5 Pillars of Retirement Literacy
April 27, 2023
A secure and steady retirement strategy is what we all desire. However, it is very important to start with a strong foundation! You must consider the 5 pillars of financial and retirement literacy as you create your plan. At Welcome Home Financial Partners, we lead our clients through these pillars of retirement to ensure a solid strategy.
Taxes
Taxes can become one of the biggest expenses in your retirement unless you plan correctly for it. There are several ways to mitigate taxes in retirement: investing in a Roth IRA, making strategic withdrawals outside of RMDs, and investing in long-term, lower-taxed capital gains. And, while taxes are often reviewed by a CPA when filing, it is important to speak with a retirement advisor who can understand the impact taxes might have on your retirement income.
Income
Retirement cannot happen without a plan for how to keep your income flowing after your last day at work. There are many ways to secure your income, like by purchasing an annuity, being thoughtful about when you claim Social Security, or pulling money from any investments you may have.
Estate & Legacy Planning
A crucial part of planning your retirement is ensuring that your loved ones will be taken care of in your final wishes. By planning early and efficiently, you could increase the inheritance you leave behind for your beneficiaries. This can be accomplished by limiting estate taxes, setting up trust accounts, and creating your will.
Asset Management & Allocation
There is no one-size-fits-all approach to asset management and allocation, but it is one of the most important decisions retirees can make as investors. Often, people in their working years do not shift their asset allocation to best match their age or update their risk tolerance to be aligned with their retirement timeline. Whether you allocate in stocks, bonds, or cash and equivalents, be sure to speak to your financial advisor about the right path for you.
Life Insurance
When you start looking for a life insurance policy, you will have to decide what type is the best fit for you and how much life insurance you need. There are two main types of life insurance: term (coverage for a specific time period) and permanent (coverage that lasts a lifetime). There are many things to consider when you choose your life insurance policy, and your financial advisor is a great resource for navigating those choices and choosing the right path for you.
This just brushes the surface of these very important topics. Please click here to learn more!
It is important for you to be empowered with the right knowledge before beginning your retirement planning experience. Do not hesitate to reach out to our office with any questions and to schedule your complimentary consultation.
We look forward to meeting you and helping you with your retirement journey!