Celebrating 38 Years in Business 1979 – 2017

July 17, 2018 Client Account Access

Wealth Guidance Group

409 S Pasadena Avenue
Saint Petersburg, FL 33707

Approaching Retirement

Assessing your current situation

Do you know how much income you need your assets to generate once you retire?

Chances are you should reevaluate your retirement plan. Your financial circumstances, personal situation or retirement goals may have changed since the last time you reviewed your plan. Market turbulence may also have adversely affected your portfolio, making a fresh look important.

As you revisit your plan with us, we will take a look at factors such as:

  • Your income sources
  • Your assets and anticipated expenses
  • The rate at which you’ll be able to spend in retirement

You’ll also want to consider what appropriate adjustments may entail for you, for example:

  • Paring non-essential spending
  • Reallocating your investment assets
  • Reevaluate your retirement priorities and discuss tradeoffs

Contact us for help with reviewing your retirement plan and making the necessary adjustments to put you on the path to a comfortable retirement.

There is no assurance that any investment strategy will be successful. Investing involves risk and investors may incur a profit or a loss. Past performance is not indicative of future results.

It’s time to get started. Accurately determining the income your investments can generate and building in a buffer to preserve your retirement under difficult conditions takes considerable time and work.

Part of building a retirement plan is articulating your priorities and goals for life in retirement. By working with us, we’ll identify these factors and discuss others that play a key role in a successful retirement plan, such as:

  • Your income sources
  • Your assets and anticipated expenses
  • The rate at which you’ll be able to spend in retirement

Having a plan and continuing to adjust it over time can help put you on the path to a comfortable retirement. Please contact us to get started on formulating a plan to help meet your specific goals and objectives.

There is no assurance that any investment strategy will be successful. Investing involves risk and investors may incur a profit or a loss. Past performance is not indicative of future results.

It’s very important to ensure that your assets are on target to generate the income you’ll need to cover your expenses and achieve your goals in retirement. Learn more…

Making a Plan

First, make sure your retirement team is in place, starting with your financial advisor. Depending on your situation, we may also act as your team’s “quarterback,” coordinating and working with family members, your CPA, an estate attorney, and insurance and trust professionals.

Next, establish your priorities. We can assist you in understanding factors that will impact your retirement plan, such as your retirement lifestyle, risk tolerance, retirement date, unknown risks and your desire to support your family members or a favorite charity.

You must also have a thorough understanding of your situation. We can assist in putting your retirement into perspective by taking a financial inventory, which includes identifying your income sources and assets and distinguishing between your needs and wants.

Legacy Planning

You may want to fund a comfortable retirement, while still allocating funds to leave an inheritance for family or donate to a charity. But your first priority should be to ensure your expenses can be met before you leave a monetary legacy behind.

We can assist with estate and legacy planning, including helping to optimize your assets, potentially minimize tax implications, and determine the course most appropriate to your situation. We can also help select effective vehicles to implement your plans.

Evaluating Your Retirement

Although many individuals nearing retirement have at least one 401(k), IRA or defined benefit plan, rarely will those income sources meet the full range of retirement expenses.

By working with us, we can help determine how much you will need to withdraw from your retirement portfolio to live comfortably in retirement. The less you withdraw, the better your chance your assets can generate stable income through the duration of your retirement. The general rule of thumb is a maximum withdrawal of 4% to 6% per year, but you may need to withdraw more or less depending on your specific circumstances.

You may need to adjust your rate of withdrawal based on future market performance. The sustainable rate of withdrawal is historical and will fluctuate. If your rate of withdrawal is greater than the growth of your assets, you may exhaust your principal.

It’s important to know how you’ll finance your needs and wants in retirement. Learn more…

Social Security benefits are another important aspect of your retirement plan. A variety of factors, such as your age, spouse’s earnings and other sources of income, can affect when you may need to begin receiving your benefits.

Contact us to gain the insight you need to help determine the most appropriate course for you.

Planning for Social Security

Most Americans consider Social Security benefits to be a significant source of reliable income in retirement. Deciding when to start drawing benefits will have a significant impact on your income, and thus your lifestyle in retirement, so it’s especially important to understand the options available to you.

Many people begin taking Social Security benefits as soon as they are eligible at age 62, and consequently receive permanently reduced benefits. In general, electing to delay your benefits past full retirement age – up to age 70 – will increase the amount you are eligible to receive.

For example, assume a person born in 1950 is eligible for a $1,500 monthly benefit at his full retirement age of 66. If he elects to start drawing benefits as soon as he’s eligible at 62, the benefit is reduced to $1,125 (-25%). Conversely, if he delays drawing benefits until 70, the benefit increases to $1,980 (+32%).

The decision around when to begin taking Social Security is a key factor – but there are other important factors to consider:

  • Your health and life expectancy
  • Your spouse’s or ex-spouse’s benefit
  • Whether or not you plan to work after age 62
  • Your taxable income or other income sources in retirement

Contact us to take the first step toward understanding when and how to apply for benefits.

Managing Risk

Regardless of your age or your financial situation, every investment decision entails some sort of risk. We will work with you to identify the factors and risks most relevant to your situation and plan for them, including:


Longer life expectancy means your assets have to last longer. You have to consider the possibility of living 20 or 30 years after you retire.


For example, health insurance premiums and prescription costs are rapidly increasing. If you are retired, this would increase your cost of living, erode the value of your savings and reduce your purchasing power.

Spending and Withdrawals

Overspending, living beyond your means or withdrawing more than the recommended percentage from your retirement funds can adversely affect how long your assets last.

Market Risks

Market declines and the timing of these declines pose risks. How and where your assets are allocated across different asset classes plays a key role in managing this risk.

Unknown Risks

Major health events, disability, long-term care needs and other unexpected occurrences can complicate a retirement plan.

Contact us for more information on how we’ll work together to help address these risks by applying a comprehensive process to plan your retirement.

Healthcare Considerations

One of the most significant risks to ensuring an adequate income stream throughout your lifetime is the rising cost of healthcare.

Conventional medical insurance, including Medicare, leaves uncovered many of the expenses related to nursing home and in-home health costs. Although long-term care insurance fills a number of gaps, if you do not already have a policy in place, you may need to consider whether the benefits outweigh the costs of coverage – which rise with age.

If available, the right policy may be well worth the cost. It can help preserve your assets, minimize your dependence on family members, and enable you to determine how and where you receive long-term care services.

It’s important to consider how you prioritize healthcare expenses in retirement. Learn more …

Did you Know?

The average 65 year old couple can expect to spend roughly $311,000 in health insurance during their lifetime. Including the cost of long-term care, that figure can rise to around $570,000. The annual cost for a nursing home is approximately $71,000 a year for a semi-private room and $79,000 for a private room. In-home care costs $22,000 each year.

Source: Boston College’s Center for Retirement Research, How Much is Enough? The Distribution of Lifetime Healthcare Costs, February 2010.

Contact us for help in determining whether long-term care insurance is appropriate for you, assist in identifying the policy that best suits your needs and work with you to explore all options.

Business Succession

If you’re a small business owner and haven’t already determined your exit strategy, don’t wait any longer. Among many other decisions, you’ll need to determine the most appropriate structure for divesting your business and tapping into the value it represents.

Consider how your business may be an important asset to fund your retirement plan now or in the future. Learn more …

The checklist below shows some of the key options you could consider when thinking through this part of your planning:

  • Sell it to a competitor
  • Sell it to one or more key employees
  • Keep it in the family

Positioning yourself to reap the benefits of the work, time and effort you’ve put into your business requires time, thought and skill. Feel free to contact us to discuss in more depth how these options may fit into your specific situation.

There is no assurance that any investment strategy will be successful. Investing involves risk and investors may incur a profit or a loss. Past performance is not indicative of future results.

Please note, changes in tax laws or regulations may occur at any time and could substantially impact your situation. While we are familiar with the tax provisions of the issues presented herein, as financial advisors of Raymond James we are not qualified to render advice on tax or legal matters. You should discuss any tax or legal matters with the appropriate professional.