Retirement Costs
Can I afford to retire at 65?
Yes—but it depends on factors such as your savings, expected retirement expenses, income sources (Social Security, pensions, investments), healthcare costs, taxes, and how long you can expect your retirement to last. A retirement income plan can help you see whether you’re on track.
Is $1 million enough to retire?
It can be, but it depends on your lifestyle, spending needs, taxes, investment strategy, retirement age, and life expectancy. For some people it’s more than enough, while others may need significantly more.
How much should I save for retirement?
There’s no one-size-fits-all number. The right amount depends on your desired lifestyle, retirement age, expected expenses, inflation, and other income sources. A personalized retirement projection can help you find your target.
What steps should I take to retire at 65?
Review your current savings, investments, and expected retirement income.
Estimate your retirement expenses, including healthcare.
Review your Social Security claiming strategy.
Develop a tax-efficient withdrawal plan.
Build a retirement income plan, and revisit it as needed leading up to retirement.
Will I run out of money in retirement?
It’s one of the most common retirement worries, and the good news is that it’s largely preventable with the right planning. Whether your money lasts depends on how much you’ve saved, how it’s invested, how much you withdraw each year, inflation, healthcare costs, and how long you live. A solid retirement income plan looks at all of these factors together, including how your savings would hold up in a market downturn or a longer-than-average retirement, so you can see clearly whether you’re on track and make adjustments before they’re needed rather than after.
How do I know if I am ready to retire?
You’re generally ready when you have a reliable plan showing that your income can support your lifestyle throughout retirement, while accounting for inflation, taxes, healthcare costs, and unexpected expenses.
Possible Solutions
Increase the Income from your retirement accounts by 25% (or more) AND lower the chance of running out of money… WITHOUT moving a single investment. Ask us how.
Have you applied for the program that pays for 2-years of long-term care costs… WITHOUT having to pay expensive annual premiums? Ask us how.
Social Security
When should I take Social Security?
The best time varies from person to person. Your health, life expectancy, marital status, employment, and income needs all play a role. Claiming too early or too late can significantly affect the benefits you receive over your lifetime.
What is the best age to claim Social Security?
There isn’t a single “best” age for everyone. Benefits can start as early as age 62, reach full amount at your full retirement age (based on your birth year), or grow larger if you delay claiming until age 70. The right choice depends on your overall retirement plan.
How much will I receive from Social Security?
Your benefit is based on your highest 35 years of earnings and the age you begin claiming. You can estimate your benefit through your Social Security statement, but understanding how that benefit fits into your broader retirement income plan is just as important.
Possible Solutions
Have you applied for the program that will protect a wife from losing ½ of her Social Security income at her spouse’s death? Ask us how.
Taxes
How can I reduce taxes in retirement?
Strategies may include diversifying the tax treatment of your retirement accounts, carefully planning the order and timing of withdrawals, considering Roth conversions, managing capital gains, and coordinating Social Security with your other income. The right approach depends on your personal financial situation.
How are 401(k) withdrawals taxed?
Withdrawals from a traditional 401(k) are generally taxed as ordinary income. If you withdraw before age 59½, you may also owe a 10% early withdrawal penalty in addition to income tax. Tax planning can help reduce the impact over time.
Are Roth IRA withdrawals tax-free?
Qualified withdrawals are generally free of federal income tax, as long as you meet IRS requirements—typically being age 59½ or older and having held the account for at least 5 years. Roth IRAs can be a valuable part of a tax-diversified retirement strategy.
Should I do a Roth conversion?
It depends. A Roth conversion may reduce your taxes in the future, but it can increase your taxes in the year you convert. Your current tax bracket, expected future income, and retirement goals should all be weighed before deciding.
How can I avoid paying taxes on retirement income?
Completely avoiding taxes is uncommon, but careful planning can help reduce them. The right strategy depends on your mix of retirement accounts, investment assets, income sources, and tax bracket. A personalized withdrawal strategy can make a meaningful difference.
What are Required Minimum Distributions (RMDs)?
RMDs are the minimum amounts the IRS requires you to withdraw each year from certain retirement accounts once you reach a certain age (currently 73). Missing a required distribution can result in significant penalties, which is why planning ahead matters.
Possible Solutions
Reduce the tax you pay on your IRA and retirement account withdrawals by up to 70%. Ask us how.
Reduce the tax you pay on your investment income (that’s income that comes from investments NOT in your retirement accounts) down to just 1%… instead of the 15%-25% (or more) you are paying now? Ask us how.
Every retirement is unique, which is why we complete a Full Checklist Review to make sure you get everything out of your retirement.
Share a few details about your retirement or income goals and we’ll help you explore strategies that reduce taxes and protect your lifestyle. No pressure — just helpful insights.