December 30, 2024 Weekly Update

We do love it when someone refers a family member or friend to us.  Sometimes the question is, “How can we introduce them to you?”   Well, there are multiple ways but a very easy way is to simply forward them a link to this webpage. Here are this week’s items:

What Issues in Retirement Should I Consider at The Start of the Year

Radon Stancil and Murs Tariq discuss how to approach the start of 2025 with clarity and purpose. They introduce a detailed checklist to help you organize and plan various aspects of your life, including cash flow management, estate planning updates, tax considerations, and more. This isn’t just about setting New Year financial goals or resolutions; it’s about…  

What Issues in Retirement Should I Consider at The Start of the Year

As we step into 2025, it’s the perfect time to assess where you stand financially, personally, and in terms of your long-term goals. The beginning of a new year offers a unique opportunity to reflect on the past, set goals, and establish a solid plan for the future. In this blog, we’ll explore key areas to evaluate and optimize for a successful year ahead.…..

What Issues in Retirement Should I Consider at the Start of the Year?

As we step into 2025, it’s the perfect time to assess where you stand financially, personally, and in terms of your long-term goals. The beginning of a new year offers a unique opportunity to reflect on the past, set goals, and establish a solid plan for the future. In this blog, we’ll explore key areas to evaluate and optimize for a successful year ahead, from cash flow management to estate planning updates. Let’s dive into your new year’s checklist for achieving financial peace of mind.

Reflecting on the Past Year

The first step in planning for the year ahead is reflecting on what went well in 2024. What were your biggest accomplishments, both personally and financially? Write these achievements down, as they serve as motivation and a benchmark for future goals. Documenting successes can also provide clarity and perspective when setting new objectives.

For retirees, this could mean reviewing how you managed your retirement income and whether your expenses stayed on track. If you’re still working, it’s a chance to celebrate milestones at work or progress toward retirement planning strategies. Journaling your reflections can help you better understand what’s important and what needs improvement.

CLICK HERE to Watch this on YouTube

Setting Goals for 2025

As you move into the new year, establish clear, attainable goals. These might include:

  • Planning a family vacation
  • Completing a home improvement project
  • Learning a new skill or hobby
  • Advancing retirement planning strategies
  • Preparing for significant life events, such as a child’s graduation or a milestone anniversary

Writing down these goals ensures they don’t get overlooked. It’s also essential to align your personal goals with your financial planning to avoid surprises later in the year.

Cash Flow Management

One of the most critical aspects of financial health is cash flow management. The new year is an excellent time to:

  • Review income and expenses: Has your income increased due to a raise or new job? Have your expenses shifted due to lifestyle changes?
  • Evaluate subscriptions and memberships: Cancel services you no longer use to free up cash for other goals.
  • Adjust savings contributions: If your income has increased, consider boosting your retirement savings or emergency fund.
  • Plan for large expenses: Whether it’s a kitchen remodel or a vacation, coordinating these expenses with your financial advisor can help minimize tax impacts and maximize efficiency.

Effective cash flow management allows you to allocate resources strategically and achieve financial goals without unnecessary stress.

Retirement Planning Strategies

If you’re approaching retirement or already retired, the start of the year is a great time to revisit your retirement checklist. Key considerations include:

  • Reassessing your risk tolerance: With market performance fluctuations, your risk exposure may need adjustment. Consider rebalancing your portfolio to align with your current goals.
  • Evaluating Roth IRA conversion benefits: If you experienced a drop in income or have additional deductions, a Roth conversion might make sense this year.
  • Reviewing contribution limits: The IRS often adjusts limits for IRAs, 401(k)s, and Ensure you’re taking full advantage of tax-advantaged accounts.
  • Setting retirement goals: Are you planning to retire this year? Ask yourself, “Is it time to retire?” and evaluate your readiness with the help of a financial advisor.

Tax Planning

Year-end tax planning tips are crucial for minimizing tax liabilities and maximizing benefits. Consider the following:

  • Gather necessary documents: Start collecting W-2s, 1099s, and charitable donation receipts to simplify the filing process.
  • Understand your tax bracket: Know where you fall in the 2025 tax brackets to plan more effectively.
  • Plan for Roth conversions: Analyze whether converting pre-tax retirement funds to a Roth IRA aligns with your tax strategy.
  • Review withholdings: Ensure your withholdings are accurate to avoid owing a significant amount or receiving a large refund.
  • Evaluate capital gains: If you have a taxable brokerage account, assess your realized and unrealized gains to explore tax-loss harvesting opportunities.

By addressing these tax issues early, you can avoid surprises and make smarter financial decisions throughout the year.

Insurance Reviews

Insurance is another area to revisit at the start of the year. This includes:

  • Medicare planning: If you’re turning 65 in 2025, consult a Medicare specialist well in advance to ensure you understand your options.
  • Long-term care insurance review: Explore modern policies that provide better coverage options than traditional plans.
  • Property and casualty insurance: Ensure your home insurance reflects current property values, especially if your home value has risen significantly.
  • Health insurance for early retirees: If you plan to retire before 65, evaluate your options for bridging the gap until Medicare eligibility.

Proper insurance planning protects you from unexpected expenses and ensures you’re adequately covered as your needs evolve.

Estate Planning Updates

Estate planning is often overlooked, but it’s a vital component of your financial health. The start of the year is an ideal time to:

  • Review wills, trusts, and power of attorney documents: Ensure they reflect your current wishes and family dynamics.
  • Check beneficiary designations: Confirm that the beneficiaries on your accounts align with your estate plan.
  • Fund your trust: If you established a trust but haven’t transferred assets into it, complete this process to avoid probate complications.
  • Stay informed on legal changes: Be aware of any new laws or regulations that could affect your estate planning strategies.

Keeping your estate plan up-to-date ensures your assets are distributed according to your wishes and minimizes stress for your loved ones.

Assessing Assets and Debts

The start of the year is a natural time to evaluate your financial standing:

  • Replenish cash reserves: If you dipped into savings for year-end expenses, plan a strategy to rebuild your emergency fund.
  • Review investment strategies: Analyze whether your current allocations align with your financial goals and risk tolerance.
  • Consider debt management: If you’re nearing the end of a mortgage or other loans, decide whether to pay them off early or maintain them strategically.
  • Check your credit score: Regularly monitoring your credit score can alert you to potential fraud or identity theft.

Understanding your assets and liabilities provides a clear picture of your financial health and helps you make informed decisions.

Planning for Life Events

Major life events often come with financial implications. Whether it’s a child’s graduation, a wedding, or a new home purchase, planning ahead can make these milestones more enjoyable and less stressful. Coordinate with your financial advisor to ensure your plans align with your broader financial goals.

Conclusion

The beginning of a new year is a time of opportunity. By reflecting on the past, setting attainable goals, and addressing key financial areas like cash flow, retirement planning, tax strategies, insurance, and estate planning, you can set yourself up for success in 2025 and beyond.

If you want to understand all this a little better, we offer a complimentary phone call that you can schedule with us on our website. If we can’t answer all your questions in just 15 minutes, we’ll guide you to the next steps to find the answers you need.

Schedule your complimentary call with us and learn more about “What Issues Should I Consider at the Start of the Year?”

December 9, 2024 Weekly Update

We do love it when someone refers a family member or friend to us.  Sometimes the question is, “How can we introduce them to you?”   Well, there are multiple ways but a very easy way is to simply forward them a link to this webpage.

Here are this week’s items:

 

How to Retire at 62 in 2026 With Peace of Mind

Radon and Murs discuss:

How to build the foundational steps for retiring at age 62 and achieving peace of mind in retirement planning. They dive into the critical questions that need to be answered, the data required to assess retirement readiness, and the steps to create a retirement roadmap. With this episode as the first of a two-part series…

 

How to Retire at 62 in 2026 With Peace of Mind

The Peace of Mind Roadmap: A Two-Step Approach

We often begin retirement planning by addressing foundational questions. This includes understanding your goals, taking an inventory of your financials, and clarifying expenses. Our Peace of Mind Roadmap process is designed to help you retire with confidence. It consists of two parts:….

How to Retire at 62 in 2026 With Peace of Mind

Retirement is an exciting milestone, yet it comes with important questions: “Have I saved enough?” and “Can I truly retire comfortably?” If you’re planning to retire at age 62 in 2026, the steps you take now will shape your financial freedom and peace of mind. This guide, inspired by our Secure Your Retirement podcast, walks you through how to prepare, what questions to ask, and how to build your personalized Peace of Mind Roadmap.

The Peace of Mind Roadmap: A Two-Step Approach

We often begin retirement planning by addressing foundational questions. This includes understanding your goals, taking an inventory of your financials, and clarifying expenses. Our Peace of Mind Roadmap process is designed to help you retire with confidence. It consists of two parts:

  1. Gathering Data: Collecting and organizing financial information, understanding your goals, and clarifying your spending needs.
  2. Building Your Plan: Analyzing your data, exploring scenarios, and developing a financial plan tailored to your needs.

Let’s break these steps down so you can start preparing your Peace of Mind Roadmap.

Step 1: Gathering the Right Data for Retirement Success

The cornerstone of any effective retirement plan is accurate and comprehensive data. Here’s what you need to consider when gathering your financial information:

Assets: Building Your Financial Snapshot

We ask clients to create a financial inventory, which helps determine if retiring at 62 is feasible. Here are the key areas to assess:

  1. Cash on Hand:
    1. How much do you have in checking, savings, money market accounts, or CDs?
    2. Understand the purpose of your cash: Is it for emergencies, investments, or daily expenses?
  2. Life Insurance:
    1. What types of policies do you have?
    2. Is the policy term or permanent? If permanent, is it intended for income, cash value growth, or a death benefit?
  3. Annuities and Non-Qualified Investments:
    1. Are your annuities growth-oriented or income-generating?
    2. Identify other investments like brokerage accounts or stock portfolios.
  4. Retirement Accounts:
    1. Document your IRAs, 401(k)s, and Roth accounts.
    2. Know your employer match for current contributions.
  5. Real Estate:
    1. Evaluate the value and liabilities of your primary residence and investment properties.
  6. Pensions and Deferred Compensation Plans:
    1. Understand the income stream from pensions, including cash balance plans or deferred compensation plans.

Liabilities: Understanding Debt and Cash Flow

Taking stock of debts is essential when planning to retire comfortably:

  • Mortgages: Determine your payoff timeline and monthly costs.
  • Car Loans: Factor in when these will be paid off.
  • Other Debts: Include liabilities like credit cards or personal loans.

Income Sources: What’s Coming In?

Your retirement plan is only as strong as its income streams. These include:

  • Social Security: Get an estimate of your benefits at 62, full retirement age (67), and age 70.
  • Part-Time Work or Consulting: Will you continue working to supplement your retirement income?
  • Rental Income: Calculate how much income investment properties generate.

Expenses: Breaking Down Spending

A well-rounded retirement plan accounts for three categories of spending:

  1. Essential Needs:
    1. These include fixed costs like mortgage payments, utilities, and groceries.
  2. Wants:
    1. Travel, hobbies, dining out, and memberships fall under this category.
  3. Legacy Giving:
    1. Charitable donations and gifts to family are also part of your financial picture.

Tip: Focus on net spending—what you need monthly after taxes. This ensures a realistic view of your financial needs.

Estate Planning Essentials

A solid plan for retirement includes preparation for the unexpected. Ensure you have up to date:

  • Will
  • Power of Attorney
  • Healthcare directives
  • HIPAA release forms

These documents protect you and your loved ones in the event of unforeseen circumstances.

Step 2: Building and Analyzing Your Peace of Mind Roadmap

Once you’ve gathered the data, it’s time to analyze it and build your Peace of Mind Roadmap. This is where we apply financial modeling to answer the critical question: “Does my plan work?”

Scenario Analysis

In your Peace of Mind Roadmap, we create various scenarios to test the strength of your plan. For example:

  • What if inflation rises faster than expected?
  • How will healthcare costs impact your savings?
  • Can your assets sustain your lifestyle if the market underperforms?

By running these scenarios, we identify risks and opportunities in your plan.

The Importance of Regular Reviews

Even the best retirement plans require regular updates. We recommend reviewing your plan annually. By monitoring your financial picture, you can adapt to changes in the economy, taxes, or your personal goals.

Addressing Common Retirement Concerns

As you plan your retirement at 62, here are answers to some common questions:

Is Social Security Enough to Retire at 62?

Social Security alone is rarely sufficient to cover retirement expenses. By understanding your benefits and supplementing them with other income sources, you can create a balanced plan.

What Happens If I Outlive My Savings?

Longevity risk is a top concern for retirees. Solutions like annuities, disciplined withdrawals, and proper investment strategies help your assets last throughout retirement.

How Do I Plan for Market Downturns?

Diversifying your portfolio and maintaining a cash reserve are key strategies to protect your retirement savings during volatile markets.

The Role of Professional Guidance

Retiring comfortably at 62 is achievable with the right planning and guidance. A financial advisor can help you:

  • Align your investments with your goals.
  • Minimize taxes through strategies like Roth conversions or tax-efficient withdrawals.
  • Create a sustainable withdrawal plan that protects your principal.

Final Thoughts on Retiring at 62 in 2026

Retiring at age 62 is a dream for many, but it requires intentional planning and preparation. By gathering accurate data, understanding your expenses, and building a personalized plan, you can achieve peace of mind and enjoy the retirement you’ve worked hard for.

Schedule your complimentary call with us to ask any questions you may have from this blog. If your questions don’t all fit in a 15-minute call, we will guide you to the next steps to get some answers.

Plan wisely, stay informed, and secure your future. Remember, the key to retiring at 62 in 2026 with peace of mind is creating a comprehensive plan and sticking to it.

November 25, 2024 Weekly Update

We do love it when someone refers a family member or friend to us.  Sometimes the question is, “How can we introduce them to you?”   Well, there are multiple ways but a very easy way is to simply forward them a link to this webpage. Here are this week’s items:

Portfolio Update:  Murs and I have recorded our portfolio update for November 25, 2024

The Four Phases Of Retirement

Radon and Murs discuss the fascinating journey of transitioning into retirement with special guest Dr. Ridley Moynes, author of The Four Phases of Retirement. This episode dives deep into the emotional, mental, and financial aspects of retirement, addressing the critical question: “Is retirement only about money, or is there more to finding purpose in retirement?”…  

The Four Phases Of Retirement

We talked to Dr. Riley Moynes, author of The Four Phases of Retirement, and he takes a unique approach to understanding this pivotal stage of life. While money remains a critical component of retirement planning, Moynes emphasizes the need to address the deeper, often-overlooked challenges…..

The Four Phases of Retirement

Retirement. It’s a word that stirs up images of freedom, relaxation, and maybe even the long-dreamed-of beach house. But while most of us imagine retirement as the ultimate escape from work, the reality can be far more complex. Transitioning from decades of structured routines and professional identity to a life of open-ended days isn’t as straightforward as it seems. In fact, retirement is more than just a financial milestone—it’s an emotional, psychological, and social transformation.

We talked to Dr. Riley Moynes, author of The Four Phases of Retirement, and he takes a unique approach to understanding this pivotal stage of life. While money remains a critical component of retirement planning, Moynes emphasizes the need to address the deeper, often-overlooked challenges. What will your purpose be? How will you handle the loss of structure and identity that work once provided? And perhaps most importantly, how can you squeeze all the juice out of retirement? Let’s delve into these four phases of retirement to uncover not just how to retire comfortably, but how to thrive in life after retirement.

Phase One: The Vacation Phase

Imagine waking up without an alarm, sipping coffee on your patio, and spending your days doing whatever you please. This is the essence of the Vacation Phase, the period many retirees envision when they think about retirement. It’s a time of indulgence, relaxation, and often ticking off items on a long-held bucket list.

In this phase, retirees often:

  • Travel extensively
  • Pursue hobbies like golf, gardening, or boating
  • Revel in the freedom from rigid schedules

For most, this phase lasts between one and two years. While it’s a well-deserved respite after decades of hard work, it doesn’t last forever. As the novelty wears off, many retirees find themselves asking, Is this all there is to retirement? This marks the transition to the next phase.

Phase Two: Feeling Lost

The second phase, aptly called Feeling Lost, is when the initial excitement of retirement fades. This stage can come as a shock, particularly for those who assumed retirement would be an enduring carefree coast. According to Dr. Moynes, retirement is ranked among life’s top 10 traumas, often characterized by:

  • Loss of Structure: Without the daily grind, retirees may miss the routine that once anchored their lives.
  • Loss of Identity: Work often forms a large part of who we are, and stepping away can feel like losing a part of oneself.
  • Loss of Relationships: Colleagues who became friends may drift away once the common bond of work is gone.
  • Loss of Purpose: The sense of contributing to something meaningful can be difficult to replace.
  • Loss of Power: Retirees who once held significant roles may feel diminished when those responsibilities vanish.

Adding to these challenges are the “three D’s” that often coincide with this stage of life: decline (physical and mental), depression, and divorce. For some, this phase can feel overwhelming and endless, but it’s also a critical turning point. Recognizing these challenges and how they could affect you is an important step on your path to building a fulfilling and comprehensive retirement.

Phase Three: Trial and Error

If Phase Two is the lowest point, Trial and Error is the climb back up. This phase is about exploration—testing new ideas, hobbies, and ways to regain a sense of purpose. It’s not an easy process; retirees may try several activities that fail to stick before finding what truly resonates.

Key strategies for navigating this phase include:

  1. Rediscovering Purpose: Ask yourself, What makes me want to get up in the morning?
  2. Leveraging Past Successes: Reflect on personal victories and identify patterns that could guide your next steps.
  3. Staying Persistent: Trial and error is exactly that—trying and failing until you succeed.

For example, volunteering, mentoring, or taking up part-time work can help retirees reconnect with a sense of service and contribution. The key is not to give up; those who persist are far more likely to transition successfully to the final phase.

Phase Four: Reconnection and Service

The final phase, Reconnection and Service, is the reward for perseverance. Dr. Moynes describes this as the phase where retirees truly thrive, finding immense satisfaction in giving back and living with purpose.

Common ways retirees find fulfillment in this phase include:

The defining characteristic of this phase is a commitment to serving others. Whether it’s mentoring, helping a local charity, or being a present and engaged family member, this outward focus brings deep personal satisfaction.

Preparing for the Journey: Practical Tips

Retirement isn’t just about financial planning steps; it’s about planning for a fulfilling life after retirement. Here are some actionable retirement tips to ease the transition:

  1. Start Early: Don’t wait until retirement to think about these phases. Begin considering your unique abilities, passions, and potential challenges well in advance.
  2. Communicate with Your Partner: Retirement can test relationships, especially if one or both partners struggle with the changes. Open communication is essential for navigating this together.
  3. Stay Active: Physical and mental decline is natural but can be mitigated by staying active, both in body and mind.
  4. Seek Support: Whether through books like The Four Phases of Retirement or workshops, don’t hesitate to seek guidance in navigating these stages.

Squeezing the Juice Out of Retirement

Retirement is a journey, not a destination. It’s a series of phases containing their own challenges and rewards. By understanding these four phases, retirees can better prepare for the emotional and psychological hurdles that accompany financial planning. With persistence and a willingness to adapt, it’s possible to transition from feeling lost to living a purposeful and joyful life.

You may have some questions about this topic. Schedule your 15 minute complimentary call with us and learn more about The Four Phases of Retirement here.

March 20, 2023 Weekly Update

We do love it when someone refers a family member or friend to us.  Sometimes the question is, “How can we introduce them to you?”   Well, there are multiple ways but a very easy way is to simply forward them a link to this webpage.

Here are this week’s items:

Portfolio Update:  Murs and I have recorded our portfolio update for March 20, 2023

This Week’s Podcast – I’m 66 – Can I Retire?

In this episode of the Secure Your Retirement podcast, Radon and Murs discuss the question of whether you can retire at age 66, using a specific example from an article in Market Watch. They provide insights and advice on retirement planning and financial management.

 

This Week’s Blog – I’m 66 – Can I Retire?

Are you 66 years old and wondering, “Can I retire?” You’re Not alone. We have a lot of clients come to us for retirement planning that ask this very question. People want to get out of the ratrace and enjoy life, and we actually read an article on Market Watch with a person asking this exact question.

I’m 66 – Can I Retire?

Are you 66 years old and wondering, “Can I retire?” You’re not alone. We have a lot of clients come to us for retirement planning that ask this very question. People want to get out of the rat race and enjoy life, and we actually read an article on Market Watch with a person asking this exact question.

Unfortunately, there is no standard answer to give you because the way you secure your retirement may be different than how someone else has planned for their retirement.

We do this every day. We know each element it takes to retire comfortably. Unless you’re working as a financial advisor, it’s not your job to know every little detail that shows you’re ready for retirement.

In our most recent podcast, we walk through the question of can I retire?

Let’s find out what we talked about.

Can I Retire?

What prompted this article is that a man who is 66 wrote into Market Watch, said he has $2 million in retirement and just wanted to retire and golf. We have folks with far less in retirement that have been able to retire and some with far more who have not.

Someone may read this and say:

  • You have $2 million. Of course, you can retire.
  • You have just $2 million? Of course, you can’t retire.

Let’s look at this man’s scenario. He is 66 years old and four months. He has $2 million in retirement, plans to have $3,300 in Social Security very shortly and works as a consultant three days a week and wants to leave his position.

He also has:

  • $1.6 million in retirement accounts
  • $600,000 in his wife’s retirement accounts
  • A daughter who still lives at home
  • A modest home that he owns
  • $9,000 – $10,000 in expenses
  • $6,000 in taxes and insurance
  • Home is paid off

As financial planners, we’re going to say to this individual, “Job well done.” This individual has done a great job paying off his home and saving over $2 million for his retirement.

Ultimately, dollars in and dollars out will dictate if this person is able to retire at 66 or not.

First, we’ll have a conversation with this individual to better understand their:

  • Travel goals
  • Legacy goals
  • Things they’re worried about
  • Health condition

We’ll want to create a retirement-focused financial plan that looks at multiple layers of a person’s scenario to understand if retiring now is possible with what they’ve saved and what they want in their retirement.

If you’ve read our blogs or listened to our podcast, you know that we mention the GPS retirement system a lot.

This system considers:

  • Where you’re going
  • Where you are right this moment

A fact-finding discussion that we have with our clients allows us to know a person’s starting point and where they want to be in the future.

What we’ll do is run a person’s financial plan at a rate of 4% to 5% because we know that if this plan does good, a higher rate of return will just make life easier. We don’t recommend running a plan at a higher rate of return than this because you’ll have to make riskier investments that can cause you to lose a major portion of your retirement.

The other thing we want to look at is why this person’s expenses are $9,000 – $10,000. We often find out that a person is spending $3,000 a month for traveling, so we then create a fun fund for 10 years.

Often, a person will travel for the first 10 years and then it tends to slow down, saving money in the process.

Taxes are also something to consider. If you’re paying a lot in taxes, it can reduce your ability to retire now or stay in retirement over the long term. Tax planning may be necessary for this individual because they may have deferred taxes, which means the $2.2 million in the bank is far less.

Next, we’ll go into scenarios.

What-if Scenarios

If we’re confident that the person can retire, now or in the future, then we can start looking into what-if scenarios. For example, if the person asking if they can retire has medical issues, they may be concerned about long-term care, which is very expensive. We can then consider:

  • Long-term care insurance
  • What would happen to the person’s retirement if long-term care were necessary?

What-if scenarios can be very positive, or they can be negative. Perhaps you want to buy a boat, RV or a second home. This will be considered in a what-if scenario.

We know that the individual in question has a lot of money in retirement accounts and a home paid off. Next, we would run a full retirement plan that shows us:

  • How much money the person has in their accounts every month based on the rate of return and expenses
  • How long the person can be retired
  • What life will be like from a financial standpoint if they reach age 90 or 100

If the person has more than enough money left at 90 in their retirement, we can then consider a long-term care scenario. Using the average cost for long-term care, stay length and so on, we can then find out the cost for the level of care, which is often $400,000 – $600,000.

Then, we will look at the remaining retirement balance when the person in long-term care passes, and we’ll see if they can live until 90 or 100 on the remaining retirement accounts.

We may find that self-insurance is possible, but if we find that you start running low on assets early, long-term care insurance may be a better option.

As you can see, there are many moving parts in retirement that you need to consider. We may be a bit biased, but everyone should sit down with a financial advisor to go through all these scenarios to better understand if you can retire and when.

We want to ensure that if you do retire, you can handle the what-ifs that come your way and have peace of mind heading into retirement.

If you have individualized questions that we haven’t covered just yet, feel free to contact us and we’ll be more than happy to answer them for you.

Click here to schedule a call with us.