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
First, make sure your retirement team is in place, starting with your financial advisor. Depending on your situation, we may also act as your team’s “quarterback,” coordinating and working with family members, your CPA, an estate attorney, and insurance and trust professionals.
Next, establish your priorities. We can assist you in understanding factors that will impact your retirement plan, such as your retirement lifestyle, risk tolerance, retirement date, unknown risks and your desire to support your family members or a favorite charity.
You must also have a thorough understanding of your situation. We can assist in putting your retirement into perspective by taking a financial inventory, which includes identifying your income sources and assets and distinguishing between your needs and wants.
Legacy Planning
You may want to fund a comfortable retirement, while still allocating funds to leave an inheritance for family or donate to a charity. But your first priority should be to ensure your expenses can be met before you leave a monetary legacy behind.
We can assist with estate and legacy planning, including helping to optimize your assets, potentially mitigate tax implications, and determine the course most appropriate to your situation. We can also help select effective vehicles to implement your plans.
Evaluating Your Retirement Income
Although many individuals nearing retirement have at least one 401(k), IRA or defined benefit plan, rarely will those income sources meet the full range of retirement expenses.
By working with us, we can help determine how much you will need to withdraw from your retirement portfolio to live comfortably in retirement. The less you withdraw, the better your chance your assets can generate income through the duration of your retirement. The general rule of thumb is a maximum withdrawal of 4% to 6% per year, but you may need to withdraw more or less depending on your specific circumstances.
You may need to adjust your rate of withdrawal based on future market performance. The sustainable rate of withdrawal is historical and will fluctuate. If your rate of withdrawal is greater than the growth of your assets, you may exhaust your principal.
It’s important to know how you’ll finance your needs and wants in retirement. Learn more…
Social Security benefits are another important aspect of your retirement plan. A variety of factors, such as your age, spouse’s earnings and other sources of income, can affect when you may need to begin receiving your benefits.
Contact us to gain the insight you need to help determine the most appropriate course for you.
Planning for Social Security
Most Americans consider Social Security benefits to be a significant source of reliable income in retirement. Deciding how and when to start drawing benefits will have a significant impact on your income, and thus your lifestyle in retirement, so it’s especially important to understand the options available to you.
The decision around when to begin taking Social Security is a key factor – but there are other important factors to consider:
- Your health and life expectancy
- Your spouse’s or ex-spouse’s benefit
- Whether or not you plan to work after age 62
- Your taxable income or other income sources in retirement
Learn more about Social Security decision factors.
Contact us to take the first step toward understanding when and how to apply for benefits.
Managing Risk
Regardless of your age or your financial situation, every investment decision entails some sort of risk. We will work with you to identify the factors and risks most relevant to your situation and plan for them, including:
| Longevity | Longer life expectancy means your assets have to last longer. You have to consider the possibility of living 20 or 30 years after you retire. |
| Inflation | For example, health insurance premiums and prescription costs are rapidly increasing. If you are retired, this would increase your cost of living, erode the value of your savings and reduce your purchasing power. |
| Spending and Withdrawals | Overspending, living beyond your means or withdrawing more than the recommended percentage from your retirement funds can adversely affect how long your assets last. |
| Market Risks | Market declines and the timing of these declines pose risks. How and where your assets are allocated across different asset classes plays a key role in managing this risk. |
| Unknown Risks | Major health events, disability, long-term care needs and other unexpected occurrences can complicate a retirement plan. |
Contact us for more information on how we’ll work together to help address these risks by applying a comprehensive process to plan your retirement.
Healthcare Considerations
It’s never too early to start thinking and planning for retirement, especially when it comes to major expenses like healthcare. For one thing, Americans are living longer. Yes, increased longevity is wonderful, but it also comes with a greater risk of experiencing changes in health, which could mean greater expenses as healthcare costs rise. The fact is, even with insurance and Medicare, out-of-pocket healthcare costs in retirement can be expensive, with the potential to derail even the best-laid plans. Understanding potential costs, evaluating your options and developing a comprehensive plan that accounts for those expenses can help you achieve a, comfortable retirement.
Costs to take into consideration:
- Medicare premiums, deductibles and copays
- Supplemental coverage costs
- Prescription copays
- Hearing, dental and vision costs
- Long-term care insurance
- Other out-of-pocket expenses
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.
Business Succession
If you’re a small business owner and haven’t already determined your exit strategy, don’t wait any longer. Among many other decisions, you’ll need to determine the most appropriate structure for divesting your business and tapping into the value it represents.
Consider how your business may be an important asset to fund your retirement plan now or in the future. Learn more …
The checklist below shows some of the key options you could consider when thinking through this part of your planning:
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Positioning yourself to reap the benefits of the work, time and effort you’ve put into your business requires time, thought and skill. Feel free to contact us to discuss in more depth how these options may fit into your specific situation.
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.
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.