Celebrating 38 Years in Business 1979 – 2017

July 17, 2018 Client Account Access

Wealth Guidance Group

409 S Pasadena Avenue
Saint Petersburg, FL 33707

Living in Retirement

Give Your Plan a Checkup

Once you’ve retired, managing your money is more important than ever. During your retirement years, your personal goals and situation — as well as the economic environment — are likely to shift. These changes require careful scrutiny, perhaps resulting in adjustments related to your goals, your portfolio or both. The video below can assist in visualizing how your income sources and retirement assets fund your needs and wants in retirement.

We can work with you to regularly review and reassess your portfolio to give you confidence that your portfolio is appropriately balanced between growth-oriented investments and income-focused assets. Contact us today.

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.

Legacy Planning

Depending on your financial situation, you may be confident you can fund a comfortable retirement and still allocate funds to leave an inheritance for family members or to donate to a favorite charity. The first priority should be ensuring your expenses can be met before you leave a monetary legacy behind.

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

Keep in mind that money isn’t everything. Passing on ideals, such as ethics, morals, faith and religious beliefs, is 10 times more important to both baby boomers and their parents than the financial aspects of inheritance, according to the 2006 Allianz American Legacies Study.

Contact us to learn how we can help you to optimize your assets, potentially minimize tax implications, and determine the course most appropriate to your situation, including the selection of effective vehicles to implement your plans.

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.

Withdrawals and Tax Implications

In addition to Social Security benefits, you probably have at least one IRA, 401(k), pension plan or other assets you’re relying on now for income – or counting on later – to finance your retirement years. At this stage you should work with us to maximize the benefits you receive from any withdrawals you are making or plan to make.

Consider how much you need to withdraw from your assets to maintain a sustainable income flow during retirement. Learn more …

Below are some common retirement investments and key considerations for withdrawing your money:

Investments Considerations*
Taxable Accounts (i.e., brokerage, savings and checking accounts)
Withdrawing from these accounts first allows more time for tax-free and tax-deferred plans to grow.
Tax-Free/Tax-Deferred Plans (i.e., Tax-Free – Roth IRA; Tax-Deferred – traditional IRA)
You are required to begin withdrawing money at age 70½, but may consider reinvesting proceeds elsewhere if you do not need the immediate income.
Social Security Benefits The longer you wait to tap these funds, the larger your monthly benefit will be when you do decide to take it. You are required to begin taking benefits at age 70.

We can help develop a withdrawal strategy that takes all of these considerations into account. Contact us today.

* Investors should consult with a tax advisor to determine the tax implications of the withdrawal strategies.

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.

Tapping for Social Security

Although you’re entitled to draw Social Security benefits as early as age 62, tapping into your benefits before full retirement age can permanently reduce your 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%).

Learn more about how Social Security fits into your retirement picture.

When to start taking Social Security benefits depends in large part on your income needs and your health. It’s also important to consider how the amount of your monthly benefit might affect your overall retirement plan, including implications for withdrawal rates and your tax situation, among other factors.

Contact us so we can help you choose the strategy most appropriate for you.

Coping with the Unexpected

Widespread economic weakness and market fluctuations have taken a toll on many investors. If you are at all concerned your retirement plan may no longer be sufficient to meet your needs, don’t delay taking action. While there are no magic fixes, a number of effective strategies do exist for potentially minimizing losses, generating additional income and planning for growth, including:

  • Planning for long-term care needs not covered by Medicare or other insurance
  • Paring your spending and rethinking non-essential goals
  • Allocating a portion — or a greater portion — of your portfolio to undervalued, growth-oriented investments
  • Preserving income with financial products, such as annuities1
  • Hedging income against rising inflation with investment options that adjust to changes in the inflation rate, such as Treasury Inflation-Protected Securities (TIPS)2
  • Returning to work on either a full-time or part-time basis

We can help you look at your retirement plan comprehensively, determine if you have any gaps, and help you identify ways to potentially minimize losses in order to stay on track in retirement. Contact us today to get started.

Note: Growth-oriented investments generally involve greater risks and may not be appropriate for every investor.

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.

1Guarantees are based on the claims-paying ability of the issuing company.

2The principal increases with inflation and decreases with deflation, as measured by the Consumer Price Index. At maturity you are paid the adjusted principal or original principal, whichever is greater. Increases in TIPS principal value as a result of inflation adjustments are taxed as capital gains in the year they occur, even though these increases are not realized until the TIPS are sold or mature. Conversely, decreases in the principal amount due to deflation can be used to offset taxable interest income.

Top