A good friend of mine often says, “If what you thought to be true turned out not to be true, when would you want to know?” In the context of retirement, this statement is especially true. Many individuals, with good intentions, are unintentionally acting against their true retirement objectives. When you began saving for retirement, did you aim to build the largest portfolio or secure income for life?
Recent statistics show that relying solely on portfolios for retirement income causes a significant amount of stress and sleepless nights for many retirees. This underscores the importance of reevaluating our assumptions. For decades, we’ve been conditioned to save in pretax retirement plans, benefiting from market fluctuations. However, the problem lies in the need for a steady income. Funds withdrawn for living expenses don’t replenish, hastening the depletion of your hard-earned savings.
The solution lies in creating a steady income stream that doesn’t deplete retirement funds. Annuities were designed precisely for this purpose, providing guaranteed income, inflation protection, and long-term care benefits. A well-structured income plan can offer tax-free income, shield from market risks, and ensure long-term financial security—something a portfolio alone can’t guarantee.
Another crucial change often overlooked is taxes. While pretax retirement savings once offered tax advantages, legislative risks and changing tax laws pose new challenges. With over 30 trillion in debt and potential tax law changes looming, it is essential to plan accordingly. Without adapting to these changes, retirees risk having insufficient funds for their lifetime needs.
I offer a complimentary initial consultation to assess how these rule changes impact your retirement plans and explore strategies to address them effectively. To schedule an appointment, please contact my assistant Morgan Wylie at (828) 559-0299 or email her at morgan.wylie@retirerm.com. Let’s navigate these changes together and leverage them to your advantage.