Are You Asking the Right Questions Before You Retire?

Are You Asking the Right Questions Before You Retire? Cornerstone Wealth Management

Are You Asking the Right Questions Before You Retire? Cornerstone Wealth Management

You might remember a time when markets kept increasing and your retirement portfolio was smooth sailing. But that was before the recent inflation numbers and market correction. You may have built a substantial nest egg, but even then, you may be concerned about how you will maintain your lifestyle in retirement and how you will avoid running out of money in this new economic environment. Here are a few questions to ask yourself as you plan for your retirement in a new financial environment.

What Will My Tax Rates Be in the Future?

Taxes can be raised at any time, making them a risk factor. This is especially true if you have a significant amount of money saved in a taxable account like a traditional 401(K) or IRA, own real estate, or want to pass on your wealth in a tax-efficient manner. Most of the provisions in the Tax Cuts and Jobs Act will expire at the end of 2025,[1] and the Biden administration has supported several tax-increasing measures on individuals. By taking advantage of current rates and working with a professional, you can create a long-term tax minimization strategy for retirement and adjust it as needed.  

How will I Maintain Income in Retirement?

You might be asking, “where could my retirement income come from?” Whether or not you rely on Social Security for the bulk of your retirement income, you can count on it for a regular flow of payments for the remainder of your life. If you want to supplement your Social Security, you will want to utilize your 401(k) or IRAs. You may also want to consider an annuity. Annuities are insurance-based financial products that accept deposits and then repay them in a series of payments or a single lump sum. The opposite of life insurance, an annuity can help you avoid outliving your money by guaranteeing lifetime or predefined payments.

Do I Have Enough to Retire in Comfort?

To find out how much money you’ll require annually once you retire, you’ll need to first determine how much you’ll need on a monthly basis. List your major expenses, think about if you want to travel or pursue more leisure activities once you have unlimited free time, and keep track of your spending. There is no set quantity you must reach as retirement income requirements vary. It’s also critical to have a strategy to avoid outliving your funds.

We help guide people through the retirement process and create a plan that’s designed specifically for them. Click here to schedule your complimentary retirement readiness meeting to get started.

 

[1] https://www.taxpolicycenter.org/briefing-book/how-did-tax-cuts-and-jobs-act-change-personal-taxes


The article and opinions in this publication are for general information only and are not intended to provide specific advice or Recommendations for any individual. We suggest that you consult your accountant, tax, or legal advisor with regard to your Individual situation. This content was created by Lone Beacon.

Registered Representatives offer securities through Independent Financial Group, LLC (IFG), Member FINRA/SIPC. Investment Advisor Representatives offer Advisory services through Independent Financial Group, LLC (IFG), a Registered Investment Adviser. Cornerstone Wealth Management, Cornerstone Tax Advisory and IFG are unaffiliated entities.

The market indexes discussed are unmanaged and generally considered representative of their respective markets. Individuals cannot directly invest in unmanaged indexes. Past performance does not guarantee future results. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.

Annuities are products of the insurance industry. Guarantees are subject to the claims-paying ability of the insurance company and surrender charges may apply if money is withdrawn before the end of the contract. No investment strategy can guarantee a profit or protect against loss.

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