If you’ve ever owned a house, you know how much upkeep it requires. Something always needs to be fixed or replaced, and if small problems go unchecked for too long, they can turn into bigger problems. The same is true for retirement planning. Here are three important questions to ask yourself to keep your retirement plan up-to-date.
Are You Protected Against a Major Market Correction?
We saw a rise to record highs in 2021, but what will happen in 2022? 54% of American investors see the stock market heading for a crash, according to a recent Allianz survey.[1] There are reasons why we could see a major market correction, including the ongoing pandemic and new variants, labor shortages, inflation, and changing Federal Reserve policy. A market correction could pose a particular threat to you as you near and enter retirement, so act now to help protect what you’ve spent years earning. There are many strategies available to you so that you can be prepared for 2022 and beyond.
Are You Prepared for Potentially Higher Taxes in the Future?
We could see increased government spending and changing tax policy in 2022 and beyond. This could mean higher tax rates, new taxes, or changes to the rules that mean you have to re-think your tax strategy. Taxes could be one of your biggest expenses in retirement, and it’s important to have a long-term tax minimization strategy integrated into your overall retirement plan and update it when necessary. When you retire, your tax situation will likely change because you won’t receive a paycheck anymore. Know how that will affect your tax situation and how you might need to change your strategy.
Do You Need to Update Your Retirement Account Beneficiaries?
Maybe you designated a beneficiary when you first established your retirement account and haven’t looked at the paperwork since. During that time, you may have gotten married, divorced, had children or grandchildren, or become involved with a charity you would like to leave money to. Even if you updated your will or set up a trust, you need to update your retirement account beneficiary because beneficiary designations trump will and trust directives. For example, you may want to divide your IRA equally among your children, but your current plan only has your oldest child named as beneficiary because you forgot to make updates when your other children were born.
At Epstein & White, we’ll be with you during your entire retirement journey to help you get your financial house in order. We understand that creating a comprehensive retirement plan isn’t a one-and-done task – it requires upkeep and maintenance. Click here to schedule your meeting with us to discuss your retirement goals and how we can help you pursue them.
Please Note: Epstein & White is a tradename. All services provided by Epstein & White investment professionals are provided in their individual capacities as investment adviser representatives of Mercer Global Advisors Inc. (“Mercer Advisors”), an SEC registered investment adviser principally located in Denver, Colorado, with various branch offices throughout the United States doing business under different tradenames, including Epstein & White. Information contained herein is for informational and illustrative purposes only and general in nature. It should not be considered investment advice or a recommendation to buy or sell any type of securities or insurance products and no investment decision should be made based solely on any information provided herein. We provide this information with the understanding that we are not engaged in rendering legal, accounting, or tax services. We recommend that all investors seek out the services of competent professionals in any of the aforementioned areas.
Investment in securities carries a risk of loss, including loss of principal amount invested. Different types of investments involve varying degrees of risk. It should not be assumed that diversification or asset allocation protects a portfolio from loss or that such will produce profitable results. An annuity’s guarantee is subject to the claims-paying ability of the issuing insurance company.
