Saving for Retirement
An Early Start, A Brighter Future
Retirement might seem like a distant concept, but it’s never too early to start planning. In fact, the sooner you begin, the greater the potential benefits from compounding—the financial world’s “eighth wonder”.
By setting aside funds now, you can significantly amplify your savings by the time you retire, and possibly reduce your effective tax rate each year on the journey to retirement.
Understanding the myriad of retirement account types can be daunting, but it doesn’t have to be. Your workplace may determine your available options, but every account shares the same fundamental purpose: to bolster your retirement and long-term financial goals. With Modern Wealth, we simplify the process, helping you navigate through the choices to secure a comfortable and prosperous retirement.
Start your retirement planning today with Modern Wealth, because a better tomorrow begins with the steps you take today.
Approaching Retirement
There’s No Magic Number, But There is a Plan
When saving for retirement, is there a magic number to aim for? The answer is, unfortunately, no. However, crafting a retirement spending strategy can guide you towards establishing a monthly savings goal that aligns with your individual circumstances.
Market conditions are inherently cyclical and variable. For instance, stock market cycles often precede economic cycles by 6 to 12 months. Hence, investors who consistently contribute to their retirement savings can potentially leverage these market fluctuations through a strategy called dollar-cost averaging. This approach entails purchasing fewer shares when the market is high and more when the market is down.
For those aged 50 or older, there’s a unique opportunity to bolster your savings as retirement nears. You can make ‘catch-up’ contributions, accelerating your savings pace as you approach your retirement milestone.
At Modern Wealth, we can help you navigate these complexities, enabling you to build a robust and resilient retirement plan, regardless of where you are on your financial journey.
In Retirement
Healthcare, Retirement Withdrawals, and Social Security: A Holistic Approach
Healthcare expenses are likely to command a substantial portion of your retirement budget. Alongside everyday healthcare costs, it’s crucial to consider whether a long-term care insurance policy could help safeguard your assets, estate, and legacy. With research indicating that 70% of individuals over the age of 65 will require some form of long-term care, it’s a consideration that can’t be overlooked.
Understanding how to appropriately withdraw from your retirement accounts is pivotal for a seamless transition into retirement. Certain withdrawals are mandatory, but accessing your savings prematurely can have substantial tax consequences. When the time comes to tap into your savings, we’ll guide you through the process, exploring the most tax-efficient withdrawal options.
Boosting your retirement savings with a well-structured Social Security income strategy is essential. Administered by the U.S. federal government, Social Security provides benefits to retirees. Making an informed decision on when to start receiving these benefits is critical. Waiting longer can increase your monthly income, while choosing to take it early reduces the monthly payment. With our Social Security Benefit Optimizer, we’ll help you navigate intricate factors like longevity and break-even points.
At Modern Wealth, we integrate these elements into a comprehensive retirement strategy tailored to your unique circumstances.
