Asset Allocation Asset allocation is simply another term for diversification, a strategy that reduces the risk of investing, while often enhancing your gains. Spreading your assets among stocks, bonds and cash is crucial because these core investment categories tend to rise and fall at different times. Through proper diversification, you vastly increase your chances of making steady progress toward your retirement goals. PrimeVest Financial Services can help you allocate your assets appropriately by taking into account several factors, including your age, goals and risk tolerance. As your circumstances change over the years, we’ll recommend adjusting your allocation when necessary to be sure your portfolio always strikes the right balance between risk and reward.  top
Portfolio Management As your wealth increases, the more complicated — and time consuming — investing becomes. To prevent it from turning into a part-time job, rely on the portfolio management services available through PrimeVest Financial Services, Inc. We’ll consider the big picture — your goals, your need for income, the impact of inflation, tax ramifications ... in short, everything that could have a bearing on the makeup of your portfolio. Then we’ll recommend strategies designed to keep your investment program on the right track. And if all you want is a second opinion, that’s fine, too. Just ask us to take a look at your portfolio. We’re happy to do so without charge or obligation. top
IRAs Do you or your spouse have earned income? If so, you’re eligible to contribute up to $5,000 per year (for tax year 2009) to an IRA. If you’re at least 50 years old, you can even put away an extra $1,000 annually. There are two primary types of IRA. With a traditional IRA, contributions are deductible (assuming you aren’t covered by a company retirement plan or your income falls under certain limits), and earnings grow tax deferred until you take distributions in retirement. With a Roth IRA, contributions aren’t deductible, but your earnings grow tax free — instead of just delaying taxes, you avoid them altogether (provided distributions are taken when you’re over age 59 1/2 and the account is at least five years old). Our investment professional can analyze your situation and help you decide which IRA is best. If you’re leaving your job, we also can help you transfer the money you’ve accumulated in your company retirement plan into a rollover IRA, thereby avoiding taxes and penalties and preserving tax-deferred growth. We also offer SEP-IRAs for sole proprietors and SIMPLE IRAs for small businesses (typically 10 or fewer employees). NEW LAW WAIVES REQUIRED MINIMUM DISTRIBUTIONS FOR 2009 On December 23, 2008, President Bush signed the Worker, Retiree, and Employer Recovery Act of 2008, a law that waives Required Minimum Distributions (RMDs) for 2009. This new law offers a moratorium on required minimum distributions from defined contribution plans and Individual Retirement Accounts (IRAs) for the entire calendar year 2009. It was proposed and quickly passed to help retirees recover losses incurred from the volatility of the market over the last months. How does the Worker, Retiree, and Employer Act of 2008 impact you? - If you turn 70 1/2 in 2009, you are not required to begin taking the RMD in 2009.
- If you are already 70 1/2 or older, you are not required to continue to take the RMD in 2009.
- You may still elect to take the distribution in 2009; the law removes the requirement to do so.
- If you are receiving distributions from an IRA that you inherited, a post-death RMD to a beneficiary is not required in 2009.
Which accounts and plans are affected? - Individual retirement accounts (IRAs)
- Simplified employee pension (SEP) IRAs
- Savings incentive match plan for employees (SIMPLE) IRAs
- Inherited IRAs
- Defined contribution plans (401(k) plans, 403(b) plans, government 457(b) plans, profit sharing plans, money purchase pension plans)
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401(k)s Does your employer offer a 401(k), 403(b) or another type of defined contribution retirement plan? If so, join it as soon as you can and contribute as much as you can. At the very least, contribute enough to qualify for any matching dollars your employer might offer. A match of 50 cents on the dollar is identical to an immediate 50 percent return — an unbeatable deal. What’s more, your contributions lower your taxes because they aren’t counted as part of your income. Even better, earnings grow tax deferred until retirement, meaning your money grows faster than it would in a taxable account. If you’re an employer, PrimeVest Financial Services can help you set up a 401(k) plan. We’ll also meet with each of your employees annually to help them make prudent asset allocation decisions. For that matter, we’re happy to do the same for anyone with a 401(k) — even if your plan wasn’t set up by us. Though investment products are available at West Shore Bank offices, they are not deposits or obligations of West Shore Bank. Consequently, they are not guaranteed by any bank and are not insured by the FDIC. Please remember that all investment products involve risk, including the possible loss of principal. top
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