Planning Ahead : A Guide to a Stress free Retirement

Retirement is a time of transition, a time to say goodbye to the daily grind of work and hello to a new phase of life. It's a time to pursue interests, travel, and spend time with loved ones. It's also a time to reflect on all that has been accomplished and to start planning for the future.

However, for many people, the thought of retirement can be overwhelming. The change from a structured daily routine to a more relaxed lifestyle can bring uncertainty and a feeling of purposelessness. But with proper planning and preparation, retirement can be one of the most fulfilling times of your life.

Here is one MAJOR step to help make your retirement journey smooth and enjoyable: 

Plan your finances: A secure financial future is essential for a happy retirement. This includes creating a budget, investing in a retirement savings plan, and seeking the advice of a financial advisor and retirement specialist. There’s a big difference between the two. A retirement specialist is as important as your financial advisor because they help you understand how taxes, inflation, and federal/ state laws create income gaps in your retirement.

Many Americans are not aware of the exact net income their own retirement plans that they are paying for today will yield when they retire. As a result, they’re likely going to face an unexpected financial problem.

Do you know your income gap? As a licensed professional, I can help and educate you on how to find what your income gap is and how you can be strategic in fighting the battle against inflation and taxes in order to cover your gap. Many of my clients are amazed at the numerous benefits of strategic planning when I show them exact figures illustrating what dollar amount their retirement will look like if the right options and upgrades are applied.

                                                    The Good and the Bad

😀The good news is that these options and upgrades have been in force and ongoing for decades, and they are available to you. By making smaller adjustments now, you will have less stress in retirement.

☹️The bad news is you may not qualify. Surely, that would not be the end of the world if you do not qualify. There are traditional ways to plan ahead for your retirement. And put simply, I recommend you to have a traditional plan in place such as a 401k, Roth IRA, and 403b. Qualified plans like these have proven successful for many decades. 

The HUGE problem is, most of your income gap will be a result of you paying into a tax-deferred plan such as a 401k, Roth IRA, and 403b. Why? Because your cash value in those plans does not entirely belong to you. A third of it belongs to good old Uncle Sam. This is the plain fact: As long as you have a “traditional” retirement “vehicle” you will have an income gap as a result of taxes and inflation. Think about it, any senior citizen will gladly tell you how many things they could purchase with just one dollar when they were young. Today you can hardly afford a loaf of bread with a dollar in your hand. Yes, inflation is real and there’s no reason to believe that the money you’re putting in your retirement plan today will not be significantly impacted by inflation when you decide to pull it out. Add taxes to the equation and there you have your unexpected financial problem that many Americans face at retirement.

                                                                  The Takeaway 

The level-headed conclusion is that although traditional retirement vehicles such as a 401k, 403b ROTH IRA and other qualified plans are great tools for retirement planning, their major disadvantage is in the way that they are pre-structured to charge you taxes when you begin withdrawing money in your retirement. Add inflation to the equation your gap begins to widen.

Although we will all continue paying taxes one way or another and dealing with inflation, there is a way we can correctly structure our retirement planning to become tax-advantaged and fill our retirement gap. The cherry on top is that great planning can also be l be a great tool for preparing to win the battle against inflation.

Are you curious about your gap and how that would impact your retirement?

Contact me using the form below and I will be happy to follow up.