Planners help you through muddy retirement waters

Planning for retirement never has been easy. And changes to the tax code made by Congress in 1997 and 1998 have further muddied personal finance waters according to the authors of “Ways and Means Maximize the Value of Your Retirement Savings.”

Published by the Denver-based Esperti Peterson Institute, the book represents an impressive collaboration of 21 estate planning attorneys and 35 financial planners. A primary goal of “Ways and Means” is to take advantage of this interdisciplinary approach, to maximize retirement funds through astute estate planning and investment strategies.

The book’s seven chapters follow an easy-to-read format, and take a broad look at topics like IRAs, annuities and employer-sponsored retirement plans. Chapters consist of the questions most frequently asked by those seeking advice of financial planners and estate attorneys, with answers provided in a concise and informative manner.

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The design of the book allows readers to jump around as they see fit in order to read sections appropriate to their needs and to skip ones that aren’t.

An important aim of the book, says contributor David Partheymuller, is that readers gain an understanding of how vital some decisions are in the distribution phase of retirement planning. For example, thousands of dollars, sometimes hundreds of thousands, often can be saved simply by making minor changes in who is named the beneficiary of an Individual Retirement Account or similar retirement plan.

“People miss the opportunity to take the dollars they haven’t spent in their life and continue that tax-deferred nature all through their kids’ and grandchildrens’ lives,” Partheymuller said. The book’s final two chapters are devoted to the topics of taking distributions from retirement plans and estate planning.

Partheymuller, a financial planner in Lakewood, says there are several other things readers should take from the book.

One is that “tax-deferred growth beats taxed growth; it’s the most efficient way to save money, bar none,” he says. Wherever possible, investors should take full advantage of tax-deferred retirement vehicles, such as IRAs and 401k plans. At times, according to the book, it even makes sense to borrow money to fund such accounts.

And while saving for retirement, adds Partheymuller, people need to think of what sort of retirement lifestyle they desire. Will it be a house on the beach, a simple and modest existence, or a retirement spent traveling the world? In any case, planning should match the goals of the future retiree.

Above all is the familiar advice Partheymuller offers to simply “Save. You want to maximize the value of your retirement plans. Start as soon as possible and understand the rules.”

Readers won’t want to stop with “Ways and Means: Maximize the Value of Your Retirement Savings.” The book provides a solid foundation for understanding the complex rules surrounding retirement and estate planning.

Its 400-plus pages are meant to be followed by consultation with professional planners, Partheymuller says. “Unless you’re an expert in these things,” he adds, “and there are very few of those.”