Fiduciary Guidance: Navigating Retirement For Older Americans

The end of May signals the end of Older Americans Month, honoring the seniors in our communities and reflecting upon the retirement challenges they often encounter. 

With the last of the 73 million baby boomers hitting 65 in the next six years (2030), the pressures on the retirement system will only intensify. With its myriad savings, investments, and estate decisions, navigating retirement planning can be overwhelmingly complex. This is where a fiduciary advisor steps in to provide valuable assistance. Here’s what you should know.

Protecting Older Americans

When asked whether the nation is grappling with a retirement crisis, 79% of Americans agree. Additionally, over 55% harbor concerns about their ability to attain financial security during retirement. In such an environment, protecting your retirement funds becomes paramount. Collaborating with a fiduciary is a powerful strategy to help protect and preserve your financial future.

The term “fiduciary” signifies trust, as a fiduciary advisor is legally and ethically obligated to act in their client’s best interests. What sets a fiduciary advisor apart from other financial professionals is their commitment to prioritizing their clients’ well-being. This level of trust and integrity is particularly reassuring when navigating the intricate landscape of retirement planning.

One of the key advantages of working with a fiduciary advisor is their personalized approach. They invest time in comprehensively understanding each client’s financial situation, goals, and concerns. Whether you’re approaching retirement, already retired, or supporting an aging loved one through their golden years, a fiduciary advisor can craft a retirement plan that reflects your needs and goals. Let’s explore how a fiduciary can assist you in planning for retirement.

Retirement Income Planning

Have you ever wondered where your retirement money will come from? For most, it’s a mix of qualified retirement plans, Social Security, personal savings, and investments. Planning for retirement involves identifying your income sources, tallying up expenses, devising a savings strategy, and managing assets. Monitoring your potential income sources is crucial once you’ve estimated your retirement needs.

A fiduciary advisor will take the time to understand your specific financial situation. Together, you’ll craft a retirement plan tailored to your retirement age, desired lifestyle, healthcare requirements, and long-term aspirations. It’s important to note that everyone’s retirement income approach differs. The ultimate goal is to create a sustainable income plan that ensures financial security and peace of mind throughout your retirement journey.

Investment Management

Managing investments during retirement requires a delicate balance between growth and preservation of capital. While seeking more stable and low-risk investments is natural, balancing risk and return is crucial. Consider incorporating investments that offer steady income, such as bonds or dividend-paying stocks, into your portfolio. These options provide a regular income stream to supplement your retirement funds.

However, evaluating the risks associated with these investments and having them align with your risk tolerance and financial goals is essential. A fiduciary advisor can help you craft a well-diversified investment portfolio tailored to help meet your needs and goals. They consider factors like your risk tolerance and time horizon when developing a strategic investment plan.

Market fluctuations can alter the composition of your investments over time, potentially disrupting the initial asset allocation. By conducting regular reviews and rebalancing your portfolio, fiduciary advisors can help you adapt to shifting market dynamics.

Tax-Efficient Strategies

In retirement, your income will likely consist of a blend of resources. This includes an array of investments and personal savings like 401(k)s and IRAs. Yet, it’s common to underestimate the intricate connection between these income sources and their tax implications. Here are just a few tax-efficient strategies to consider:

1. Roth Conversions: Consider converting traditional IRA or 401(k) funds into a Roth IRA. While you’ll pay taxes on the converted amount upfront, future withdrawals from a Roth IRA are tax-free, potentially reducing your tax burden in retirement.
2. Strategic Withdrawals: Plan your withdrawals from retirement accounts strategically to minimize tax implications. For example, if you have both taxable and tax-deferred accounts, consider withdrawing from taxable accounts first to allow tax-deferred accounts to continue growing tax-free.
3. Manage Required Minimum Distributions (RMDs): Once you reach the age for RMDs, plan how to distribute these funds to minimize tax impact. While RMDs are mandatory for traditional retirement accounts, careful planning can help mitigate their tax consequences.

Remember, these strategies’ effectiveness depends on your financial situation and goals. Working with a fiduciary advisor can help tailor these strategies to best suit your needs.

Comprehensive Estate Planning

Estate planning is another crucial aspect of retirement planning as it allows retirees to set a blueprint for the distribution of their assets after their passing. Without an estate plan, retirees risk leaving their loved ones without clear instructions on handling their estate. This can lead to confusion, disputes, and potentially costly legal battles.

As life changes, so will your estate plan. It’s important to periodically review your estate plan to help ensure everything is current and meets your requirements. Here are some factors to consider when it’s time to update your estate plan:

• Moving to a new location.
• Getting married or divorced.
• Retiring from work.
• Receiving a substantial inheritance.

A fiduciary advisor can work with you and your estate planning attorney to develop an estate plan that minimizes taxes, ensures your wishes are fulfilled, and provides for your loved ones.

Choosing The Right Advisor

When choosing a fiduciary advisor, look for professionalism, experience, transparency, and a strong ethical foundation. It’s important to know if they have a proven track record and are willing to provide references. A good fiduciary advisor is not just a professional in finance but also an excellent communicator who can explain complex concepts in understandable terms. To showcase our professionalism, see our client reviews:

“I have found the team at Agemy Financial Strategies to be very professional and caring. They are always looking out for what is best for me. If you are planning for retirement or just investing, this is the place. Andrew has always made time to meet with me and answer questions. If you want what’s best for your financial portfolio, look no further.” – Vincent B.

“We have been clients of Andrew for over 30 years. His team are professionals who truly care about our financial future.  He has demonstrated results and earned our trust.  He is representing the next generation as our daughter is also now a client.” – David B.

“The entire Agemy team has always been professional, courteous, and friendly.  But most importantly, they have made the road to retirement and beyond financially stable for me.  They have taken the worry out of navigating my financial path. I highly recommend their services.” – Roleen S.

Working With Agemy Financial Strategies

Retirement planning is not a one-time event but an ongoing process that requires regular monitoring and adjustment. A fiduciary advisor can offer assistance by making adjustments based on changes in life events, market conditions, tax laws, and more. For over 30 years, Agemy Financial Strategies has helped clients plan and prepare for retirement.

Our fiduciary advisors offer customized retirement planning services so our clients can get sound advice and gain knowledge in the following areas:

• Goal Setting: We will help you establish clear and attainable retirement goals, crafting a personalized financial blueprint to realize your retirement lifestyle aspirations.
• Risk Assessment: Identifying potential financial risks is the cornerstone of our approach. We’ll work with you to develop sound strategies that not only identify these risks but also help mitigate them.
• Portfolio Management: Our experience extends to implementing and managing a diversified investment portfolio meticulously aligned with your long-term objectives and risk tolerance.
• Regular Reviews: Financial landscapes are ever-changing. That’s why we’re committed to consistently monitoring and fine-tuning your financial plan to help ensure it remains in harmony with your evolving circumstances.

We understand that retirement planning looks different for each individual, and with that in mind, we carefully craft your plan to meet your specific needs. For a complete list of our service offerings, see here.

Contact us today for more information on our retirement and financial planning services.