Amid the retirement planning process, one crucial factor is often overlooked: inflation. This silent yet powerful force can significantly affect the purchasing power of your retirement savings over time, potentially altering the landscape of your golden years. Let's explore inflation and its potential impact on your retirement savings in the long run. As prices go up over the years, the value of your retirement savings might not stretch as far as you'd hoped. This means your money won't buy as much as it used to, and your income could take a hit. Planning for inflation in your retirement strat ..read more

Retirement marks a significant transition in life, a time when you trade the daily grind of work for the leisurely pursuits of the golden years. While this stage of life brings with it newfound freedom and opportunities, it also introduces a host of financial considerations, especially healthcare costs. As retirees, it's important to plan for the unpredictability of healthcare expenses to protect your well-being and financial security. At Retire Wise, we understand the importance of navigating these waters and help you ensure that your retirement years truly allow you to shine. Understanding H ..read more

Retirement is far more than just a financial milestone. It’s a major time of transition that requires careful planning and consideration in all aspects of your life. Our comprehensive approach to retirement planning goes through simple financial planning, but it also encompasses the non-financial aspects of retirement, too. We believe that true fulfillment in retirement comes from balancing both your financial security and your personal well-being so you can truly enjoy your golden years.   Clarifying Your Retirement Goals Retirement is a time for self-reflection and evaluation of your pr ..read more

Fortunately, not all investments are subject to the same tax treatment, and if you liquidate them in a tax-efficient way, you could help your savings last longer. In light of this, here is a methodical process for taking tax-advantageous withdrawals during retirement. First, take your RMDs. Take the required minimum distributions (RMDs) from your tax-deferred retirement accounts first if you're 73 years of age or older. If you don't, you'll be penalized 25% of the amount that was required and the amount that you withdrew. The majority of financial institutions can assist you in calculating you ..read more

Figuring out how much income you need during retirement and formulating a retirement income plan is the most important aspect of financial planning. Don’t believe me? Well, the theory is advanced by Robert C. Merton, recipient of the 1997 Alfred Nobel Memorial Prize in Economic Sciences and Distinguished Professor of Finance at the MIT Sloan School of Management. Merton believes that the most important aspect of retirement planning is to estimate your retirement income and insure that it is adequate to cover your spending. He rejects the focus on net worth and savings formulas without first un ..read more

Assessing Your Financial Situation The first step in financial planning is to assess your current financial situation. This means reviewing your income, expenses, debts, and savings. Create a detailed budget that accounts for all your monthly expenditures and any irregular expenses that may arise throughout the year. Understanding where your money goes each month is crucial to identifying potential savings and areas where you can cut back. Setting Financial Goals Once you have a clear picture of your finances, it's time to set specific, measurable, achievable, relevant, and time-bound (SMART ..read more

Here’s how that happens, and a couple of ways to help avoid it. The last several years leading up to and the first few years of retirement can make or break your portfolio. Sequence risk is one of the largest risks someone new to retirement faces. In fact, this risk starts 5-10 years before retirement! Many Americans wisely set aside money for the day when they can stop working, kick back, and enjoy the twilight years of their lives. But be warned: All your careful retirement planning could be tripped up by something known as the sequence-of-returns risk. That is to say, when you retire and st ..read more

Understanding the Secure Act 2.0 The Setting Every Community Up for Retirement Enhancement (Secure) Act 2.0 is a bipartisan piece of legislation that aims to build upon the foundation laid by the original Secure Act, which was signed into law in 2019. The Secure Act 2.0 introduces several changes to retirement planning and financial security, taking into account the evolving demographic and economic landscape. 1. Expanded Access to Retirement Plans One of the notable changes introduced by the Secure Act 2.0 is the expansion of access to retirement plans. The legislation encourages small busine ..read more

If you’ve saved diligently, you can still convert your nest egg into a reliable source of income that will cover your basic needs, along with those vacations you hope to take when it’s safe to travel again. But to reduce the risk of outliving your savings, you may need to revisit and revise some of the old rules of thumb. Tapping Your Accounts One of the biggest challenges facing retirees is figuring out how much they can withdraw from their IRA, 401k, plans, taxable accounts and other savings each year and still have enough to maintain their standard of living if they live into ..read more

Did you know that the 401k fees are even higher when you leave a company. This eats into your earnings, regardless of how the account is performing and takes away how much you get in retirement. Unleash Your Old 401(k)/403(b), TSP, TRS or other past employer plans, roll it over and secure Your Financial Future! This move could have a significant impact on your retirement savings. One example, we had a client leave money in an old 401k for three years, that cost them $9,900 in fees, which resulted in $85,500 less for them in retirement. We see examples of this all the time, and you deserve a ha ..read more