Life Planning Advice Retirement Planning Advice

Nearing The Finish Line: What To Do In The Last Ten Years Of Your Career

Mike Loo, MBA

June 6, 2018

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Approaching retirement can sometimes be as overwhelming and nerve-wracking as the transition into your Golden Years. You may start reflecting on what you’ve accomplished thus far in life and what you envision still achieving.

As you near the finish line, here are four things to do in the last ten years of your career.

Create a List of Things You Want to Accomplish in Retirement

The first step is understanding your goals for your retirement. What lifestyle do you envision maintaining? Will you travel? Will you live in the same home? What will you do during the day? As much as you may enjoy golf, you may tire of doing it every day for weeks on end.

Creating a list of retirement goals gives you something to look forward to, and may even motivate you to save more aggressively to reach your retirement goals faster. For example, if you imagine enjoying plenty of family vacations in retirement, you may need to establish a vacation fund.

You may instead envision spending your time volunteering or enjoying hobbies, be it woodworking, gardening, or painting. Regardless of how you choose to spend your time, make plans for it. If you don’t, other family members may be planning out your time for you. For example, you may become the default caretaker for your aging parents, especially if your other siblings are still working. Or you may become the “full time” babysitter for your grandchildren because your children assume you aren’t doing anything all day.

Pay Off Debt

The less debt you have when you enter retirement, the better. Review all current debts you face and compare interest rates and balances. This can help you decide which to pay off first. Once you’ve eliminated credit card and auto debt, see how you can aggressively pay off your mortgage. Not having a mortgage could significantly reduce your monthly expenses and make a considerable impact on how quickly you deplete your savings.

Along with tackling debt, take care of the big-ticket items now, rather than delaying them. These include replacing your home’s roof or other expensive repairs, updating old appliances, addressing your long-term care needs, and keeping your car in good working shape. It’s ideal to do this now while you still have a paycheck rather than when you’re retired and trying to live off of your savings.

Plan Out Your Expenses and Create a Budget

A common question pre-retirees ask is, “will my income sources cover my needs in retirement?” A budget is helpful throughout life but can be particularly beneficial during retirement when your income may be more limited.

Start by creating a budget that includes your essential expenses (housing, healthcare, and food) and your discretionary expenses (such as traveling, entertainment, and dining out). With this list, match essential expenses with guaranteed income, such as setting aside your Social Security benefits to pay for your healthcare. Then, look at your other savings and income to cover your discretionary expenses.

If your projected expenses don’t match your income and savings, you’ll either need to reconsider your expenses or increase your retirement income. These 10 years leading up to retirement can serve as a “trial run” to help instill a higher level of confidence that you can live off a certain level of income once you retire.

Hire a Financial Advisor

How much should you contribute to your 401(k)? What types of investments make the most sense for your circumstances and goals? Often, it’s not until we face a significant decision or make a mistake when we realize that we weren’t equipped with the proper knowledge. And then it may be too late to find help or rectify any missteps we make.

A financial advisor isn’t just there to hand you a financial plan and set you on your way. Think of an advisor as your lifelong financial partner. He or she can provide education, objective advice, and ongoing guidance as you encounter new challenges and opportunities. This could mean adjusting your strategies, or simply reassuring you of your progress. With education and a reliable partner available to answer your questions, you can feel empowered to make informed decisions.

Next Steps

You don’t have to go at it alone and plan for your retirement on your own. At this point in your life, you should work with an advisor who can help you create a personalized retirement roadmap and work through various retirement scenarios, not just help your money grow. As an independent financial advisor, I want to help you address your retirement questions and feel confident about your future. I can work with you to establish a retirement strategy that integrates your goals and needs. Take the first step by reaching out to me for a complimentary consultation. Call my office at (949) 221-8105 x 2128, or email me at michael.loo@trilogyfs.com.

Do you want to start investing but fear you will be buying in at the top of the market? Well, what if I told you there was a way to invest in which you could take emotion out of the equation altogether, not only banishing market anxiety but actually taking advantage of dreaded market volatility? Too good to be true? Far from it. The panacea exists, and it’s called dollar cost averaging or, as we call it in the finance world: DCA.

Dollar Cost Averaging is a pretty simple financial strategy: you purchase a set dollar amount (say $300) of securities (stocks, mutual funds, etfs, bonds…you get the idea) on the same day each month. Because you are committed to a set dollar investment the total number of shares purchased will vary from month to month based on the market. In months where prices are increasing you receive fewer shares; however, in months with falling prices your money buys MORE shares.

How does this benefit you? It removes emotion from the investment equation by keeping you from attempting to “time the market” (which has been proven to be impossible) and helps establish the saving behavior necessary for long term financial success. You are not waiting for a certain price to be reached before buying and when markets are experiencing volatility you are not selling and sitting on the sidelines waiting for things to settle down and then attempting to determine when to buy back into the market. Rather, you are using a disciplined strategy to steadily contribute to your long term goals and when the market is on sale, prices are declining, your monthly contribution has more buying power.

Here’s what’s even better: you are most likely already taking advantage of DCA as part of your financial plan, without even realizing it! If you are contributing to an employer sponsored retirement plan like a 401(k) (which you should be!), you are taking advantage of Dollar Cost Averaging by setting aside a certain percentage of your pay and investing it on set days each month. But why limit a DCA strategy to just one segment of your financial portfolio? You can leverage Dollar Cost Averaging to efficiently build individual accounts for shorter or medium term priorities such as travel, a new car, or purchasing a house. It’s not magic or rocket science, but Dollar Cost Averaging can help take advantage of volatility in markets, remove emotion from investing, and establish a beneficial pattern of saving for future priorities.

While dollar cost averaging is a powerful financial tool it is only one component of a full financial plan. If you would like to talk more about the impact of dollar cost averaging on your personal financial plan please contact me at zach.swaffer@trilogyfs.com.

Investment Insights

High Net Worth Retirement Planning: Why is Age 59½ a Crucial Milestone?

By Trilogy Financial

July 17, 2024

As you approach age 59½, you’re nearing a significant milestone that brings new opportunities for your financial future. This age marks a turning point where the IRS allows you to withdraw from your retirement accounts without incurring penalties. At Trilogy Financial, we provide comprehensive High Net Worth Retirement Planning strategies tailored to your unique needs, helping you navigate this critical phase with confidence.

Understanding the Importance of Age 59½

Reaching the age of 59½ is a pivotal moment in your retirement journey for several reasons:

Penalty-Free Withdrawals: The IRS permits penalty-free withdrawals from retirement accounts, such as IRAs and 401(k)s, providing greater flexibility in managing your retirement funds.
Catch-Up Contributions: If you’re over 50, you can make additional contributions to your retirement accounts, helping to boost your savings significantly.
Approaching Social Security: You are within a few years of being eligible for Social Security benefits, allowing you to plan more effectively for your retirement income.

Building Your Retirement Savings

Despite the importance of saving for retirement, many Americans find themselves with insufficient funds. According to financial experts, you should aim to have at least $1 million in retirement savings to support a comfortable 30-year retirement. However, the reality is that many people have far less saved.

Strategies to Enhance Your Retirement Savings:

Catch-Up Contributions: If you’re 50 or older, you can contribute additional amounts to your retirement plans. For example, you can make $6,000 in catch-up contributions to 401(k) plans and $1,000 to IRAs annually.
Prioritize Saving Over Spending: Shift your focus from spending to saving, ensuring you allocate a portion of your income to retirement accounts at the beginning of each pay cycle.
Seek Professional Advice: An Executive Financial Planning advisor can provide personalized guidance to help you maximize your retirement savings and take advantage of all available options.

Staying Healthy in Your Golden Years

Maintaining good health is essential for enjoying a fulfilling retirement. As you age, your health needs change, and it’s important to stay proactive about your well-being.

Health Tips for Older Adults:

Regular Check-Ups: Keep up with medical appointments and screenings to catch potential health issues early.
Healthy Diet and Exercise: A balanced diet and regular physical activity can help maintain your vitality and reduce the risk of chronic diseases.
Mental Health: Staying socially active and engaged can improve your mental health and overall quality of life.

Seeking Professional Financial Advice

Navigating the complexities of retirement planning requires experienced guidance. At Trilogy Financial, we offer Customized Retirement Solutions and Private Wealth Services to help you pursue your financial goals. Our services include:

401K Asset Management

Investment Strategies for High-Net-Worth Individuals

Estate and Inheritance Planning

Life and Long-Term Care Insurance

Philanthropic Financial Planning

Our team of financial professionals is dedicated to helping you pursue financial independence and secure a comfortable retirement.

What might a Custom Retirement Solution include?

Multi-Generational Wealth Planning

Multi-Generational Wealth Planning is essential for ensuring that your financial legacy benefits future generations. This involves creating strategies that protect and grow your assets while considering the needs of your children and grandchildren.

Trust Fund Management

Trust Fund Management plays a critical role in managing and distributing your assets according to your wishes. This professional ensures that the trust operates smoothly and that beneficiaries receive their designated assets without delays or legal complications.

High-Net-Worth Tax Strategies

High-Net-Worth Tax Strategies are designed to minimize tax liabilities and maximize the growth of your wealth. Working with a knowledgeable tax advisor can help you implement these strategies effectively.

Customized Wealth Management Plans

Customized Wealth Management Plans provide tailored solutions to meet the unique needs of high-net-worth individuals. These plans consider your specific financial goals and circumstances, offering a personalized approach to managing your wealth.

Legacy Planning for High-Net-Worth Families

Legacy Planning for High-Net-Worth Families ensures that your wealth is transferred according to your wishes and provides for future generations. This includes creating comprehensive estate plans that address your family’s unique needs and goals.

The Takeaway –

Age 59½ marks an important milestone in your retirement planning journey. With the right strategies and professional guidance, you can optimize your retirement savings, navigate Social Security benefits, and maintain your health for a fulfilling retirement. At Trilogy Financial, we specialize in High Net Worth Retirement Planning, Executive Financial Planning, and Private Wealth Services, providing tailored solutions to meet your unique needs. Contact us today to discover how we can help you achieve your financial goals and enjoy a prosperous future.

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