Planning for Retirement
There are several factors to consider when deciding how to allocate your savings at retirement time. It may be advantageous to pay off debt. It may be advantageous to use guaranteed* instruments or avoid guarantees to keep costs low depending on your situation. As an independent firm, we have a mountain of financial products available and as fiduciaries, we will always present the strategies that will benefit you the most.
Among other factors, we will take into consideration your age, investment type (qualified/nonqualified), and specific preferences to help determine the most appropriate withdrawal strategy considering current tax brackets and your overall best interest. We believe it is important to properly diversify your investments and risk with highly rated companies and create an income plan that you are comfortable with.
*Guarantees are based on the claims paying ability of the issuing insurance company
Saving for Retirement
To achieve your retirement goals, we recommend setting aside savings as soon as you can. Time is one of the greatest resources available when saving for long-term financial goals. The earlier and more often you save, the more likely you are to achieve your retirement goals. We have a variety of retirement account types available that offer specific tax benefits depending on your personal situation. While setting aside savings is important, it is also crucial to ensure you are using the correct type of savings account.
Also, we always recommend contributing to your employer plan if they offer a match on contributions. Funding the minimum required to max out the match is a great way to increase your retirement savings. It is important to not leave money on the table and receive as much of a match as possible. While we cannot directly manage your employer retirement plan, we do have a service available that can help manage the investments within your account.
Retirement Considerations
How you position your assets to provide retirement income is a very important decision, especially when you consider the following:
- We are living longer. This makes it challenging to figure out how much retirement income will be enough. According to the U.S. Census Bureau, people over age 85 are the most rapidly growing age group (Source: https://www.courier-journal.com/story/life/wellness/health/2022/05/26/fastest-growing-age-group-people-over-85-live-long-well/7389772001/).
- Inflation may slow down, but it doesn’t stop. In 2011, the annual average CPI was 224.939; in 2023, it was 304.702. This represents an inflation rate of 35.5% over 12 years (Source: https://www.investopedia.com/inflation-rate-by-year-7253832).
- The future of Social Security, and its guarantee of lifetime income, is uncertain.
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Advisory services are offered through Summit Financial Consulting LLC, DBA Summit Financial Working With People You Trust, an SEC Investment Advisor. Registration with the SEC or being registered as a registered investment adviser does not imply a certain level of skill or training. Summit Financial Consulting LLC and its representatives do not render tax, legal, or accounting advice. Insurance products and services are offered through Summit Health Services, LLC and Summit Insurance Services, LLC. Tax products and services are offered through Summit Tax Services LLC. Summit Financial Consulting LLC, Summit Health Services LLC, Summit Tax Services LLC, and Summit Insurance Services, LLC are affiliated entities.
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