Frequently Asked Questions - Retirement Planning Ohio

1. What is Safe Harbor Wealth Advisors?

Safe Harbor Wealth Advisors, LLC is an independent Registered Investment Advisor firm that offers a comprehensive range of wealth management services for anyone planning for retirement, nearing retirement, or already retired. We are available by appointment to sit down and discuss your long-term financial goals and put a plan together for retirement, long-term care, Medicare coverage, estate planning and more.

2. What services does Safe Harbor offer?

We provide:

And more! Contact us to schedule a complimentary consultation today.

3. How does the complimentary consultation work?

We offer a free, no-obligation consultation to review your financial status and provide tailored recommendations. You can easily schedule an appointment at one of our four convenient locations in Dublin, Ohio. During the consultation, we’ll explore your retirement goals and how our services can help you achieve them.

4. Can Safe Harbor help with 401(k) and IRA rollovers?

Yes, Safe Harbor specializes in facilitating rollovers from employer-sponsored retirement plans such as 401(k), 403(b), or Thrift Savings Plans into Rollover IRAs. Rolling over these funds allows you to maintain the tax-deferred status of your investments without incurring taxes or early withdrawal penalties. By moving your retirement savings into a Rollover IRA, you gain access to a broader range of investment options and the opportunity to consolidate multiple retirement accounts into one, simplifying your financial management.

5. What tools are used in retirement planning?

At Safe Harbor, we offer a variety of Individual Retirement Account (IRA) solutions tailored to your unique needs. Our options include Traditional IRAs, Roth IRAs, Rollover IRAs, and Beneficiary IRAs. Each account type has distinct tax advantages and investment opportunities, allowing you to diversify your portfolio and maximize retirement savings.

6. What happens during the planning process?

We conduct a thorough financial analysis and build a personalized plan based on your needs and goals, with ongoing adjustments over time.

7. Do you offer Medicare planning assistance?

Yes, Safe Harbor provides expert guidance on navigating the complexities of Medicare. Our team helps you understand your Medicare coverage options, including Parts A, B, C, and D, and supplemental plans. We work with you to assess your healthcare needs, ensuring you choose the right coverage while minimizing out-of-pocket expenses. Whether you’re new to Medicare or considering changes to your current plan, we’re here to make the process easier and more informed.

8. Where are your offices located?

We have offices in Dublin, Ohio.

9. How do you approach investment management?

We offer personalized investment strategies based on your unique financial goals, risk tolerance, and time horizon. Partnering with Gradient Investments, LLC, we manage portfolios through their proprietary 3-Axis Control System, which actively manages risk, strategy, and performance. Whether your goal is preserving capital, maximizing income, or growing assets, we create customized portfolios using a mix of stocks, bonds, and ETFs. Gradient’s portfolios, managed by a team of professionals, ensure your investments align with your long-term financial goals.

10. Can you help with long-term care planning?

Yes, Safe Harbor Financial Group, LLC offers comprehensive long-term care (LTC) planning to ensure you’re financially prepared for potential healthcare needs later in life. Long-term care covers services such as assistance with daily activities, nursing home stays, and in-home care, which are not typically covered by regular health insurance or Medicare. We help design a strategy to protect your assets and ensure you receive quality care, whether at home or in a facility. Our team customizes LTC plans to safeguard both your health and financial future.

11. Is Safe Harbor a Fiduciary?

Yes, we are fiduciaries and always act in the best interests of our clients.

For more information, please contact us or schedule a complimentary consultation today!

12. Why should I only work with a fiduciary?

Fiduciary advisors, like Safe Harbor Wealth Advisors, LLC, are legally required to prioritize their clients’ interests above their own. This standard, set by the Investment Advisers Act of 1940, is enforced by the SEC and state regulators. Unlike brokers, who follow a “suitability” standard, fiduciaries must provide advice that is in the client’s best interest, ensuring you receive guidance with your financial well-being at the forefront.

13. What are managed investment services?

At Safe Harbor, we take the complexity out of investing. Through our partnership with Gradient Investments, our managed investment services provide professional oversight for your portfolio, allowing you to focus on what matters most.

Why Choose Managed Investment Services?

Professional Oversight: Let experienced professionals select, monitor, and adjust your investments.
Tailored Strategies: Your portfolio is customized to align with your financial goals and risk tolerance.
Time-Saving Approach: Spend less time managing investments and more time enjoying life.
Peace of Mind: Rest assured knowing your portfolio is in capable hands.

With a hands-on approach to rebalancing and performance monitoring, we ensure your investments stay on track to meet your financial objectives.

14. Who are managed investment services suitable for?

Managed investment services are a perfect fit for:

Busy Professionals: Individuals who value a personalized investment strategy but lack the time to manage their portfolio.
Beginner Investors: Those with limited knowledge of investing who want guidance from seasoned professionals.
Retirees: People preparing for or currently enjoying retirement, seeking to protect and grow their wealth.
Goal-Oriented Individuals: Anyone saving for major life milestones, such as a home purchase, education, or a dream vacation.
Peace-of-Mind Seekers: Investors who want steady portfolio growth without the stress of day-to-day decision-making.

Whether you’re planning for the future or looking for professional guidance to navigate the complexities of investing, managed investment services can help you achieve your goals with confidence.

15. What information do I need to provide to start?

To get started, you’ll need to provide basic personal information, your financial goals, investment objectives, risk tolerance, and details about your existing assets. If applicable, having your tax documents or retirement account statements handy can help. Start with our free Risk Tolerance assessment and then schedule a complementary review of your investment goals.

16. Can I transfer an existing portfolio to your management?

Absolutely! Transferring your existing portfolio to our management is simple and hassle-free. Here’s how it works:

Seamless Transition: We’ll guide you through transferring your assets from your current brokerage or custodian to one of our trusted custodians.
Portfolio Review: Our team will carefully review your existing investments to assess how well they align with your financial goals and risk tolerance.
Optimization: Based on our analysis, we may recommend adjustments to optimize your portfolio for growth, income, or other priorities.
Logistics Management: We’ll handle all the details, ensuring a smooth and efficient transition with minimal impact on your investments.

Our goal is to make the process as easy as possible, so you can focus on what matters while we work to maximize your portfolio’s potential.

17. How will I know how my investments are performing?

We prioritize transparency and accessibility, giving you the tools and insights to stay informed:

24/7 Secure Online Access: Monitor your portfolio anytime through our user-friendly portal. View performance updates, account balances, and transaction history at your convenience.
Monthly Statements: Receive concise monthly statements that provide a snapshot of your account activity and performance.
Quarterly Reports: Get comprehensive, detailed reports every quarter, summarizing your portfolio’s progress and key metrics.
Regular Check-Ins: Stay on track with scheduled meetings to review your performance, discuss adjustments, and ensure your investments align with your evolving goals.

With these resources, you’ll always have a clear understanding of your portfolio’s performance and the confidence to achieve your financial goals.

18. How do you manage investment risk?

Managing risk is a core part of our investment strategy. Here’s how we do it:

Diversification: We minimize risk by spreading investments across a variety of asset classes, industries, and geographic regions, reducing the impact of market fluctuations.
Customized Risk Alignment: Your portfolio is carefully tailored to match your unique risk tolerance, ensuring you’re comfortable with the level of risk involved.
Regular Rebalancing: We routinely review and adjust your portfolio to keep it aligned with your long-term goals and strategy, adapting to changing market conditions when necessary.

Our proactive approach ensures that your investments remain balanced, optimized, and resilient to market volatility.

19. Can I make changes to my portfolio?

Absolutely! You can request changes to your portfolio at any time. While our advisors proactively manage your investments to align with your financial goals and risk tolerance, we recognize that your circumstances or preferences may evolve.

Collaborative Adjustments: Simply reach out to your advisor to discuss any updates or changes you’d like to make.
Flexible Approach: We’re committed to providing flexibility while maintaining a strategy that supports your long-term objectives.
Your Input Matters: Your feedback and preferences are always valued, ensuring that your portfolio reflects both your current needs and future goals.

We’re here to work with you every step of the way, adapting your investment strategy as life changes.

20. What sets your managed investment services apart?

Our personalized approach, experienced advisors, and use of cutting-edge technology ensure your investments are managed with care. We focus on building long-term relationships and providing unparalleled transparency and communication.

21. What sets your managed investment services apart?

22. How do I sign up for managed investment services?

Getting started is simple! First, schedule an initial consultation where we’ll discuss your financial goals, risk tolerance, and current investments. After this, we’ll create a tailored investment strategy for you and set up your account.

23. What is an annuity?

An annuity is a financial product offered by insurance companies designed to provide a steady stream of income, typically during retirement. You invest a lump sum or series of payments, and in return, the insurer pays you regular income, either immediately or at a future date. Safe Harbor Financial Group is a financial broker for annuity products and can help you add annuities to your existing retirement portfolio.

24. What are the different types of annuities?

There are several types of annuities, including:

Fixed Annuities: Offer guaranteed payments at a fixed interest rate.
Variable Annuities: Payments vary based on the performance of underlying investments.
Indexed Annuities: Payments are tied to the performance of a market index like the S&P 500.
Immediate Annuities: Start paying income almost immediately after purchase.
Deferred Annuities: Payments begin at a future date.

25. How does an annuity work?

Our clients make an initial investment (either a lump sum or periodic payments) into the annuity. For accumulation-type annuities, the insurer increases the value of your investment over time, typically with tax-deferred growth. Once you are ready to receive income, you can activate an income rider. This will provide a consistent stream of payments for either a specified period or for life, depending on the terms of the rider and the chosen annuity type.

26. Are annuities taxable?

Yes, annuities are taxable, but the tax treatment depends on whether the annuity is held in a tax-qualified account (like an IRA or Roth IRA) or is a non-qualified annuity:

IRA Annuities:
For annuities within traditional IRAs, any withdrawals or income payments are fully taxable as ordinary income. This includes both the original investment (contributions) and any growth, as contributions were typically made with pre-tax dollars.
Roth IRA Annuities: Annuities in a Roth IRA grow without tax implications, and withdrawals are not taxed if the account has been open for at least five years and certain age or qualifying event requirements are met. This includes both the original contributions and investment gains, making Roth annuities a powerful tax-advantaged tool for retirement income.
Non-Qualified Annuities:
For non-qualified annuities, taxes are deferred until you withdraw funds or start receiving payments. When you withdraw, the portion that represents investment gains is taxed as ordinary income, while the portion representing your original investment (your cost basis) is not taxed. The exclusion ratio is used to determine the taxable and non-taxable portions of each payment.

27. Can I withdraw money from my annuity early?

Yes, you can withdraw money from your annuity early, but there are potential costs to consider:

IRS Penalty:
If you withdraw funds before age 59½, you may incur a 10% IRS penalty on the taxable portion of the withdrawal. This is in addition to any ordinary income tax owed on the gains. However, certain exceptions (such as disability or specific hardship situations) may exempt you from this penalty.
Surrender Charges:
Many annuities impose surrender charges if you withdraw funds within the early years of the contract, often during the surrender period (typically 5–10 years). These charges gradually decrease and may eventually vanish.
Free Withdrawal Provisions:
Some annuities allow for penalty-free withdrawals up to a certain percentage (e.g., 10% of the account value) annually, even during the surrender period.
Impact on Benefits:
For annuities with income riders or other guarantees, early withdrawals may reduce the future income benefit or account value, potentially affecting the long-term benefits of the annuity.

28. How safe is my money in an annuity?

Annuities are generally considered a secure financial product because they are backed by the financial strength and claims-paying ability of the issuing insurance company. However, they are not insured by the FDIC, which means they do not have federal protection like bank deposits.

To enhance security, insurance companies are regulated by state insurance departments and typically contribute to state guaranty associations. These associations provide a level of protection up to certain limits if the insurer were to face insolvency, though the coverage varies by state.

At Safe Harbor, we select and manage annuity products that align with your financial goals. Our due diligence ensures we work with highly rated insurance companies to provide you with both stability and peace of mind.

29. What are the risks of annuities?

The risks of annuities vary depending on the type:

Fixed Annuities:
Fixed annuities provide guaranteed payments, but inflation risk may reduce the purchasing power of those payments over time. This means your fixed income might not keep pace with rising living costs.
Variable Annuities:
Payments and account value depend on the performance of underlying investments, such as mutual funds. This introduces market risk, meaning your returns (and potentially your income) could fluctuate and even decline during market downturns.
Indexed Annuities:
Returns are linked to a market index (e.g., the S&P 500), but caps on returns or participation rates may limit your earning potential, especially in strong market years. Additionally, floor guarantees (protection against losses) can sometimes be offset by lower overall returns.

Other general risks include:

Liquidity Risk:
Annuities often have surrender charges for early withdrawals during the surrender period, which can last several years. Accessing funds early may result in significant penalties.
Fee Risk:
Some annuities, particularly variable and indexed annuities, come with high fees, including management fees, mortality and expense charges, and fees for optional riders. These costs can erode your overall returns.
Issuer Risk:
The safety of your annuity depends on the financial strength of the issuing insurance company. While state guaranty associations provide some protection, they have coverage limits, and there is no federal backing for annuities.

A Safe Harbor advisor can help you navigate the risks of each type of annuity and recommend the option best suited to your retirement goals, risk tolerance, and financial needs.

30. How do I know which annuity is right for me?

Selecting an annuity depends on factors such as your:

Financial Goals: Are you seeking guaranteed income, growth potential, or a way to leave a legacy?
Age: Younger individuals may prioritize growth, while those nearing or in retirement may focus on income.
Risk Tolerance: Are you comfortable with market fluctuations, or do you prefer stable, predictable returns?
Retirement Needs: Do you want lifetime income, supplemental income for a specific period, or a combination of both?
Liquidity Needs: How soon might you need access to the funds, and are you comfortable with potential surrender charges?

A meeting with a Safe Harbor financial advisor can offer tailored recommendations specific to your financial needs. We’ll analyze your unique situation, explain the pros and cons of each annuity type, and guide you toward the best option for meeting your retirement goals.

31. Can I use an annuity as part of my retirement plan?

Absolutely. Annuities are a popular tool for supplementing retirement income because they provide guaranteed payments, helping to ensure financial stability throughout retirement. They can complement other savings vehicles, such as pensions, 401(k)s, IRAs, or Roth IRAs, by offering a predictable income stream to cover essential expenses or enhance your quality of life.

At Safe Harbor, we specialize in helping clients incorporate annuities into their broader retirement strategies. Our advisors will assess your unique financial goals, risk tolerance, and income needs to recommend the right annuity product for your retirement portfolio.