Estimated duration: 6-7 minutes
How much money do you think you will need to retire?
What is the “magic number” you are trying to achieve?
Trying to hit your savings goal is great. However, reaching a random number does not guarantee a successful retirement.
This is the number one mistake people make. They think that once they hit the magic number, they can finally stop doing it. But when I ask what the math behind that number is, they don’t have an answer.
Saving and investing money is not enough if you want to retire well.
You need a sound plan behind that money. And once you do this, you’ll be amazed at how far your money will go.
We don’t have the space to cover it all, but here are five pillars of financial planning that will help you get the most out of all the money you’ve saved for retirement.
1 Reduce retirement taxes
Most people assume that they will pay less in taxes when they retire because they are no longer earning a salary. However, just because you stop working doesn’t mean you lose your taxable income.
Withdrawals from IRAs and 401Ks, Social Security benefits, and other investment income (real estate, dividends, etc.) are all taxable. Add all of this up and you could end up paying even more taxes when you retire.
To make matters worse, today’s tax rates are lower than they were more than 40 years ago. With the national debt reaching a record $31 trillion, there’s no doubt the government could raise income taxes soon. And higher taxes can mean even less money left in your pocket.
The good news is that you have more control over your retirement taxes than you know. And with a simple tax planning strategy, you can significantly reduce these taxes.
2 Salary change
When you retire, you’ll probably end up in one of two camps…
The first is that I live off my retirement savings. But this means that your savings will decrease for every dollar you spend. So you live in constant fear of running out of money. And it’s not fun.
If you are in the second camp, your money is working for you. You have different sources of income, monthly or quarterly like clockwork.
These different sources of income allow me to do all the things I dreamed of in retirement, such as spending money for my children and grandchildren, taking trips on my to-do list, or buying my dream vacation home. can be done.
The key is to create a plan that provides multiple sources of income for retirement. So if one source is exhausted, you have other options.
3 Maximizing Social Security Benefits
Many people think of applying for Social Security as a choice between applying for benefits early or deferring them until age 70.
But it’s much more complicated than that.
Your claim strategy can have a domino effect on taxes from Social Security benefits, IRA/401K withdrawals, and other investment income. That can cost you thousands of dollars each year in other gains. Plus, your Medicare premiums may double.
Therefore, determining how and when to claim Social Security requires a coordinated effort. All of the above should be considered, not just the one that will give you the maximum benefit.
The best way to ensure you get the maximum “net” income from your benefits is to get a customized Social Security analysis from your fiduciary advisor.
4 Minimize investment risk
What we’ve found in 99% of first-time client meetings is that people are taking far more investment risk than they realize or need at this stage of the game. And this is where you can really get into trouble.
People rarely get hurt when the stock market is growing. They are hurt when there is a major stock market correction or bear market, which is what we have experienced in the market since the pandemic began.
Large fluctuations in the stock market can distort investments. Also, if you don’t check your portfolio, you may be unknowingly investing conservatively or aggressively. And neither of these scenarios are good.
The most effective way to reduce risk is to constantly update and recalibrate your investments. This is not a one-time thing. Investments should be updated and recalibrated every 6 to 12 months or whenever there is a major market correction or major life event.
5 Leave a legacy, not a mess
When you think about your real priorities in life, it’s your family. One of the most important things you can do for your family is to ensure that your property is protected when you die.
If you don’t have a plan to protect your property in Utah, all your assets, including homes, bank accounts, investments, and cars, can be tied up in probate courts for years. You may even be taxed.
The best way this can be avoided is by creating real estate that protects assets and ensures that those assets go directly to those in need rather than to the government. It also helps prevent disputes (unfortunately, sibling disputes are more common than you might think).
summary
Have you ever done more than save and invest your money for retirement?
Have you created a good and comprehensive plan that will allow you to make the most of every dollar you save?
As a special offer for KSL.com readers, we create a customized retirement game plan for your specific situation.
We call this the BOSS Retirement Blueprint. This is a comprehensive plan that will help you reduce your taxes. generate income; pay medical bills; Reduce risk. Maximize social security benefits. Create a traditional plan, etc.
This is a limited time offer and there is no cost or obligation.
If you need to get the most out of your retirement, this retirement blueprint can be your single most important tool for success.
Click here to schedule your first analysis.
BOSS Retirement Solutions has won Utah’s Best of State Award four times. Tyson Thacker and Ryan Thacker are president and CEO of BOSS Retirement Solutions, with his seven offices in Salt Lake City.
Advisory services provided through BOSS Retirement Advisors, an SEC-registered investment advisory firm. Insurance products and services offered through BOSS Retirement Solutions. The information contained in this material is provided for informational purposes only and the statements contained herein do not constitute tax, legal or investment advice. This information is not intended to be used as the sole basis for making financial decisions and should not be construed as advice designed to meet the specific needs of your individual situation. Please consult an independent attorney or tax advisor for tax matters. Our company is not affiliated with the US government or any government agency.
