Retirement Planning

For many of us, financial planning is synonymous with retirement planning. We dream of the day when we’ll finally have the time and freedom to do what we want: take leisurely vacations, pursue special interests, volunteer for community service, even launch a second career.

Whether you’re starting your first job or in the home stretch of your career, a First Command Financial Advisor can help you focus your retirement vision and set specific goals to pursue it. Your Advisor can explain tax-advantaged investment options available to you, help you establish an account and a plan for saving and investing, and meet with you regularly to monitor your progress and advise adjustments when necessary.

Individual Retirement Accounts

Individual Retirement Accounts — in “Traditional” and “Roth” flavors — are two common types of investment vehicles with particular tax advantages. A Traditional IRA offers the immediate benefit of tax-deductible contributions if you meet certain eligibility requirements, plus the long-term benefit of a tax deferral on earnings, meaning that you pay no taxes on earnings until you begin withdrawals, usually after you retire and when you may be in a lower tax bracket. A Roth IRA provides no tax deduction for contributions, but if you meet certain requirements, all earnings are tax-free when you or a beneficiary withdraw them.

As lifetime corporate pensions approach extinction, the message to today’s workers is clear: You must take responsibility for accumulating enough money to fund your own retirement.

SEP-IRA and SIMPLE-IRA, two other types of Individual Retirement Accounts, also offer tax advantages to help self-employed individuals and small business owners and their employees save and invest for retirement.


Annuities offer two distinct retirement-planning benefits. First, investments in an annuity grow tax-deferred, meaning that you don’t pay taxes on earnings until you begin withdrawing them — with the restriction that if you withdraw money prior to age 59½, you’ll pay a penalty. Second, annuities can help meet your income planning needs by providing a guaranteed stream of income.*

While both IRAs and annuities provide tax advantages for investors who stay the course, they also prescribe tax penalties for particular early withdrawals. Your First Command Financial Advisor can explain the differences between various retirement-planning investment options, including the eligibility requirements and restrictions particular to each, to help you select the option that best serves your goals.

To learn more, contact a trusted First Command Financial Advisor today.

*Guarantee depends on the claims-paying ability of the issuing insurance company and does not apply to the investment return or principal value of the separate account.


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