Whether you’re starting your career, approaching retirement or you’re somewhere in between, it’s important to understand the various options available to help you reach your retirement goals.

Even if you are already investing in a 401(k) or other retirement plan, contributing to an Individual Retirement Account (IRA) can help you diversify your investments and provide an additional tax-advantaged savings plan, say experts.

“There are some important differences between Roth and Traditional IRAs that all retirement planners should keep in mind,” says Mary Ellen Hancock, a senior wealth strategist with PNC Wealth Management.

Hancock says to consider the following three things, when choosing a retirement account.

Tax Rates

Will your taxes be higher now or later? On the face of it, the decision appears to be straightforward, Hancock explains. If you expect your tax rate will be lower when you retire, a traditional account may offer you more spendable income for retirement. If you expect your tax rate will be higher than it is now or the same upon retirement, a Roth account may provide you with more spendable income later. The challenge is that there is no way to know what future tax rates will be, and even if you had a crystal ball, other factors at play should also be considered.

Income and Expenses

“Understanding your spending before you retire can help you have a smoother and more successful transition as you begin your next chapter,” says Hancock. “It’s important to assess what income and expenses may be eliminated when you retire and what new expenses may be added.”

Hancock explains that working with a financial advisor can help you estimate your post-retirement budget. However, it’s important to keep in mind that withdrawing from a traditional account to pay for unexpected expenses during retirement can result in unpleasant consequences, such as higher Medicare premiums, more of your Social Security benefits being taxed or raising your tax bracket. On the other hand, qualified withdrawals from Roth accounts are tax-free and should not affect your taxable income or treatment of Medicare and Social Security benefits.

Required Minimum Distributions

“Roth options may have some advantages over traditional accounts, as you do not need to start withdrawing at age 70 1/2,” says Hancock. “Traditional accounts, both 401(k)s and IRAs, require you to withdraw money once you reach that age, which limits the account’s growth potential.”

For many individuals, using both Roth and traditional accounts may help address some of the uncertainty over your future tax bracket and whether your spending needs may change. There are IRA contribution limits set each year by the Internal Revenue Service, so it’s important to check with the IRS website, your financial planner or tax advisor on how much you can contribute to each.

While no one can plan for every eventuality, understanding your current circumstances and looking ahead can help you make sound investment choices now that can help you reach your retirement goals.

(Statepoint)

Deep East Texas Council of Governments (DETCOG) has named Holly Anderson its Program Director of the Year. Anderson directs the Area Agency on Aging (AAA) of Deep East Texas.

“Our Area Agency on Aging is a very complicated program with a lot of different parts. It is an art to see the way Holly manages all those parts and brings them together for the benefit of the residents of our region,” said DETCOG Executive Director Lonnie Hunt while making the presentation.

After starting at DETCOG as a computer operator in 1984 Anderson later served as an Aging Counselor and was named the Director of the Area Agency on Aging in 1987. She was also named Assistant Executive Director last year.

Anderson oversees the AAA programs that include funding for Senior Centers throughout the region that provide congregate and “Meals on Wheels” as well as activities for persons age 60 and older. The AAA also provides health education programs, care coordination, caregiver support services, benefits counseling, and an ombudsman for residents of long-term care facilities. She also is responsible for the operation of the 2-1-1 Texas Information and Referral Service for the region and the Aging and Disabilities Resource Center which provides information, assistance and options counseling to older persons and persons of all ages with disabilities.

The Deep East Texas Council of Governments and Economic Development District is a voluntary association of local governments in the 12 county region encompassing all of Angelina, Houston, Jasper, Nacogdoches, Newton, Polk, Sabine, San Augustine, San Jacinto, Shelby, Trinity and Tyler counties. It is both a political subdivision of the State of Texas and a federally chartered Economic Development District. DETCOG was created to facilitate planning, eliminate duplication, and promote economy and efficiency in the coordinated development of its region.

Jeffrey Adams has been named Employee of the Year by the Deep East Texas Council of Governments (DETCOG). Adams handles Special Projects DETCOG’s 9-1-1 department. He is responsible for wireless and network testing on the regional 9-1-1 network.

“He may also be heard answering the phone or be seen in one of the 9-1-1 Public Safety Access Points helping install batteries or at one of the addressing offices installing software or moving furniture and boxes for one of the other DETCOG Departments. Jeff is always ready to do whatever it takes to get the job done – you never get a “that’s not my job” and never any complaints,” said DETCOG 9-1-1 Program Director Van Bush.

DETCOG Executive Director Lonnie Hunt noted “Adams has a friendly and calm demeanor and can be trusted to represent his department of DETCOG well in any situation. He is well respected and liked by all his co-workers at DETCOG.”

Also recognized for their years of service at DETCOG were Charlesetta Malone for 25 years; Barbara Davenport for 20 years; Tonya Jackson for 15 years; Carla Scurlock, Lloyd Persons and Bob Bashaw for 10 years and Veronica Thomas for 5 years.

Deep East Texas Council of Governments is a voluntary association of local governments in the 12 county region encompassing all of Angelina, Houston, Jasper, Nacogdoches, Newton, Polk, Sabine, San Augustine, San Jacinto, Shelby, Trinity and Tyler counties. It is both a political subdivision of the State of Texas and a federally chartered Economic Development District. DETCOG was created to facilitate planning, eliminate duplication, and promote economy and efficiency in the coordinated development of its region.