Congratulations. You’re here because you know the person that matters most in your retirement planning is you. And no matter what stage you’re in – early in your career, actively contemplating retirement or already retired – we’re here to help.
Use these resources and tools to learn more about the risks and concerns you’ll face – as well as the opportunities – as you make your retirement plans. Simply click on the button above that best represents where you are in your retirement planning process and follow the steps.
Benefits of starting early
Compounding Interest
The main benefit of starting early is to take advantage of compounding interest. Compounding interest allows you to earn interest on both the principal you invest and the interest you earn – potentially enabling you to turn a small sum into a substantial one over time.
It’s important to understand how building up your assets now will help you cover your expenses and achieve your goals in retirement. Learn more…
When saving for retirement, or another future goal, consider using dollar-cost averaging as a strategy – the process of making regular investments on an ongoing basis, regardless of price; for example, buy 100 shares of an investment each month, quarter or year. You are aiming to buy more shares of a security when its share price is low, and fewer shares when its price is high. Over time, it’s likely the average cost per share will be lower than the average market price. For many, this is the most realistic way to save toward retirement because these periodic investments come from paycheck as opposed to having a lump-sum of money to invest all at once.
Dollar-cost averaging cannot guarantee a profit or protect against a loss, and you should consider your financial ability to continue purchases through periods of low price levels. The example provided is hypothetical and given for illustrative purposes only. It does not represent an actual investment.
Managing Risk
Diversification is key to managing risks
At this stage in life, you may discover you are starting to think more about a balanced portfolio than
someone investing for retirement or in retirement. We can work with you to identify the risks most relevant to your situation, as well as to determine the appropriate allocation of assets to balance these risks, which may include:
| Market | Fluctuation or volatility in the performance of financial markets. How and where your assets are allocated across different asset classes plays a key role in managing market risk. |
| Inflation | Costs of goods and services increase over time. Your cost of living at retirement might be higher than it is now, as inflation erodes the value of your savings and reduces your purchasing power over time. |
| Longevity | Longer life expectancies mean the assets you save toward retirement will need to last longer. As you determine your savings goals, consider you may need your assets to generate income throughout a 20- to 30- year retirement. |
Diversifying your savings among several asset types may enable you to take advantage of growth potential in different sectors and various financial markets. You may want to avoid placing your retirement savings in one type of asset, so to balance performance in times of market fluctuation. Also consider dollar-cost averaging which is the process of making regular investments on an ongoing basis, regardless of price. This can make the average cost of your investments lower than the average market price over time. Although dollar-cost averaging may not mitigate market, inflation, and longevity risks, it typically offsets their impact on the value of your investments.
Contact us for more information on how we can work together to manage these risks by applying a comprehensive process to plan for your retirement.
Diversification and Dollar cost averaging do not assure a profit and does not protect against loss. Dollar cost averaging involves continuous investment regardless of fluctuating price levels of such securities. Investors should consider their financial ability to continue purchases through periods of low price levels.
Managing Life Changes
Whether you’re changing careers, buying a new house or starting a family, we can help you live the life you choose today, while still prudently planning for the future.
Wherever your work or life leads you, we can assist you in managing your cash flow and allocating your resources, helping you reach both your short- and intermediate-term goals without endangering your long-term plans.
Please contact us so we help you determine an appropriate course of action for your retirement plan.
 | If you’re planning to buy a new home, we can help you allocate an appropriate portion of your holdings to investments designed to facilitate that purchase. We can also assist with managing the funds needed for your changing lifestyle, including mortgage, property taxes and related expenses. |
 | If you’ve recently started a family – or are contemplating doing so – we can help you optimize your investments, meet the expenses you will incur over the next several years and help make sure your life goals are achievable and realistic. |
 | As you change employers – or go to work for yourself – you typically have several options for dealing with the funds you’ve accumulated in your former employer’s retirement plan, such as a 401(k) or 403(b). The option you choose could have significant tax implications or alter your existing retirement plan. |
Making a Plan
At this stage in your life, your goal should be to begin building up enough assets to provide adequate income to meet your needs throughout retirement – accounting for factors like increased longevity, healthcare costs and inflation. To accomplish this goal, you need a plan.
How Much Money Will You Need?
To maintain your standard of living, a general rule of thumb suggests your annual retirement income should equal approximately 80% of your income the year you retire. So, if you determine you’ll earn $100,000 the year you retire, you’ll need to save enough to provide $80,000 per each year you are retired.
It’s important to think through how much income you’ll need to cover your expenses and achieve your goals in retirement. Learn more
Once you’ve evaluated your income needs for retirement, it’s time to develop a well-crafted retirement plan. We can help guide you through this often complex process, which can involve different strategies, each with possible tax deferred advantages. These strategies may include:
- Contribute to your employer’s retirement plan, such as a 401(k) or 403(b), and take advantage of match programs; consider automatic payroll deduction for dollar cost averaging. Or a discussion of your previous employer’s plan options.
- If you don’t have an employer plan, or if you wish to invest separately from your employer sponsored plan, consider investing regularly using an Individual Retirement Account (IRA). You may wish to discuss the tax implications of both traditional and Roth IRAs to determine which best meets your needs.
| Traditional IRA | You may be able to deduct the contribution from your income taxes, depending on participation in a workplace plan and income. |
| Roth IRA | You do not receive the income tax deduction. But, when you reach retirement age, you are able to take qualified withdrawals tax-free.* |
| Simple And SEP IRA | There are other tax-deferred retirement saving options to consider if you are self employed or a small business owner |
*Unless certain criteria are met, Roth IRA owners must be 59½ or older and have held the IRA for five years before tax-free withdrawals are permitted.
You should discuss any tax or legal matters with the appropriate professional.
In an IRA, Investment-related expenses may include sales loads, commissions, the expenses of any mutual funds in which assets are invested and investment advisory fees. We can review all of the allowed options, such as keeping your 401(K) at your former employer, rolling it to your new employer, moving it to your own IRA or taking a distribution. Each option has potential benefits and drawbacks, so we’ll help educate you based on your individual situation.
Assessing Your Current Situation
Do you know how much income you need your assets to generate once you retire?
Chances are you should reevaluate your retirement plan. Your financial circumstances, personal situation or retirement goals may have changed since the last time you reviewed your plan. Market turbulence may also have adversely affected your portfolio, making a fresh look important.
As you revisit your plan with us, we will take a look at factors such as:
- Your income sources
- Your assets and anticipated expenses
- The rate at which you’ll be able to spend in retirement
You’ll also want to consider what appropriate adjustments may entail for you, for example:
- Paring non-essential spending
- Reallocating your investment assets
- Reevaluate your retirement priorities and discuss tradeoffs
Contact us for help with reviewing your retirement plan and making the necessary adjustments to help put you on the path to a comfortable retirement.
There is no assurance that any investment strategy will be successful. Investing involves risk and investors may incur a profit or a loss. Past performance is not indicative of future results.
It’s very important to ensure that your assets are on target to generate the income you’ll need to cover your expenses and achieve your goals in retirement. Learn more…
Give Your Plan a Checkup
Once you’ve retired, managing your money is more important than ever. During your retirement years, your personal goals and situation — as well as the economic environment — are likely to shift. These changes require careful scrutiny, perhaps resulting in adjustments related to your goals, your portfolio or both. The video below can assist in visualizing how your income sources and retirement assets fund your needs and wants in retirement.
We can work with you to review and reassess your portfolio to help give you confidence that your portfolio is appropriately balanced between growth-oriented investments and income-focused assets. Contact us today.
Healthcare Considerations
Many retirees underestimate how much they’ll need to cover healthcare expenses. In fact, a Center for Retirement Research study recently estimated out-of-pocket costs for a healthy 65-year-old couple to be $260,000 to $570,000 for their entire retirement. Income from investments and Social Security can go toward paying ongoing medical costs, such as Medicare premiums, deductibles and copays, but as healthcare costs continue to rise, this could place a significant strain on your retirement. We can work together to help anticipate your healthcare expenses in retirement and account for them within your overall retirement income plan.
Another risk-management option is long-term care insurance, which covers a range of nursing, social and rehabilitative services for people who need ongoing assistance due to a chronic illness or disability. While you can’t know for sure if you’ll need long-term care or for how long, a comprehensive policy can help you plan for the unexpected.
Some people choose a policy to help:
- Protect assets
- Add options for quality care
- Relieve family and friends from the stress of providing care
- Preserve their independence, dignity and financial freedom
To learn more read a white paper about how healthcare costs could affect your overall retirement income 
plan.
Learn more about retirement income planning and how healthcare expenses factor into your overall plan.
These policies have exclusions and/or limitations. The cost and availability of Long Term Care insurance depend on factors such as age, health, and the type and amount of insurance purchased. As with most financial decisions, there are expenses associated with the purchase of Long Term Care insurance. Guarantees are based on the claims paying ability of the insurance company.
Legacy Planning
Depending on your financial situation, you may be confident you can fund a comfortable retirement and still allocate funds to leave an inheritance for family members or to donate to a favorite charity. The first priority should be ensuring your expenses can be met before you leave a monetary legacy behind.
We can assist you with your estate and legacy planning, including helping you to optimize your assets, potentially mitigate tax implications, and determine the course most appropriate to your situation. In addition, we can help you select effective vehicles to implement your plans.
Keep in mind that money isn’t everything. Passing on ideals, such as ethics, morals, faith and religious beliefs, is 10 times more important to both baby boomers and their parents than the financial aspects of inheritance, according to the 2006 Allianz American Legacies Study.
Contact us to learn how we can help you to optimize your assets, potentially mitigate tax implications, and determine the course most appropriate to your situation, including the selection of effective vehicles to implement your plans.
There is no assurance that any investment strategy will be successful. Investing involves risk and investors may incur a profit or a loss. Past performance is not indicative of future results.
Please note, changes in tax laws or regulations may occur at any time and could substantially impact your situation. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of Raymond James we are not qualified to render advice on tax or legal matters. You should discuss any tax or legal matters with the appropriate professional.
Withdrawals and Tax Implications
In addition to Social Security benefits, you probably have at least one IRA, 401(k), pension plan or other assets you’re relying on now for income – or counting on later – to finance your retirement years. At this stage we feel that you should work with a professional to maximize the benefits you receive from any withdrawals you are making or plan to make.
Consider how much you need to withdraw from your assets to maintain a sustainable income flow during retirement. Learn more …
Below are some common retirement investments and key considerations for withdrawing your money:
| Investments | Considerations* |
|---|---|
| Taxable Accounts | (i.e., brokerage, savings and checking accounts) Withdrawing from these accounts first allows more time for tax-free and tax-deferred plans to potentially grow. |
| Tax-Free/Tax-Deferred Plans | (i.e., Tax-Free – Roth IRA; Tax-Deferred – traditional IRA) You are required to begin withdrawing money at age 72½, but may consider reinvesting proceeds elsewhere if you do not need the immediate income. |
| Social Security Benefits | The longer you wait to tap these funds, the larger your monthly benefit will be when you do decide to take it. You are required to begin taking benefits at age 70. |
We can help develop a withdrawal strategy that takes all of these considerations into account. Contact us today.
* Investors should consult with a tax advisor to determine the tax implications of the withdrawal strategies.
There is no assurance that any investment strategy will be successful. Investing involves risk and investors may incur a profit or a loss. Past performance is not indicative of future results.
Please note, changes in tax laws or regulations may occur at any time and could substantially impact your situation. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of Raymond James we are not qualified to render advice on tax or legal matters. You should discuss any tax or legal matters with the appropriate professional.
Tapping Social Security
Although you’re entitled to draw Social Security benefits as early as age 62, tapping into your benefits before full retirement age can permanently reduce your benefits. In general, electing to delay your benefits past full retirement age – up to age 70 – will increase the amount you are eligible to receive.
When to start taking Social Security benefits depends in large part on your income needs and your health. It’s also important to consider how the amount of your monthly benefit might affect your overall retirement plan, including implications for withdrawal rates and your tax situation, among other factors.
Learn more about how Social Security fits into your retirement picture.
Contact us so we can help you choose the strategy most appropriate for you.
Coping With the Unexpected
Widespread economic weakness and market fluctuations have taken a toll on many investors. If you are at all concerned your retirement plan may no longer be sufficient to meet your needs, don’t delay taking action. While there are no magic fixes, a number of effective strategies do exist for potentially mitigating losses, generating additional income and planning for growth, including:
- Planning for long-term care needs not covered by Medicare or other insurance
- Paring your spending and rethinking non-essential goals
- Preserving income with financial products, such as annuities1
- Hedging income against rising inflation with investment options that adjust to changes in the inflation rate, such as Treasury Inflation-Protected Securities (TIPS)2
- Returning to work on either a full-time or part-time basis
We can help you look at your retirement plan comprehensively, determine if you have any gaps, and help you identify ways to potentially minimize losses in order to stay on track in retirement. Contact us today to get started.
There is no assurance that any investment strategy will be successful. Investing involves risk and investors may incur a profit or a loss. Past performance is not indicative of future results.
Please note, changes in tax laws or regulations may occur at any time and could substantially impact your situation. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of Raymond James we are not qualified to render advice on tax or legal matters. You should discuss any tax or legal matters with the appropriate professional.
1Guarantees are based on the claims-paying ability of the issuing company.
2The principal increases with inflation and decreases with deflation, as measured by the Consumer Price Index. At maturity you are paid the adjusted principal or original principal, whichever is greater. Increases in TIPS principal value as a result of inflation adjustments are taxed as capital gains in the year they occur, even though these increases are not realized until the TIPS are sold or mature. Conversely, decreases in the principal amount due to deflation can be used to offset taxable interest income.
- Calculators
- Questionnaires
These calculators are hypothetical examples used for illustrative purposes and do not represent the performance of any specific investment or product. Rates of return will vary over time, particularly for long-term investments. Investments offering the potential for higher rates of return involve a higher degree of risk of loss. Actual results will vary.
In our disciplined approach, we assist you in visualizing, and understanding, how your income sources and retirement assets will fund your needs and wants in retirement. Key considerations we will evaluate include:
- What are the basics you need during retirement?
- What do you want to enjoy during retirement?
- What income sources are available to pay for expenses during retirement?
- What retirement assets do you have, or might have down the road, to fund your retirement?
Watch the video below for an introduction to the key components of our approach to helping you evaluate retirement. At the end of the video, take advantage of options to learn more, such as exploring the elements of your retirement picture, or taking a financial inventory.
Contact us to take an important first step in your retirement income planning process.