Lykins Big L
Ron Lykins & C0 Tax Advisors 45 West Main Street  Westerville, Ohio 43081



Phone: 614-891-1041   Toll-free: 800-870-9523   Fax: 614-891-3283
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Ron’s Retirement Talk

by Ronald G. Lykins, CPA, MBA, Ph.D.
Volume 2

Issue 1

Financial & Investment Ideas for Retirement
 January, 2005
1. Review your investments with your investment advisor. For most of our clients this is Smith Barney. Contact Brian Edwards and his team at 614-473-2401, or 866-273-3726. Ascertain that your current holdings and asset diversification meet your risk tolerance and retirement goals.

2. Consolidate Your Investments. Many clients have investment accounts scattered among several firms making effective management very difficult. Be sure to include small 401(k)’s and IRA’s left with former employers.

3. Be Cognizant of Investment Fees & Hidden Expenses. Excessive fees and expenses are obviously a drag on performance and could make thousands of dollars difference in your retirement benefits. Mutual funds often have fees and expenses that exceed 2%. This is also true for many so called “no load funds”. Good investment advice and service is worth paying for, but trading costs and fees should be transparent.

Most of our clients at Smith Barney utilize professional money managers at an established fee. Depending upon the amount of money under management this fee will typically be in the 1-2% range with no other expenses or hidden costs.

4. Prepare or Update Your Retirement Plan. As a value-added service for our tax clients, Smith Barney will prepare a free retirement plan or review an existing plan. Contact Brian Edwards if you would like to avail yourself of this valuable service.

5. Put Your Savings and Investments on Automatic. Accumulating significant savings and investment accounts requires structure. I don’t know about you, but once Ruth and I put our paychecks in the bank the money is gone. Automatic funding of investment accounts like IRA’s will help ensure that you reach your retirement goals.

6. Maximize Roth Ira’s, Pensions, 401(k)’s, 403(b)’s, Etc. Most employers have a matching contribution of 401(k) dollars. For example, the employer might contribute 50¢ for each $1 the employee contributes up 6% of the employees pay. In my opinion, you should make the maximum contribution (typically 15%) you can possibly make.

7. Fund 2004 Roth “Tax-Free” IRA. If eligible, a taxpayer can fund up to $3,000 by April 15, 2005, for the year 2004. Taxpayers age 50 or more can fund up to $3500.

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