June 2026 - Agemy Financial Strategies

Succession Planning for a Lasting Legacy

News, Retirement Income Planning, Retirement Planning

Family-owned and operated businesses are the backbone of the American economy. They reflect resilience, tradition, and long-term vision, often built through decades of dedication, sacrifice, and commitment across generations.

On National Family-Owned & Operated Business Day, we recognize the families behind these businesses and the important role they play in their communities and industries.

Along with celebration comes an important consideration: planning for the future.

Succession planning is not only a business decision; it is a long-term planning process intended to support continuity, stability, and legacy goals.

Why Succession Planning Matters

Many family businesses are built with the intention of being passed down, yet the transition process is not always formally documented or clearly defined. Without advance planning, transitions may become more complex than anticipated.

Succession planning can help families and business owners address important questions such as:

Who may be involved in future leadership roles?
How might ownership be transitioned over time?
What type of transition timeline is appropriate for the business and family?
How can family dynamics be thoughtfully considered alongside business decisions?
What financial planning considerations may be relevant during a transition?

Having a structured approach in place may help reduce uncertainty and support more informed decision-making over time.

The Emotional and Financial Considerations of Transition

Family businesses often involve a unique blend of personal relationships and financial responsibilities. Because of this, succession planning can involve both practical and emotional considerations.

Some common dynamics include:

Differing perspectives among family members
Varying levels of interest in continuing the business
Readiness of next-generation leadership
Considerations around fairness and inheritance
Emotional difficulty in stepping back from a long-held role

Open communication and early planning discussions may help families navigate these topics in a more structured and constructive way.

Key Components of a Succession Plan

While each business is unique, many succession planning approaches include several common elements:

1. Leadership Transition Considerations

Identifying potential successors and outlining a general transition timeline may help support business continuity. Some families choose to implement gradual transitions that allow for mentorship and knowledge transfer.

2. Ownership Structure Planning

Planning for how ownership interests may be transferred is an important component of succession. This can include strategies such as gifting, buy-sell agreements, or restructuring ownership arrangements in coordination with legal and tax professionals.

It is also worth noting that the federal estate and gift tax exemption rose to $15 million per person ($30 million for married couples) in 2026 — permanently — which may create meaningful opportunities for tax-efficient ownership transfers that were not previously available.

3. Financial and Tax Considerations

Business transitions may have financial and tax implications. Early planning may help families evaluate potential impacts and consider strategies aligned with long-term goals.

The 2026 tax landscape, including changes introduced by the One Big Beautiful Bill Act, may affect how business transitions are structured, particularly around gifting strategies and estate planning thresholds.

4. Contingency Planning

Unexpected events can occur at any time. Establishing contingency plans may help support operational stability in the event of unforeseen changes.

5. Family Communication and Governance

Some families find it helpful to establish structured communication practices or governance frameworks to support ongoing alignment and decision-making.

Common Challenges in Family Business Succession

Despite best intentions, succession planning is sometimes delayed or overlooked. Common challenges may include:

Delaying conversations about transition planning
Limited communication between stakeholders
Assuming all family members have the same goals or interests
Not fully considering liquidity or retirement income needs of current owners
Relying on informal or undocumented arrangements

Addressing these considerations early may help reduce complications later in the process.

The Role of Financial Planning in Succession

Succession planning is not only about leadership; it also involves financial considerations for both the business and the individuals involved.

A comprehensive financial planning approach may help:

Evaluate how business value fits into broader retirement planning
Consider tax-efficient strategies for ownership transitions
Compare potential outcomes of selling versus transferring a business
Coordinate business assets with personal financial goals
Assess income planning considerations for retiring owners

For many family business owners, a significant portion of their net worth may be tied to the business. As a result, integrating financial planning into the succession process can be an important step in supporting long-term objectives.

Starting the Conversation

One of the most important steps in succession planning is beginning the discussion.

While these conversations can feel complex or sensitive, early planning may provide greater flexibility and more options over time.

Helpful starting points may include:

Discussing long-term goals as a family
Identifying potential successors and their interest levels
Reviewing existing business and estate planning documents
Considering potential retirement timelines for current owners
Engaging appropriate professional advisors for guidance

Even informal conversations can help create clarity and direction for future planning.

How Agemy Financial Strategies Can Support the Process

At Agemy Financial Strategies, we recognize that family-owned businesses represent more than financial assets; they reflect values, relationships, and long-term legacies.

Our role is to support clients as they think through the financial aspects of business transition planning by:

Helping evaluate how business ownership may fit into retirement planning goals
Assisting in reviewing potential financial strategies related to transitions
Coordinating with legal and tax professionals when appropriate
Supporting long-term income and retirement planning considerations
Encouraging thoughtful, multi-generational financial conversations

Succession planning is an ongoing process that may evolve over time. Our goal is to help clients gain clarity as they consider how their business and legacy objectives intersect.

Final Thoughts

Family-owned businesses carry a meaningful legacy built over years of dedication and hard work. Thoughtful planning can help support the continuity of that legacy and provide clarity for future generations.

On National Family-Owned & Operated Business Day, it is worth considering not only how a business was built, but also how its future can be thoughtfully planned.

With early preparation, open communication, and coordinated planning, families may be better positioned to navigate transitions with confidence and intention.

Frequently Asked Questions (FAQs)

1. When should a family business start succession planning?

Succession planning is often most effective when started well in advance of an anticipated transition. Early planning may allow for more flexibility and smoother decision-making over time.

2. What happens if a family business does not have a succession plan?

Without a clear plan, transitions may become more complex and could lead to uncertainty around leadership, ownership, and financial continuity.

3. Is succession planning only about choosing a successor?

No. Succession planning typically includes leadership transition, ownership structure, financial considerations, tax planning, and family communication, not just selecting a future leader.

4. Do all family members need to be involved in the business to inherit it?

Not necessarily. Families often structure ownership and inheritance differently from operational leadership. These decisions may vary based on goals, fairness considerations, and financial planning strategies.

5. How can financial planning support succession planning?

Financial planning may help align business value with retirement goals, evaluate transition strategies, and support long-term income and liquidity planning for business owners. Given significant 2026 tax law changes — including the permanently raised estate tax exemption — working with a financial professional now may offer more strategic options than waiting.

Investment advisory services are offered through Agemy Wealth Advisors, LLC, a Registered Investment Adviser and fiduciary to its clients. Agemy Financial Strategies, Inc. is a franchisee of Retirement Income Source®, LLC. Agemy Financial Strategies, Inc. and Agemy Wealth Advisors, LLC are affiliated entities but are not affiliated with Retirement Income Source®, LLC.

This material is provided for informational and educational purposes only and should not be construed as personalized investment, financial, tax, legal, or estate planning advice. The information presented is general in nature and may not be applicable to your individual circumstances. You should consult with qualified professionals before making financial, tax, legal, or estate planning decisions.

Financial planning and investment strategies involve risk, including the possible loss of principal. No strategy can guarantee outcomes or protect against all market conditions. Past performance is not indicative of future results.

June 18, 2026/by Agemy Financial Strategies

Hidden Costs That Can Impact Retirement

News, Retirement Income Planning, Retirement Planning

Planning Beyond the Obvious

When people think about retirement, they often focus on the major expenses they expect to face, such as housing, healthcare, travel, and everyday living costs. While these are certainly important considerations, many retirees encounter additional expenses they did not fully anticipate during their working years.

Even a well-prepared retirement strategy can be affected by unexpected or overlooked costs. Understanding these potential expenses can help you create a more comprehensive retirement plan and reduce the likelihood of financial surprises down the road.

Discover the hidden costs that can impact retirement and why planning for them matters.

Healthcare Expenses Beyond Medicare

Many retirees assume that Medicare will cover all of their healthcare needs. While Medicare can help cover a significant portion of medical expenses, it does not pay for everything.

Retirees may still be responsible for:

Premiums
Deductibles and copayments
Prescription drug costs
Dental care
Vision care
Hearing aids and related services

Healthcare costs can increase over time, particularly as individuals age and require more frequent medical attention. Planning for out-of-pocket healthcare expenses can be an important component of a retirement income strategy.

Long-Term Care Needs

One of the most significant retirement expenses is often one that people hope they will never need.

Long-term care may include:

Assisted living facilities
Skilled nursing care
In-home caregiving services
Adult day care programs

These services can be costly, and Medicare generally does not cover most custodial long-term care expenses, though it may provide limited coverage for certain skilled nursing and rehabilitation services. However, under SECURE 2.0, retirees may now withdraw up to $2,500 per year from IRAs or 401(k)s penalty-free to pay qualifying long-term care insurance premiums — a meaningful planning opportunity worth exploring. While not everyone will require extensive care, considering how these expenses could affect your financial future can be an important part of retirement planning.

Inflation’s Impact Over Time

Inflation may not feel like a hidden cost at first, but its long-term effects can be substantial.

Even modest inflation can reduce purchasing power over a retirement that may last 20, 30, or even more years. Everyday expenses such as groceries, utilities, transportation, and healthcare often become more expensive over time.

A retirement income plan should account for the possibility that future expenses may be significantly higher than they are today.

Taxes in Retirement

Many retirees are surprised to learn that retirement does not necessarily mean the end of taxes.

Depending on individual circumstances, taxes may apply to:

Traditional IRA withdrawals
Certain retirement plan distributions
Pension income
Investment income
A portion of Social Security benefits (Note: As of 2026, retirees aged 65 and older may be eligible for a new $6,000 Senior Bonus Deduction ($12,000 for married couples filing jointly) through 2028, which may reduce the amount of Social Security income subject to federal tax. Income limits apply.)

Tax considerations can play an important role in retirement income planning. Understanding how withdrawals from various accounts may affect your tax situation can help support more informed financial decisions.

Homeownership Expenses

Many people enter retirement with the goal of remaining in their current home. Whether a mortgage remains or has been paid off, housing-related expenses often continue throughout retirement.

These may include:

Property taxes
Homeowners insurance
Maintenance and repairs
Landscaping and upkeep
Home modifications for aging in place

Unexpected repairs, such as replacing a roof, HVAC system, or major appliance, can create significant expenses that may not have been included in a retirement budget.

Supporting Adult Children or Family Members

Many retirees find themselves providing financial assistance to family members long after they expected those responsibilities to end.

This support may involve:

Helping adult children with housing expenses
Assisting with education costs
Supporting grandchildren
Providing care for aging parents

While helping loved ones can be personally rewarding, it can also place additional pressure on retirement assets if not carefully planned for.

Travel and Lifestyle Spending

Retirement often creates opportunities to pursue hobbies, travel, and new experiences. While these activities can enhance quality of life, they may cost more than anticipated.

Many retirees discover that their spending remains elevated during the early years of retirement as they take advantage of newfound freedom and flexibility. Factoring lifestyle goals into a retirement strategy can help create a more realistic financial picture.

Market Volatility and Sequence of Returns Risk

For retirees who rely on investment portfolios to help generate income, market fluctuations can create challenges.

One often-overlooked consideration is sequence of returns risk, which refers to the impact of experiencing market declines early in retirement while simultaneously taking withdrawals from investment accounts.

Although market performance cannot be predicted, understanding how volatility may affect retirement income can be an important part of a comprehensive financial strategy.

Estate and Legacy Planning Costs

Many individuals want to leave a meaningful legacy for their loved ones or charitable organizations. However, estate planning itself may involve costs that are sometimes overlooked.

Potential expenses may include:

Legal fees
Trust administration costs
Beneficiary updates
Professional tax planning
Executor or trustee services

It’s worth noting that the federal estate tax exemption rose to $15 million per person ($30 million for married couples) in 2026 — permanently — making this an important time to review existing estate plans, as older documents may reflect outdated thresholds.

Regularly reviewing estate planning documents can help ensure they continue to reflect your wishes and current circumstances.

How Agemy Financial Strategies Can Help

Planning for retirement involves much more than building savings. It requires understanding how income, taxes, healthcare expenses, inflation, market fluctuations, and legacy goals may interact throughout retirement.

At Agemy Financial Strategies, we work with individuals and families to create personalized retirement strategies designed around their unique goals, concerns, and financial circumstances. Our process focuses on helping clients identify potential risks, evaluate opportunities, and develop a comprehensive plan for the future.

Whether you are approaching retirement, transitioning into retirement, or already retired, our team can help you:

Evaluate retirement income sources
Develop strategies to address inflation and rising costs
Review withdrawal strategies and related tax considerations
Assess healthcare and long-term care planning needs
Align investment strategies with retirement objectives
Incorporate estate and legacy planning goals into an overall financial strategy

Retirement planning is not a one-time event. As life changes and financial markets evolve, regular reviews can help ensure your strategy remains aligned with your long-term objectives.

By taking a proactive approach to planning, you can gain greater clarity about the factors that may affect your retirement and make more informed decisions about your financial future.

Final Thoughts: Building a More Complete Retirement Strategy

Retirement planning involves much more than estimating monthly living expenses. Healthcare costs, taxes, inflation, housing expenses, family obligations, and other hidden costs can all influence your long-term financial picture.

While it may be impossible to anticipate every expense, identifying potential challenges ahead of time can help individuals feel better prepared to make informed financial decisions.

At Agemy Financial Strategies, we believe retirement planning should consider both the expected and unexpected aspects of life. By taking a comprehensive approach to income planning, risk management, and long-term financial goals, individuals and families can work toward a retirement strategy designed to support their unique needs and objectives.

Frequently Asked Questions About Hidden Retirement Costs

1. What is the biggest hidden cost in retirement?

The answer varies by individual, but healthcare expenses are often cited as one of the most significant retirement costs retirees face. Out-of-pocket medical expenses, prescription medications, and potential long-term care needs can have a substantial impact on retirement finances over time.

2. How much should I budget for healthcare in retirement?

Healthcare costs depend on factors such as age, location, health status, and insurance coverage. Working with a financial professional can help you estimate potential expenses and incorporate them into your retirement strategy.

3. Does Medicare cover long-term care?

Generally, Medicare provides limited coverage for certain short-term skilled nursing and rehabilitation services. It does not typically cover extended custodial care, assisted living, or long-term nursing home expenses.

4. Why are taxes considered a hidden retirement cost?

Many retirees assume their tax burden will significantly decrease after they stop working. However, withdrawals from traditional retirement accounts, pension income, investment income, and portions of Social Security benefits may still be subject to taxation. A new Senior Bonus Deduction available through 2028 may help reduce taxable income for eligible retirees aged 65 and older.

5. How does inflation affect retirement planning?

Inflation reduces purchasing power over time, meaning the same amount of money may buy less in the future. A retirement plan should consider how rising costs could impact spending needs throughout retirement.

6. What is sequence of returns risk?

Sequence of returns risk refers to the possibility that poor market performance early in retirement could negatively affect a portfolio when withdrawals are being taken. This risk highlights the importance of having a well-thought-out income and investment strategy.

7. When should I start planning for retirement?

The earlier you begin planning, the more options may be available to you. However, it is never too late to evaluate your financial situation and develop a retirement strategy aligned with your goals and financial circumstances.

8. How often should I review my retirement plan?

Many financial professionals recommend reviewing your retirement strategy at least annually or whenever significant life events occur, such as retirement, changes in health, inheritance, marriage, divorce, or major market events.

All investing involves risk, including the possible loss of principal. No investment strategy can guarantee results or protect against loss in all market conditions. Past performance is not indicative of future results.

June 12, 2026/by Agemy Financial Strategies

The Biggest Shift in Retirement Planning Most Investors Miss

Investment Management, News, Retirement Income Planning, Retirement Planning

Retirement Isn’t a Date — It’s a Financial Shift

Retirement is often thought of as a milestone you reach at a specific age—62, 65, or 67. Those ages may determine when you can access certain benefits like Social Security or Medicare, but they don’t define what retirement actually is.

From a planning perspective, retirement is better understood as a transition in how your money works.

You move from earning income through work to generating income from the assets you’ve built over time.

That change sounds simple, but it often requires a meaningful shift in how investors think about their portfolios, risk, and decision-making.

All investing involves risk, including the potential loss of principal, and no investment strategy can guarantee results.

Two Phases of Investing Most People Experience

Most investors naturally move through two distinct phases: accumulation and distribution. The challenge is that the rules change significantly between the two, and many portfolios are never formally adjusted for that shift.

The Accumulation Phase: Building Wealth Over Time

During your working years, the focus is typically on growth.

You may hear this referred to as the “401(k) mindset,” or what’s also called the accumulation phase.

In this stage, the priorities often include:

Growing account balances over time
Contributing regularly to retirement accounts
Staying invested through market cycles
Allowing compounding to do the heavy lifting

Time can be the most powerful asset in this phase. Market downturns, while uncomfortable, are generally viewed as temporary—because there is often time to recover and continue contributing.

The primary goal is simple: build wealth.

The Distribution Phase: Turning Assets Into Income

Retirement introduces a different question entirely: How do I turn what I’ve built into income I can rely on?

This is the distribution phase.

Instead of adding money to your portfolio, you begin withdrawing from it. That shift can change the entire structure of the plan.

Key priorities often become:

Creating a consistent retirement income
Managing withdrawal strategy
Coordinating taxes and distributions
Balancing growth with stability

In this phase, markets still matter—but timing and sequence can matter more than long-term averages alone.

Why This Transition Matters More Than Most Investors Realize

A portfolio built for accumulation is designed with a long runway and ongoing contributions.

In retirement, that runway changes.

Withdrawals begin. Contributions typically stop. And market declines may have a more immediate impact because money is being actively removed from the portfolio.

This is where planning often needs to evolve—not because the portfolio is “wrong,” but because the purpose has changed.

Income Planning: Structuring the Retirement Paycheck

One of the central goals in retirement planning is turning an investment portfolio into a reliable income system.

That may involve a combination of:

Dividend-paying equities
Bonds and other fixed-income investments
Cash reserves for short-term spending needs
Additional income-oriented strategies based on individual circumstances

The objective is not to eliminate market participation, but to help support withdrawals in a more structured and sustainable way, recognizing that outcomes will vary.

Sequence of Returns Risk: Why Timing Matters

Most investors are familiar with the idea that markets fluctuate. What is less commonly understood is how the timing of those fluctuations can impact retirement outcomes.

This is known as the sequence of returns risk.

It refers to the impact that early negative returns can have when withdrawals are also being taken from a portfolio.

Two investors can experience the same average return over time—but the one who encounters early market declines while withdrawing income may experience a very different long-term outcome.

This is why retirement planning often focuses not just on returns, but on how and when money is being withdrawn.

Understanding Withdrawals: The Reverse of Accumulation

During your working years, your portfolio is typically funded by contributions.

In retirement, that process reverses.

Instead of adding money during market downturns, you may be withdrawing from assets that have temporarily declined in value.

This creates an important planning consideration:

In down markets, withdrawals may require selling more shares
In strong markets, withdrawals may be more efficient

Over time, how withdrawals are structured may influence the durability of a portfolio.

Required Minimum Distributions (RMDs)

For tax-deferred accounts such as traditional IRAs and 401(k)s, the IRS requires minimum withdrawals beginning at a specific age.

These Required Minimum Distributions (RMDs):

Must be taken annually once they begin
Are calculated using IRS life expectancy tables
Are taxed as ordinary income
Apply regardless of market performance

Because RMDs are mandatory, they often become an important part of broader tax and income planning in retirement.

Coordinating withdrawals in advance may help reduce surprises and may improve overall tax efficiency.

Fixed Income: Not All Income Is Structured the Same

Fixed-income investments can play an important role in retirement, but they are not all structured the same way.

Individual Bonds

Held to maturity if not sold
Provide defined interest payments
Return principal at maturity (assuming no default)

Bond Funds

Hold a diversified pool of bonds
Do not have a set maturity date
Fluctuate in value as interest rates change

Each approach may serve different purposes depending on liquidity needs, income preferences, and market conditions.

Bond investments are subject to risks including interest rate risk, credit risk, and inflation risk.

The Importance of Clear Communication in Planning

One of the most overlooked parts of retirement planning is language.

Terms like “conservative,” “moderate,” or “growth-oriented” can mean very different things depending on perspective.

For one investor, “conservative” may mean minimizing downside risk. For another, it may mean prioritizing income stability.

If these definitions are not clearly aligned, expectations can drift away from how a portfolio is actually structured.

That’s why clarity around goals, risk tolerance, and income needs can be an important part of the planning process.

Building a Retirement Income Strategy

A well-structured retirement plan is typically centered around a few key questions:

How much income is needed each year?
Where will that income come from?
How should withdrawals be structured over time?
How should taxes and RMDs be managed?
How does the portfolio respond to market changes?

Rather than focusing only on growth, retirement planning emphasizes sustainability, with the goal of aligning assets with long-term income needs.

How Agemy Financial Strategies Can Help With This Transition

Moving from the accumulation phase to the retirement income phase is one of the most important financial shifts an investor can experience.

While the concepts are straightforward, the implementation often requires coordination across investments, taxes, income needs, and risk considerations.

At Agemy Financial Strategies, we work with individuals who are approaching or already in retirement to help provide clarity around this transition and support the development of a more structured income-focused plan.

This process may include:

Reviewing how your current portfolio aligns with retirement income needs
Identifying gaps between expected income and the current structure
Evaluating how withdrawals, taxes, and market conditions may interact over time
Exploring approaches that may help organize income more efficiently
Aligning your investment strategy with your personal goals and definition of financial independence

The goal is not to predict markets, but to help you better understand how your financial strategy may function under different retirement scenarios.

For many investors, this is not about starting over—it’s about refining what already exists so it is better aligned with the next phase of life.

Final Thoughts: A Shift in How You Think About Money

Retirement is not just a financial milestone—it is a change in how your portfolio is used.

The focus shifts from building wealth to supporting income, from accumulation to distribution, and from long-term growth alone to long-term sustainability.

A thoughtful plan recognizes both market behavior and personal income needs, helping ensure that financial decisions remain aligned with life after work.

Educational Resources

Agemy Financial Strategies provides educational materials designed to help individuals better understand retirement income planning.

Learn more at agemy.com or call 800-725-7616. There is no obligation to engage our services.

This material is provided for informational and educational purposes only and should not be construed as personalized investment, tax, or legal advice. You should consult with a qualified professional before making any financial decisions based on your individual circumstances.

June 5, 2026/by Agemy Financial Strategies

Archive for month: June, 2026