Retirement Planning
Hemenway Trust Company provides professional retirement planning services, including investment advice and management for your Individual Retirement Account (IRA), Roth IRA, self-employed pension plan (SEP), or 401k or other qualified retirement plan that you choose to roll into your IRA. Hemenway Trust Company can help you achieve a secure and rewarding retirement, applying to your retirement assets the same investment philosophy we apply to trust assets.
We will structure your retirement account specifically for you, both by reviewing your goals for that particular account and by looking at the role it plays within your overall investment portfolio. With no products or investment funds to sell, we have the independence to do what is best for our clients.
Additionally, we provide comprehensive reporting for all your assets so you have a full picture of your total portfolio’s performance. Our technology allows us to gather information electronically from your other investment accounts, regardless of where they are managed, and produce a single statement showing your entire universe of holdings. This comprehensive view enables us to arrange your asset allocation appropriately.
Coordinating Your Retirement and Estate Planning
We take a 360-degree view. Unlike many investment advisory firms and trust companies, we can review your estate plan and integrate your retirement accounts according to your wishes and in a tax-efficient manner. We can help you manage required minimum distributions (RMDs), strategize about naming beneficiaries and consider ways to mitigate the income tax burden after death. Working collaboratively with the attorneys at Hemenway & Barnes LLP, our affiliate law firm, we can help coordinate the necessary legal documents or we can work with your existing advisors.
Charitable Giving with Retirement Assets
Giving from IRAs is one of the most tax efficient ways to make charitable contributions. Distributions from traditional (i.e. not Roth) IRAs to beneficiaries are taxed at ordinary income rates, and once an IRA beneficiary is required to start taking RMDs, income taxes can increase quite a lot. Making so-called qualified charitable distributions (QCDs) from an IRA can reduce this income tax burden while satisfying the IRA owner’s charitable goals. In addition, satisfying bequests to charity from IRA assets can dramatically reduce both estate and income taxes otherwise due after the IRA owner has died. Together with Hemenway & Barnes LLP, our team of advisors includes tax and investment professionals, lawyers specializing in estate planning, and philanthropic advisors who can tailor solutions to meet your individual needs and vision for philanthropy.
Featured Article
Important Retirement Account Changes Under the SECURE 2.0 Act of 2022
On December 29, 2022, the SECURE 2.0 Act of 2022 was signed into law as part of the Consolidated Appropriations Act 2023. SECURE 2.0 seeks to encourage savings for retirement. Here are a few of the important changes for those near retirement, those not near retirement and ALL of those saving for retirement.
Our Investment Philosophy
We invest directly in individual stocks of companies that are growing their earnings and dividends and that have clean, transparent balance sheets with sound management. Our investment philosophy is to invest in companies and products that you will understand. Absent compelling reasons, we would not typically invest your retirement accounts in hedge funds or alternative investment products. Our investment style is designed so that you can know and understand the business of each company we hold.
When Should I Meet with an HTC Advisor?
Very often, life events prompt individuals to seek financial advice – for example marriage, divorce, retirement or an inheritance, to name a few. Sometimes your finances increase in complexity, or you feel that you have a lack of time or financial expertise. In all these scenarios, a Hemenway Trust Company advisor can help tremendously.
Our advisors keep abreast of changes in legislation, investment and insurance regulations, the economy, and investment products and vehicles. We handle all this research for you, and help you manage your finances in accordance with these rules, regulations and new developments.
