Updates to Rates of Return. Rates of return are tied to a dollar’s expected usage point. ROR assumptions are crucial to retirement financial planning because they anticipate how dollars will meet plan needs over time. Short, Medium, and Long-term money will each have different expected usage points. Naturally, these different pockets should have varying risk […]
The Secure Act 2.0 overhauls, pioneers, and expands upon many new rules for retirement savers. But what are key provisions that new retirees should be aware of? The full text of the omnibus bill text can be found here. What are the important retirement provisions? Section 107: Increases to RMD ages for some retirees Effective […]
Stock options can be among the most confusing aspects of the financial planning process. The subjectivity built into these programs will consider personal preferences, planning timing tactics, diversification, and tax efficiency. What kind of options do you have? The first step is identifying what type of option you have. It may be a good idea […]
Guaranteed income offers all kinds of benefits to a financial plan but also comes with tradeoffs, namely growth and cost. Finding the “sweet spot” for a guarantee in a financial plan is tricky and not always readily apparent. Furthermore, differences in opinion within a family unit can cause disagreement about the “perfect” design. When referring […]
The annual Retirement Confidence Survey consistently shows retirees’ expectations pre, and post-retirement may not always be realistic for specific areas of retirement planning. A realistic financial plan will consider all variables and any high-risk scenarios. Being real with expenses Expenses are one of the most disliked aspects of developing a financial plan. It’s almost impossible […]
Planning a sustainable withdrawal strategy is one of the most overlooked areas of financial planning. Having a clear and coordinated withdrawal strategy is crucial because it will ultimately determine how an individual will create sustainable income throughout retirement. Successfully navigating sequence risk Sequence risk is the risk in the timing of withdrawals from a market […]
#1 Not having a rational process Having a rational process for decision-making helps maintain focus, reduces uncertainty, and ensures that everyone remains on the same page. Having a process translates to efficiency and usually results in more money spent AND less frustration. Having a process should allow individuals to internalize planning subjectivity and view the […]
Choosing a retirement date is the final step before entering retirement. But for it to be a smooth transition, most individuals will need to coordinate benefits and potentially make last-minute adjustments to their financial planning retirement strategy. #12 Re-thinking the Retirement Budget Generally, retirees enjoy more free time once they retire. In many cases, that […]
As the COVID-19 pandemic swept the country, we first reported this event’s game-changing effect on retiree income, specifically for those who recently retired or were about to retire. Many individuals do not fully understand how the pandemic (and now the Ukraine invasion) has fundamentally changed retirement planning. Many who do, feel forced to take on […]
When changing jobs or retiring, it’s always prudent to consider all your options as far as employer-sponsored retirement accounts. In rare cases, it can make sense to do nothing, and leave the retirement account with the old employer. There can also be benefits to transferring the account to your new employer’s plan. And sometimes, it […]
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