.

Many people consult a financial professional as they look toward retirement. Expert consensus centers on a few core pieces of advice for those approaching retirement age:

Realize that retirement planning is complex. It involves capital gains, taxes, and a wide range of potential savings and income-generating products, some subject to taxation and others tax-sheltered. A qualified financial professional can provide much-needed guidance. Kornfeld’s firm, First Financial Tax Group also offers complete tax preparation services, by a licensed accountant, to those 50 and older, for just $69, which is often a substantial savings versus what many have been paying in years past for the same exact service.

Remember that income from retirement needs to make allowances for inflation, as the buying power of the same yearly fixed income decreases each time inflation rises. Here is a tangible example of this point in action. In today’s environment, CLO’s with at least a 6% annual yield, far exceed the 1% – 2% inflation rate that is widely reported by government statistics. Given their short maturity of 1 year or less, clients have the opportunity to either redeem for cash and pursue other opportunities, or renew into another CLO, with the then current yield offered for another short term maturity.

Draft a plan, and update it annually. The plan should cover how much you need to save each year as you proceed toward retirement, and it should specify the rate of return needed to meet your financial goals in retirement.

Understand that it is never too early or too late to begin saving for retirement. While younger workers need to make constructive use of their advantage of time, those 50 and older can still begin taking positive steps that will produce practical benefits. Many clients who are already retired, would like to preserve principal, while using that principal to generate a dependable monthly income. Kornfeld adds, “So how do 6% CLO’s look, given that reasonable goal? It’s up to each potential client to learn about their options. No one will do it for them.”


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