Key Considerations for Pre-Retirees

1. Assessing Retirement Readiness

Understanding one’s financial standing is essential before transitioning into retirement. We assist pre-retirees in evaluating their assets, liabilities, income sources, and projected expenses to determine their level of readiness. This involves:

• Net Worth Analysis: Assessing current savings, investments, and debts.
• Retirement Income Projections: Estimating income streams from Social Security, pensions, and other sources.
• Lifestyle Planning: Aligning financial resources with post-retirement goals and aspirations.

2. Maximizing Retirement Savings

Pre-retirees need to optimize their retirement savings in the final years of their careers. Our team provides guidance on:

• 401(k) and IRA Contributions: Maximizing contributions, including catch-up provisions for individuals over 50.
• Employer-Sponsored Retirement Plans: Evaluating options such as Roth vs. traditional accounts.
• Investment Portfolio Optimization: Adjusting asset allocations to balance growth potential and risk tolerance.

3. Creating a Sustainable Retirement Income Plan

Generating a reliable income stream in retirement requires careful planning. We work with pre-retirees to develop a sustainable income strategy that considers:

• Withdrawal Strategies: Implementing tax-efficient withdrawal sequences to preserve assets.
• Annuities and Guaranteed Income Products: Exploring options for guaranteed lifetime income.
• Dividends and Interest Income: Leveraging passive income sources to supplement retirement funds.

4. Social Security Optimization

Maximizing Social Security benefits is an integral part of retirement planning. Our advisors help pre-retirees understand:

• Optimal Claiming Age: Evaluating the financial impact of claiming at different ages.
• Spousal and Survivor Benefits: Coordinating strategies for married couples to enhance benefits.
• Tax Considerations: Managing taxation on Social Security income to retain more funds.

5. Healthcare and Long-Term Care Planning

Healthcare costs can be a significant financial burden in retirement. Pre-retirees must account for:

• Medicare Planning: Understanding enrollment options, supplemental plans, and coverage gaps.
• Long-Term Care Insurance: Evaluating policies that protect against high care costs.
• Health Savings Accounts (HSAs): Utilizing tax-advantaged accounts for medical expenses.

6. Tax-Efficient Retirement Strategies

Effective tax planning can help pre-retirees preserve more of their wealth. Our strategies include:

• Roth Conversions: Managing tax liabilities by converting traditional accounts to Roth IRAs.
• Tax-Loss Harvesting: Minimizing capital gains taxes through strategic investment decisions.
• Charitable Giving Strategies: Leveraging tax benefits through donor-advised funds and qualified charitable distributions.

7. Estate and Legacy Planning

Ensuring that wealth is transferred efficiently and according to one’s wishes requires comprehensive estate planning. Our services include:

• Will and Trust Structuring: Protecting assets and minimizing estate taxes.
• Beneficiary Designations: Reviewing and updating designations for financial accounts and insurance policies.
• Power of Attorney and Healthcare Directives: Establishing legal frameworks for financial and medical decision-making.