You’ve worked hard and saved diligently, and now you're in retirement or on the doorstep of it. You’ve run the numbers. You might even have a sizable nest egg. So why do you still feel uneasy? That lingering anxiety is more common than you think, even among those who appear to be financially prepared for retirement. And it often comes down to one surprising truth: saving enough isn’t the same as having a plan to make [...]
Understanding the Shift from Accumulation to Income As a financial advisor, one of the most common questions I hear—especially from clients entering retirement—is: “What should I actually do with these savings I’ve amassed for retirement?” It’s a great question. And it usually signals something deeper: the start of the distribution phase of retirement. You’ve spent years in the accumulation phase working, saving, and investing. But now, the mindset begins to shift. It’s no longer just about [...]
Most retirees don’t fear market crashes or inflation nearly as much as they fear one very real possibility: running out of money. And yet, many financial plans focus on growing your nest egg, not preserving and distributing it over a retirement that could span decades. The Longevity Problem This is the core of longevity risk1—the risk of outliving your assets. Thanks to advances in medicine and healthier lifestyles, it’s now common for people to spend 25 [...]
For many retirees, Social Security isn’t just a monthly deposit—it’s the foundation of their entire retirement income. But choosing when to claim it isn’t as simple as picking a birthday and signing paperwork. It’s a decision with lifelong consequences. Consider claiming early, as it may potentially lead to a reduction in your annual expenses. It's important to have a financial plan to avoid potential income loss. In a world where every dollar in retirement counts, the [...]
For those nearing retirement, there’s one truth that becomes increasingly clear: the window to build wealth narrows with each passing year. While starting early is always ideal, it’s not too late for pre-retirees in their 50s or early 60s to make meaningful progress toward financial security. In fact, now is the time to double down on savings—and fortunately, there are tools designed to help. A recent report revealed that retirement savings balances have reached a new [...]
Birthdays in retirement aren’t just a reason to celebrate—they’re also checkpoints that can unlock new financial opportunities (or trigger important deadlines). From Social Security eligibility to Required Minimum Distributions (RMDs), several key ages mark turning points in your retirement journey. Here are four birthday milestones every retiree should know—and what they mean for your financial strategy. Age 59½ – Penalty-Free Access to Retirement Accounts Reaching age 59½ marks the first major turning point in retirement account [...]
Imagine transitioning into retirement not as a sudden leap but as a gradual, comfortable glide. This approach, known as phased retirement, is gaining popularity. It allows people like you to reduce working hours over time, allowing a smoother shift from full-time employment to full-time retirement... and it even has financial benefits. But doing it right is key. What is Phased Retirement? Phased retirement is an arrangement where employees nearing retirement age gradually decrease their working hours [...]
Navigating the intricacies of retirement accounts can often feel like charting unfamiliar territory. Whether you're adjusting your investment portfolio or considering contributions and withdrawals, understanding the tax implications is crucial to maximizing your retirement savings. Let's delve into how transactions within Individual Retirement Accounts (IRAs) and 401(k) plans are taxed and how these differ from contributions and withdrawals. Internal Transactions: Selling Stocks Within IRAs and 401(k)s Imagine your retirement account as a greenhouse nurturing your investments. [...]
Annuities have long been a cornerstone for those seeking a steady income stream in retirement. However, the financial landscape is ever-evolving, and what worked a few years ago might not be the best fit today. With rising interest rates, inflation concerns, and innovative annuity products entering the market, now might be a great time to reassess your annuity strategy. Capitalizing on Higher Interest Rates Since 2022, the Federal Reserve has steadily increased interest rates, only slowing [...]
Retirees aiming to reduce their taxes in retirement can benefit from strategic conversions and transfers between traditional and Roth Individual Retirement Accounts (IRAs), especially when considering the timing and financial landscape. Identifying optimal windows for Roth conversions can lead to potential tax advantages and could contribute to retirement income. Here are key opportunities to consider: During Market Downturns Market declines can present a prime opportunity for Roth conversions. When the value of your traditional IRA decreases [...]