Understanding the complex challenges posed by the retirement phase of your life begins with crafting innovative solutions designed to endure. There are very specific planning opportunities with respect to the preservation and distribution phases of retirement whether you have worked in the public or private sector.
Tax efficient withdrawals, cash flow analysis, timing and methods of social security decisions and legacy planning are just a few of the major decisions that need to be made. Navigating these obstacles takes skill and expertise and failing to do so correctly could have long term adverse effects on your wealth and/or future cash flow.
Public Sector Retirement Considerations
Private Sector Retirement Considerations
Are you contributing to retirement and saving enough?
You begin more boutique planning of your life during retirement.
Fine-tuning retirement hypotheticals to reflect the reality of your retirement.
Having the tough conversations with your family and advisors about the next phase begin.
The proper planning has occurred to make generational transition manageable.
Planning for retirement has changed dramatically over the last several decades. Historically, employees often worked at a single employer for most of their careers and many times counted on a pension to provide for retirement income. That is no longer the case with more burdensome pension obligations, growth of entrepreneurs, small businesses and an emphasis on self-funded retirement.
Core Wealth recognizes the challenges saving for and predicting future income needs during retirement whether you participate in your employers tax-deferred 401(k), 403(b) or SIMPLE IRA or self-fund your own Traditional IRA or ROTH IRA. Often, retirement planning is broken down in five phases: accumulation, pre-retirement, early-retirement, mid-retirement, and late-retirement. Each phase often necessitates changes in investment strategy and risk tolerance to craft the appropriate path toward and through retirement.
Social Security & Medicare Analysis
Evaluating how and where social security fits into your overall retirement plan is an integral part of the retirement planning process. Core Wealth considers social security as a fundamental, income-producing, inflation-protected component of your income-generating portfolio during retirement. Proper analysis of the social security option matrix helps to ensure the path you choose matches your overall retirement plan.
Likewise, evaluating Medicare options adds another layer of necessary complexity to the retirement planning process. Navigating the decision maze of Medicare can baffle even the most experienced and educated, and the wrong choice can potentially damage even the strongest of retirement plans. Core Wealth includes Medicare planning as a part of the overall retirement discussion because every situation and expectation is unique.
Concentrated Stock Positions
Retirees who have worked for a single company during their working years, including executives, often accrue company stock through Employee Stock Ownership Plans (ESOPs) creating a concentrated stock position in their retirement accounts. Concentrated stock positions expose the investor to single stock risk exposure and may not be appropriate for the investor during retirement; however, exiting a concentrated stock position to create diversification can be challenging for a number of reasons including tax implications, liquidity and emotional linkages.
The need to balance the emotional desires of the retiree with the logical aspects of retirement planning is essential in crafting a path through retirement.