facebook twitter instagram linkedin google youtube vimeo tumblr yelp rss email podcast phone blog search brokercheck brokercheck Play Pause

Retirement Planning

Retirement planning today has taken on many new dimensions that never had to be considered by earlier generations. Some of these new dimensions include: 

  • Longevity Risk - People are living longer. A person who turns 65 today should expect to live as many as 20-plus years in retirement as compared to a retiree in 1950 who lived, on average, an additional 15 years.  Longer life spans have created a number of new issues that need to be taken into consideration when planning for retirement.
  • Reduction In Income Sources - Earlier generations had three income sources (pension, personal investments, and social security) available to them in retirement. Many companies have gone away from offering pension plans and pushed the retirement responsibility onto the employee. This new paradigm makes it every more important to plan and prepare for a successful retirement.
  • Interest Rate/Inflation Risk - After experiencing a declining interest rate environment for over 30 years, we’ve entered a period of rising interest rates and higher inflation. Today’s retirees have an opportunity to take advantage of higher interest rates while preparing to maintain spending power throughout retirement.
  • Healthcare Cost - Healthcare costs will continue to rise. We need to prepare for double digit growth in future healthcare expenses. 
  • Taxes - Our country's obligations are underfunded and consequently, we expect that taxes will increase. 

How Thrive Can Help

The first step in tackling retirement planning and its associated risk is to prepare. We utilize forecasting tools to help our clients model their retirement. When it comes to adjustments our focus is always on what you can control. Some of these adjustments may include:

  • Save more
  • Spend less
  • Work longer
  • Leave less to loved ones or charity 
  • Take on more or less investment risk

These planning sessions are interactive and allow our clients to see in real-time how these adjustments affect their long-term success. With a plan established, we pride ourselves in working with our clients to advise or assist with implementing what we have discussed. You will never be handed a plan and told "have at it". In fact, we often take on the role of being a coach to make sure our clients implement their plan. A financial plan is not static; it cannot be left on a shelf. We run our client's plans on an annual basis to ensure they remain on path.

In some cases, our clients are surprised to learn they are on path and can do more with their resources. This allows them to dream a little and live a more fruitful financial life. Retirement planning is all about marrying the things that matter to you and your resources. Creating an equilibrium between the two is paramount. If an imbalance exists, adjustments should be made.  

Lastly, whether we like it or not, we must accept that we have a partner in life in the form of the United States Government. Taxes will likely rise and tax management will play a crucial role in a successful retirement. We work with our clients to create a diverse set of investment buckets (after-tax, tax-deferred, and tax-free). This allows us to manage your taxes in retirement by deciding which bucket to draw from.

If you are ready to build a comprehensive retirement plan, please contact us today!

I'm Ready To Thrive

Not all services will be appropriate or necessary for all clients, and the potential value and benefit of the adviser’s services will vary based upon a variety of factors, such as the client’s investment and financial circumstances and overall objectives. The effectiveness and potential success of adviser’s services can depend on a variety of factors, including but not limited to the manner and timing of implementation, coordination with the client and the client’s other engaged professionals, and market conditions. Not all services come with ongoing monitoring or updating of client financial plans. Clients should refer to their services agreement to determine the scope of ongoing monitoring provided under their engagement. Thrive is neither a law firm nor an accounting firm and does not provide legal or tax advice. Website visitors and clients should consult an attorney or tax professional regarding their specific legal or tax situation. Past performance does not guarantee future results. All investing comes with risk, including risk of loss.