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Phone: 978-283-7079
888-283-2272

Father and DaughterRetirement Planning

The Trust & Financial Services Department can assist you with planning for the retirement road ahead. We will create a personalized plan by consulting with you, understanding your current financial situation and future needs to develop a plan that is the foundation of a comprehensive retirement strategy. This way, your retirement plan speaks to your individual needs, and it is not based on generalized demographics.

What to Do with Retirement Savings

Many of our clients have diligently saved money over the course of their lifetimes. Once they retire they ask, "Now what?" The challenge, and our objective, is to transform that accumulated savings into an income stream sufficient to support their desired lifestyles and last their lifetimes.

About Retirement Accounts

The government of the United States, as a matter of public policy, encourages its citizens to save for their own retirement. The obvious reason is to lighten a potential burden on social services. To that end, the Internal Revenue Service has created tax incentives for individual citizens to set a portion of their income aside for retirement savings in specialized retirement accounts.

Not only does this money not get exposed to income tax in the year it is received, it grows tax deferred until it's withdrawn from the retirement account. The classic example of an account of this type is the Individual Retirement Account or IRA.

Starting an IRA

Opening an IRA is relatively straightforward. It's a matter of completing a few forms. However, an IRA comes in two varieties, traditional, and Roth. A traditional IRA is funded with pre-tax dollars, that is, dollars that are typically invisible to Federal income tax at the time they're received into the account. The monies then grow tax deferred, meaning the gains and dividends are not taxed as they remain within the IRA.

These dollars are taxed as individual income when they are withdrawn from the IRA. A Roth IRA is funded with after-tax dollars, meaning money that the individual has already paid taxes on. Like the traditional IRA, the gains and dividends are not taxed because they grow within the IRA. However, withdrawals from the Roth IRA come to the individual tax-free because the dollars were taxed upon deposit to the IRA.

Administering an IRA

Cape Ann Trust & Financial Services Department acts as trustee for IRA accounts on behalf of its clients, chosen to suit the individual clients' needs.

Inheriting an IRA

IRAs are subject to complicated rules and regulations in the case of inheritance. Improper planning can result in catastrophic erosion of the asset-base.

Other Retirement Choices

There is a vast choice of retirement vehicles available to individuals and businesses. Contact us to find out more about your options.