RETIREMENT PLANNING FOR �REAL ESTATE AGENTS & INDEPENDENT CONTRACTORS�BUILDING WEALTH, REDUCING TAXES & PREPARING FOR RETIREMENT

By: Mervin Porto

Financial Services Adviser | Ca License 0M29408

Real Estate Agent | DRE #02144548

WHY RETIREMENT PLANNING MATTERS

You help clients build wealth every day.

• If you stopped selling homes tomorrow, how long would your savings last?
• How do you make sure you’ll have enough money to support the life you want to live in retirement?
• Do you know enough how to navigate the key considerations in retirement such as; taxation, compounding interest, liquidity, age restrictions, etc.?
• Are you prepared for unexpected life events?

Key Message:�Planning early provides more control over when and how you retire.

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WHY REAL ESTATE AGENTS NEED A RETIREMENT STRATEGY?

Benefits

• Financial security
• Tax-efficient savings
• More retirement options
• Family’s financial protection
• And more..

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Unique Challenges

• Responsible for navigating your own retirement route
• Variable commission income
• Limited safety net
• Longer life expectancy increases retirement needs

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Being an independent contractor means you're your own employer—and that includes being responsible for creating your own retirement plan. Starting early, choosing the right account, and contributing consistently can make a significant difference over time.

COMMON RETIREMENT PLANNING MISTAKES

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• Keeping too much cash

*idly losing value, not growing enough

• Depending only on future commission

* future is highly questionable, creates a lot of stress, not a dependable plan

• Waiting too long to plan: may mean having our retirement to wait as long
• Spending high-income years: spending before saving?

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• Relying only on real estate: not diver$ified, less liquidity, less growth potential, taxes due on gains
• No written retirement plan: non-commitment to your plan
• Not educated enough on retirement options: too distracted by the daily grind to have time to learn
• Ignoring healthcare costs:
• * this can drain your lifetime savings

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* Develop RETIREMENT SUCCESS HABITS.

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Retirement Success Habits

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✓ Start today: the best time to plant a tree was 20 years ago, the second best time is today

✓ Save consistently: only way to form a habit is to do a thing repeatedly

✓ Increase contributions over time: compounding interest as 8^th wonder of the world

✓ Automate retirement savings: you don’t see it, you don’t feel it

✓ Diversify investments: it will absolutely lower your risk

✓ Use tax-advantaged retirement accounts: grow more and keep more of your money

✓ Plan for healthcare costs: we cannot foresee the unexpected, but we can prepare for it

✓ Save, then Spend. Not the other way

WHAT YOUR RETIREMENT PLAN SHOULD ACCOMPLISH

• Generate Sustainable Retirement Income: maintain your desired lifestyle throughout retirement
• Minimize Taxes: keep more of your retirement savings
• Protect Retirement Assets: maintain financial stability despite market changes and unexpected expenses.
• Leave a Financial Legacy: your assets are distributed according to your wishes
• Other Retirement Goals you may have.

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RETIREMENT ACCOUNT OPTIONS

• Traditional IRA – lowers AGI
• Roth IRA – tax & penalty-free withdrawals, no RMDs
• SEP IRA – flexibility and higher contribution limit
• Solo 401(k) – lowers AGI, higher loan amount option
• SIMPLE IRA – mandatory employee matching
• Health Savings Account (HSA) – triple tax advantage
• Permanent Life Insurance – provides liquidity, no limit contribution, dual purpose estate protection
• Other Strategies: Taxable investment accounts, Real Estate investment, etc.

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• Nobody planned on being “broke”,
• they are “broke” because they didn’t have a plan.

BEYOND RETIREMENT ACCOUNTS

A successful retirement strategy often includes the following:

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1. Investment Accounts – annuities, bonds, gold, brokerage accounts, cash deposits, to name a few.
2. Rental Properties - residential/commercial, land,etc.
3. Emergency Savings – access to liquid assets such as savings, cash value from life insurance, other liquid investments.
4. Disability Protection – designed to replace our income when we cannot work due to injury and/or illness.
5. Life Insurance – provides financial protection not only for our family due to premature death but also when we get sick.
6. Estate Planning – instant transfer of our assets to our loved ones. Saves our family from the long and expensive probate process.
7. Income Protection Strategies – health insurance, supplemental coverage like cancer and accident insurance, and long term care plan.

RETIREMENT IS NOT ABOUT YOU STOPPING TO WORK. IT’S ABOUT HAVING OPTIONS.�

Think about;

1. Working because you enjoy it
2. Choosing your clients
3. Spending more time with your family
4. Traveling
5. Giving back
6. Serving your community

**Financially secure and fulfilling retirement creates STRESS-FREE retired life.

I HELPED CLIENTS:

• Understand their GOALS
• Evaluate their current financial picture
• Identify retirement opportunities
• Implement the right plan for them
• Adjust as their career and life evolve

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Again, the best time to plant a tree was 20 years ago.

The second-best time is today.

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Let’s schedule a complimentary, no-obligation, review to see your retirement preparedness, how we can reduce your taxes, and other key considerations and strategies you will need to protect and grow your assets and be prepared for tomorrow.