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Retirement Planning

It’s never too soon to start saving for retirement.  The sooner you start, the less money you need to save each month as it has more chance to grow.  That brings you a step closer to a secure retirement.

The first step is planning and figuring out what your priorities are.  Some questions are very broad.

  • When do you want to retire?
  • What will you do? Would you like to move or to travel?
  • Will you have enough money to allow more choices?

Other questions are more specific.

  • What bills will you still have?
  • What’s the best time to start claiming social security, especially if you’re married and your spouse is a different age?
  • What investment types are best for you?

Don’t know where to begin?  Let the Lowell Five Banking team and Lincoln Investment* help you.

Retirement Planning and Financial Modeling

The first step in retirement planning is figuring out where you are on the journey.

Start with a financial wellness check from KAF Financial Advisors, LLC.* Their experienced financial planners can advise you on investments, retirement planning and more.

Why KAF?

KAF Financial Advisors specialize in investment management and financial planning.  They are devoted to building trust with their clients over the long-term. Investing goes beyond just buying or selling stocks. The KAF team will look beyond a cursory short-term view to develop a customized long-term financial plan to suit your needs and allows you to achieve your retirement dreams.

Lowell Five reviews all requests to ensure the right fit.  Then your KAF advisor will meet with you at one of our 16 convenient Lowell Five Branches or our corporate headquarters in Tewksbury.

Starting a Plan

This process starts with listening and building trust.  The experienced financial planning team will gather information to understand your financial life, goals, and risk tolerance.  This will allow the team to find opportunities to improve your financial standing and result in a plan to help serve you and your family.  Financial Modeling will assess your current situation and predict if you have enough savings, insurance or healthcare coverage as well.

A retirement plan should give you the ability to retire when you choose.  It will outline strategies to help you build and sustain assets to allow a more income in retirement, and a more comfortable future.

As independent advisors and fiduciaries, KAF Financial Advisors have access to a wide range of investment insurance products through Lincoln Investment, which allows them to deliver the best possible solution for you and your family.

*Check the background of these financial professionals on FINRA’s Broker Check.

Retirement Accounts from Lowell Five

In addition to planning services, Lowell Five offers several Retirement savings options:

  • A traditional IRA grows tax free and taxes are paid when you reach retirement age (and likely owe fewer taxes due to a lower income). You may also be able to take a tax deduction on money you contribute. View traditional IRA details 
  • Roth IRA contributions come from money after taxes but are tax free when you start taking contributions during retirement. View Roth IRA details
  • An SEP-IRA is a retirement plan that allows a self-employed individual to make contributions for him/herself and any eligible employees. A SEP, which stands for Simplified Employee Pension, eliminates complicated government reporting. View SEP IRA details
  • We also offer a host of Retirement CDs, including our special Amplifier IRA CD – a 12-month CD designed to simplify saving. Features include a low minimum balance, preferred interest rate, and a regular deposit schedule so you can decide how much and how often to deposit.*
  • If you have funds in multiple retirement accounts we can also help you transfer or rollover the money in order to consolidate, making it easier for you to track your retirement funds.  View rollover details

Contact our IRA Department at 978-452-1300 to open an IRA today.

Annuities from SBLI

Lowell Five also can put you in touch with SBLI (Savings Bank Life Insurance of Massachusetts), which offers a number of annuity options.  Annuities pay a set amount of income for a set period and are a good way to ensure some income in retirement.  You can often turn the cash value of an insurance policy into an annuity.

SBLI Optimizer MVA Deferred Annuity annuities are one of the most popular investment options.

  • Your initial investment and earnings grow tax-deferred until payouts starts on a future date of your choice.
  • You can access funds without penalty in the case of a terminal illness or other critical event.
  • You won’t need to pay federal or state taxes until you begin to make withdrawals.

What Is An Annuity?

An annuity is a contract between you and SBLI that helps you accumulate savings and interest that you can withdraw when you need to.  You either receive a lump sum payment or a series of payments over time.  With an annuity, you generate guaranteed retirement income.

Benefits of Annuities

Annuities are perfect for generating income in retirement because they provide you with regular payments over the course of your entire life – or for as long as you choose.

  • Tax-deferred growth
  • Competitive interest rates
  • Several payment options to fit your income needs
  • Direct payment to a named beneficiary to avoid probate
  • Safe, reliable vehicle for retirement income

Some important items to remember

  • Annuities are investments and may lose value.
  • They are not insured by the FDIC and have no bank guarantee. Generally, however over the long term, investments gain value.
  • Like many other tax-deferred accounts or investments, there is a penalty for withdrawing money from the annuity before you reach age 591/2.
  • When you do withdraw funds from an annuity or start getting payouts, the payments will be subject to income tax.
  • Income is taxed at a higher rate than capital gains, which is the profit you get from a mutual fund or stock when it increases in value.
  • You are also likely to pay “surrender charges” if you withdraw money before the annuity “vests” or is held for a certain length of time, generally about 5-8 years.

If you still have questions, aren’t sure where to start, or want to consider investments for retirement, contact us –  Lowell Five can help you achieve future financial security.

The products offered: (i) are not FDIC insured; (ii) not deposits or obligations of Lowell Five Bank or its affiliates; (iii) not guaranteed by Lowell Five Bank or its affiliates; (iv) not insured by any federal government agency; (v) may go down in value.

Lincoln Investment and Lowell Five Bank are not affiliated. Advisory services offered through Capital Analysts and Lincoln Investment. Registered Investment Advisors. Securities offered through Lincoln Investment, Broker/Dealer, Member FINRA and SIPC. KAF Financial Advisors, LLC and the above firms are independent and non-affiliated. Legal services associated with estate planning, tax or social security claiming are not offered through, nor supervised by, The Lincoln Investment Companies.

Rates are subject to change • Not FDIC Insured • No Bank Guarantee • May Lose Value • Not a Deposit • Not Insured by any Federal Government Agency • This product is subject to investment risks, including possible loss of principal • The safety of your principal and interest is solely dependent upon the company’s financial condition • © 2018  Lowell Five Bank. © 2018 The Savings Bank Mutual Life Insurance Company of Massachusetts, Woburn, MA. All rights reserved. NAIC  #70435.


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