The start of the new year is an important time to review, update or build your retirement plan—making sure that any prior plan is fully up-to-date and optimized. Now is the time to reassess and realign any existing strategies based on current life circumstances and future financial goals. The following is a streamlined financial and retirement planning guide that highlights the key considerations you can take to ensure you start 2024 retirement planning off right.
Before anything else, start by assessing where you’re currently at, and where that path is taking you—with your financial advisor. Annual reviews are a great way to gauge whether you are on track to be able to afford the lifestyle you are setting up post-retirement. This review should look at age, savings and household income as compared to how much replacement income and social security is likely to cover you once you are no longer gainfully employed.
These factors—in addition to assumptions related to return and inflation—will help determine your retirement readiness while revealing any potential revisions or adjustments required to stay, or get back, on your ideal financial track.
Whether it be financial or medical preparedness, a strong insurance plan can protect you and your financial legacy in the case of an unexpected turn. By utilizing tools such as disability income protection or life and long-term care insurance, individuals can stay proactive in preparation for any curveballs thrown their way.
Working with a financial advisor that can access a flexible insurance carrier can also open up a world of opportunity for a retiree. By supplementing existing income and/or wealth with annuities, retirement can be transformed into more a secure stage of life.
Just like diversifying across asset classes in order to effectively manage risk, different sources of retirement funding can also have a beneficial effect on how much you keep when it’s time to retire.
Tax deferred 401(k) plans are a good foundation, but this vehicle utilized alone can have tax implications during withdrawal. Diversifying income tax across a combination of taxable, tax-deferred, and tax-free (such as Roth) accounts may provide retirees with the flexibility and control needed for managing retirement income sources and minimizing the tax impact on distributions. It is important to discuss options available to you with your financial advisor—they can help optimize your plan.
With current tax rates set to increase after 2025, there may be a strategic opportunity to explore Roth conversions, facilitating the transition of tax-deferred assets into tax-free assets. This allows individuals to capitalize on the current lower tax rates and optimize their future financial plans.
The complexities of the modern retirement portfolio require a discerning eye that investors could find overwhelming. The consequences can be huge if the planning phase is not undertaken with calculated efficiency.
This is where legacy planners can help. These investment and retirement planning professionals can look at all aspects of your financial story and connect the dots to create a truly tailored strategy based on a multitude of personal factors. At NBC Securities, we focus on holistic legacy planning with a heavy emphasis on the retirement elements, including:
Here at NBC Securities, we are a boutique financial advisory that is here for you, offering financial and retirement planning services focused on supporting you in your personal path towards a secure retirement. Connect with us today to learn about how our independent private wealth management services can support you and your loved ones for the long-term.
