Retirement Financial Planning Tips

Preparing for retirement is something that we rarely think of when we’re young and busy with life. Establishing a career, opening a business, raising a family, enjoying social engagements and other aspects of a busy life tend to become all-consuming. Yet retirement planning is crucial for financial stability and peace of mind later in life. When considering your golden years, you may have questions about how much you need to save, the best methods of financial planning for retirement, which investments are the most sound, and more. Watkins & Co. is your go-to partner in retirement financial planning, providing sound guidance and financial advice, as well as assisting you in carrying out an established plan. 

How Much Should I Save for Retirement?

When thinking about how much you should save for retirement per month or how much should you have saved for retirement by age 55, or any other retirement-related question, you first have to assess your retirement needs and goals. You’ll want to plan for your expected retirement needs. This means you’ll need to estimate how much you’ll require annually for essential expenses such as housing, food, health care, utilities, transportation, and so forth. It’s also important to account for inflation, fluctuations in the market (if you’re not relying solely on savings in your bank account), cost of living increases, and for your life expectancy – it’s always wise to plan for living longer than expected, just to be safe. Then factor in any expenses for travel, hobbies, activities, family responsibilities, and other costs you’ll likely incur in retirement. Sound like a lot? You do not have to figure all this out on your own! You can use retirement calculators or consult with a Watkins & Co. financial planner to determine a specific savings target based on the above factors, your age, current savings, and expected retirement age.

What’s the key takeaway? Most financial advisors for retirement planning will tell you to save 10-15% of your income before tax. The ultimate goal would be to save this for at least 40 working years (for instance, when you are working from the ages of 25 to 45 years old). 

The reality of the situation, however, is that many Americans have not saved for retirement in their younger years and you may find yourself close to retirement with little to no savings. Do not panic! Sitting down with a Watkins & Co. financial retirement advisor can help you determine how to proceed based on where you are currently. Every situation is unique and you will deeply benefit from the expertise and guidance of a certified financial planner for retirement. At Watkins & Co., we take a full accounting of your financial situation, retirement savings objectives, and savings thus far to help determine a sound course of action moving forward. We can help you implement a savings and/or investment plan from this point on that will provide you with financial stability for your retirement years. 

Financial Planning Services for Retirement Jackson, MS

For the most reliable and best retirement financial planning services near Jackson, MS, stop by Watkins & Co. After decades of working in business and personal financial planning and accounting, our team has the qualifications and experience to help you achieve your financial goals for retirement. We are here to help pave the way to a smooth and enjoyable retirement! Give us a call today to learn more! 

2025 Tax Law Changes 

A new year often brings with it numerous federal tax and state tax changes which can greatly impact your financial planning for the year. Watkins & Co. is here to break down the anticipated tax law changes for 2025 and ensure that your tax knowledge is current so that you can make fully informed financial decisions this year. 

Federal Tax Law Changes 2025

Are you wondering, “Will personal exemptions come back in 2025?” Or, “What are the standard deductions in 2025?” You’re on the right track. In 2025, there are a few key considerations for upcoming tax changes that may play a large role in your tax planning.

The main 2025 federal tax changes revolve around the Tax Cuts and Jobs Act (TCJA) which was enacted in 2017 and which changed deductions, expensing, depreciation, and tax credits for individuals and businesses. At the end of 2025, TCJA is set to expire which means that without any legislative action, the end of this year will bring with it a reversion back to federal tax laws before TCJA was passed. What does this mean for you?

• Individual tax rates will revert back to levels before TCJA which will result in the top rate increasing from 37% to almost 40%.
• Standard deductions and personal exemptions were doubled and when TCJA expires, the standard deduction will decrease and taxable income calculations will increase. Essentially, you’ll be paying higher income taxes and the standard deduction will go down.
• An entire slew of deductions and depreciation factors were adjusted in TCJA to be more friendly to the individual or business. With TCJA ending, many of these are reverting back to original rates which will ultimately affect both personal and business bottom lines.
• Businesses will lose many of their tax credits that worked in their favor with TCJA. 

This entire year, we can all enjoy the benefits TCJA brings but planning for the expiration of this provision is essential. What we’ve shared here is simply a general overview of the tax reforms that you can expect. For more information on the changes that will come at the end of this year with the expiration of the Tax Cuts and Jobs Act, contact your tax professional at Watkins & Co. We can break down the ins and outs of the changes for you and determine which aspects may affect you the most. Most importantly, we can help you plan for these changes and minimize the impact of the TCJA expiration.

Tax Reforms for 2025

Other notable changes for the 2025 tax year are also important to consider. Standard deductions increase to $15,000 for individuals and joint filings increase to $30,000. Heads of household can expect $22,500 for the standard deduction in 2025. For this year, the top tax rate remains at 37% (but will increase to around 40% when TCJA expires). There are also changes to the alternative minimum tax exemption amounts, earned income tax credits, qualified transportation fringe benefit, health flexible spending cafeteria plans, medical savings accounts, foreign earned income exclusion, estate tax credits, annual exclusion for gifts, and adoption credits. Most changes this year work in the favor of the individual or business. To learn more about the tax changes this year and how they may affect you, contact our team at Watkins & Co. 

Our experienced tax accountants are standing by, ready to assist you with tax planning for the upcoming year. Watkins & Co. is here as your reliable partner in ensuring your financial future is stable and solid for this year and years to come. 

Business Entity Formation and Structure for Small Businesses

If you’re on the journey of beginning a new business, congratulations! That’s an exciting endeavor and the start of a new chapter of professional life. A vitally important and foundational step that can impact your venture’s future is selecting the correct business entity and structure. This decision can have a significant impact on your company’s long-term financial viability, protection, and growth potential. When it comes to making these important decisions, having a trusted and experienced business accountant by your side can make all the difference. Watkins & Co. has decades of expertise in advising new business startups and we are here to provide the support you need for creating a successful business foundation. 

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Business Expense Tracking and Reimbursement Tips for Small Businesses

As a small business owner, you may have found yourself bogged down with the ins and outs of financial hassles like keeping track of business expenses and managing reimbursements. But breathe easy – relief is just around the corner! With the right support and effective expense tracking methods, your small business can thrive. All it takes is a few game-changing tips for managing small business expenses and the right professional accounting team on your side and you’ll be set up for successful financial management.

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How to Set Up and Maintain Organized Financial Systems

Owning a small business has its fair share of challenges. As a business owner, you’re pulled in a hundred different directions each day. One of the most cited difficulties – and yet one of the most vital – is keeping track of financials. The most successful methods all begin with implementing the right systems and tools and end with properly maintaining those processes. 

Our team at Watkins & Co supports small businesses every day and we’re here to share some of the most effective business finance organization techniques for small businesses.

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Using Accounting Software And Technology To Streamline Small Business Operations

Today’s economy and business environment requires a certain amount of adaptability and  change-oriented mindset. Small business owners across America have to find ways of streamlining operations to maximize efficiency in order to stay competitive, and current technology offers a significant opportunity to do just that. Technology and software solutions for small businesses can make the biggest impact in accounting and financial management. 

By utilizing accounting software, you, as a small business owner can automate repetitive tasks, improve accuracy, and gain valuable insights into your business’ financial health. The most successful method of streamlining small business operations is a combination of accounting software along with the services of professional small business CPAs. Watkins & Co offer comprehensive small business financial services to ensure that your operations are running as efficiently and effectively as possible.

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3 Items Every Business Owner should have on their 2018 Tax Checklist

2018 TAX CHECKLIST

Tax situations are different for most businesses for the simple fact that all businesses are unique. This makes planning difficult for business owners working without  the proper guidance. The complexity of tax issues that comes from these differences are more than inconvenient. However, there are three things every small business owner can do to avoid penalties in the tax year.

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