Bringing it all together
While you deserve to live the retirement you want, it’s vitally important to account for every expense that could potentially deplete your retirement savings. We will work with you to develop an income plan that will compare your projected retirement income to your projected retirement expenses. By creating a comprehensive income plan, you are creating confidence in the retirement and financial freedom you’ve worked so hard to achieve.
To estimate what your retirement expenses will be, we will start by calculating your current monthly expenses. This should include all household, daily living, entertainment, transportation, health, debts, and charity expenses. After your retirement expenses are calculated, the next step to planning your retirement is to organize your retirement assets and determine the income you will need to cover your expenses.
Why? Because strategically liquidating assets according to tax status can ensure you are putting the most money directly in your pocket. For example, liquidating or restructuring assets with reportable and taxable interest, such as CDs or certain brokerage accounts, can reduce the taxes you will pay on your Social Security benefits.
Life insurance is designed to help solve the problems created when someone dies prematurely. An annuity, on the other hand, is designed to protect against the possibility of living too long. A “fixed indexed” annuity is a contract between an individual and an insurance company. In exchange for a single, lump-sum premium, the insurance company agrees to begin paying a regular income to the purchase for a period of years or life.
There are different types of annuities and purchasing an annuity can form an important part of a retirement income plan. However, annuities can be complex products to navigate. This is where we can help. We have the knowledge and experience to help you find the type of annuity that is right for your retirement income plan.
*Annuity guarantees are backed by the financial strength and claims paying ability of the issuing insurance company. Financial products and services if recommended may include investment advisory fees, commissions and/or other charges.
The Internal Revenue Service has recently updated the tax brackets, standard deductions, and limits on retirement contributions for the 2024 tax year.