Whether we are in the accumulation stage of our retirement planning, or in our distribution stage, there are many risks we face to our savings. Some of these can pose a catastrophic risk to our financial well being in retirement.
- Market Downturns - We all know there is risk in investing in the market. In our early years, we may have time to recover from large swings in the market. However, as we get closer to retirement and into our retirement years, market downturns can have an enormously negative effect on the amount of income we can take. We have significant expertise in managing market risks on your savings.
- Taxes - Many Americans have put all of there retirement assets into vehicles such as a 401k. These Tax Qualified plans allow us to contribute "pre-tax" dollars into the plan and receive an up front tax incentive. The problem comes when we retire and every dollar coming out of the plan is taxed as income. Further, we have no idea what the tax rate will be when we retire. We can probably agree that it will not be lower than our current rates. Tools such as ROTH IRA's and other vehicles can reduce or eliminate the tax burden we face in retirement.
- Health Care/Long Term Care/Assisted Living - The single biggest risk to our retirement savings comes from health care costs. As we live longer and longer, more people are requiring some type of assistance in their later years. With proper advanced planning, we can mitigate some of the risks of spending all of our money on care.
To explore ways to protect and maximize your retirement funds, schedule a free consultation today.