The Power of Compound Interest: How to Protect and Grow Your Retirement Nest Egg

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From Warren Buffett and Charlie Munger to Albert Einstein and Chuck Akre, some of the greatest minds in finance (and science) have praised the power of compound interest. But what exactly makes it so powerful—and how can you put this timeless strategy to work for your own financial future?

If you’ve spent the last several decades investing—whether in stocks, real estate, or even art—you likely have a substantial nest egg. The question now is: How do you protect it while helping ensure it continues to grow wisely through retirement? Understanding compound interest may be your best-kept secret.

What Is Compound Interest—Really?

Most people believe their money is compounding simply because their investments are increasing in value. But true compounding requires more than appreciation—it requires reinvestment.

To put it simply, compound interest means earning interest on your interest. When the returns on your investments—be it interest, dividends, or capital gains—are reinvested instead of withdrawn, those earnings generate their own earnings. Over time, this cycle of reinvestment accelerates wealth creation in ways that simple growth cannot.

Unfortunately, many investors believe they are benefiting from compound interest when, in fact, their portfolios are only experiencing passive appreciation, which is often inconsistent and susceptible to market volatility. Without a reinvestment mechanism, that growth is linear, not exponential.

Famous Names and Faces

Influential figures like Warren Buffett, Charlie Munger, and even Albert Einstein have long touted compound interest as one of the most powerful forces in finance. Why? Because it rewards patience, consistency, and time—allowing your money to grow not just on your initial investment, but on the interest it earns over time:

“The first rule of compounding: Never interrupt it unnecessarily.” – Charlie Munger

“The ability to earn earnings upon earnings is essentially the definition of compounding.” – Chuck Akre

“Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn’t, pays it.” – Albert Einstein.

This snowball effect can turn modest savings into significant wealth, making it a cornerstone of long-term financial success. Whether you’re building retirement income or teaching your kids about saving, understanding compound interest is key to unlocking real financial momentum.

Why Compound Interest Matters in Retirement

During your working years, your primary focus is on accumulation, saving, and growing your wealth. But once you retire, your financial strategy needs to shift dramatically. You’re no longer just building a pile of assets—you’re relying on them to provide sustainable, lifelong income.

This is where compound interest can play a transformative role. With the right strategies, it allows your retirement portfolio to continue working for you, creating new earnings without taking on unnecessary risk.

Income-generating investments that can enable compounding include:

These types of investments provide regular income, which can then be reinvested, allowing for consistent, measurable compounding even in retirement.

Understanding “Returnless Risk”

One of the most common pitfalls retirees face is what we call “returnless risk”—taking on high levels of market exposure in hopes of large gains, without any built-in income or return mechanism.

For example, a portfolio packed with growth mutual funds or tech-heavy stocks might look strong on paper, but if those assets aren’t generating real income, then you’re relying entirely on market timing and volatility. That’s not a sustainable strategy for retirement income.

In one case, a client of ours held a 401(k) with several growth stocks and mutual funds, yet none of those assets provided reinvestable income. When retirement hit, the portfolio’s lack of yield left them vulnerable. By contrast, a portfolio with structured income products generating even a conservative 6–8% annual return can create a more stable, compoundable income stream—one that can support your lifestyle with much less stress.

The Silent Wealth Killer: Fees

Compounding doesn’t only depend on reinvestment—it depends on retaining as much of your return as possible. That’s why excessive fees can be so damaging.

Let’s look at the numbers: A $1.5 million portfolio with an annual 2% advisory or fund fee will lose over $331,000 in potential earnings over a 10-year period. That’s not just a minor expense—it’s a major wealth leak. Fees siphon off returns that could otherwise be compounding for your benefit.

At Agemy Financial Strategies, we believe in transparent, fiduciary-based guidance. We don’t believe in paying middlemen, hidden fees, or cookie-cutter portfolios that don’t serve your best interests.

Compound Interest ≠ Growth Alone

One of the most common misconceptions we hear is the belief that growth is the same as compounding. But here’s the truth: Growth can occur without compounding, and compounding can occur without explosive growth.

Owning a stock that doubles in price may seem like a big win, but unless you’re capturing consistent dividends or generating reinvestable returns, that “growth” is fleeting. Real compounding happens when income is systematically put back to work, over and over again.

Ask yourself:

Protecting Your “Pile”: Beyond Compounding

At Agemy Financial Strategies, we often talk about “protecting your pile”—and we don’t mean hiding it under a mattress or stuffing it in a low-yield savings account. True protection is about making your money work smarter, not harder.

Additional strategies we help support you with include:

Remember: the goal isn’t to become ultra-conservative or fearful of investing. It’s to be strategic, measured, and intentional.

Watch the full show here.

The Retirement Shift: From Accumulation to Preservation + Income

Retirement is not just a date—it’s a transition. And that transition should reflect a significant shift in your investment mindset.

Where you once chased high returns, you now need to think about how to preserve your assets and generate income from them. Compound interest, when used effectively, allows you to maintain both goals: security and growth.

You’ve already climbed the mountain of accumulation. Now it’s time to descend safely, with a plan that doesn’t depend on hope, speculation, or volatility.

Final Thoughts: It’s Time to Be Prudent

We’re not saying you have to change your entire portfolio overnight. But we do believe this is a time to ask yourself tough questions:

  • Is your portfolio designed to compound and generate sustainable income?
  • Are you taking on risk without enough built-in return?
  • Are your fees eroding your long-term wealth?

At Agemy Financial Strategies, we help clients across Connecticut and Colorado build retirement strategies grounded in education, purpose, and clarity. If you’re ready to make smart decisions that prioritize your long-term success, we invite you to get a second opinion—because protecting your pile starts with understanding how compounding really works.

📞 Ready to Learn More?

It’s time to invest in income, not just growth.

More About Agemy Financial Strategies Can Help

At Agemy Financial Strategies, we believe your retirement strategy should be as unique as you are. Our team of fiduciaries works closely with pre-retirees and retirees to develop personalized, income-generating plans that harness the power of compound interest while minimizing unnecessary risk.

Here’s what sets us apart:

  • Income-First Planning: We focus on creating sustainable, tax-efficient income streams that continue to compound and grow—even in uncertain markets.
  • Fiduciary Approach: As fiduciaries, we are legally and ethically obligated to act in your best interest. That means no cookie-cutter portfolios or hidden agendas—just advice that puts your needs first.
  • Smart Risk Management: We help clients identify unnecessary “returnless risk” and shift their portfolios toward strategies that align with their lifestyle, goals, and risk tolerance.
  • Fee Transparency: We cut out expensive middlemen and mutual fund layers to help you keep more of what you’ve earned, allowing your money to truly compound.
  • Education & Empowerment: Whether you’re 50 or 75, our goal is to help you understand your plan, your options, and your income strategy. Because when you know better, you do better.

With offices in Connecticut and Colorado, our team is here to help you build a future rooted in clarity, confidence, and smart financial stewardship.

Frequently Asked Questions (FAQ)

Q1: What’s the difference between compound interest and simple interest?
A: Simple interest is calculated only on the principal amount you invest. Compound interest is calculated on the principal and the interest that accumulates over time, making it a powerful wealth-building tool, especially in retirement income strategies.

Q2: Can I still benefit from compound interest if I’m already retired?
A: Yes. While compounding works best over long timeframes, retirees can still benefit by using income-generating assets that reinvest earnings or provide steady cash flow. The key is having a plan designed around your timeline and needs.

Q3: What kinds of investments support compound interest?
A: Investments that pay recurring income, such as dividend stocks, bonds, structured notes, etc., allow your earnings to be reinvested and compounded. Growth-only assets like non-dividend stocks may not offer the same compounding benefit unless actively managed.

Q4: Are high fees really that damaging to my retirement portfolio?
A: Absolutely. Just a 2% annual fee on a $1.5 million portfolio can erode over $300,000 in potential earnings over 10 years due to lost compounding. Reducing costs and improving efficiency are key ways we help protect and grow your wealth.

Q5: How do I know if I need to make changes to my current retirement strategy?
A: If you haven’t reviewed your portfolio in the last 12 months, if your investments aren’t generating income, or if you’re unsure about the risks you’re taking, you likely need a second opinion. Agemy Financial Strategies offers complimentary reviews to help you assess whether your money is truly working for you.

Disclaimer: This content is for educational purposes only and should not be considered financial or investment advice. Please consult with the fiduciary advisors at Agemy Financial Strategies before making any investment decisions.

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Mid-Year Investment Review: Does Your Retirement Portfolio Need Adjusting?

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As we approach the halfway mark of 2025, it’s time to ask a crucial question: Is your investment portfolio still working in your favor—and are there hidden opportunities in today’s volatility that you may be overlooking? 

This year’s economic environment remains a complex rollercoaster. Core inflation—which excludes food and energy—measured 2.8% year-over-year in April, matching expectations and staying well above the Federal Reserve’s 2% target. 

On a monthly basis, core CPI rose 0.2% in April, a slight uptick from March’s 0.1% but slower than the anticipated 0.3% climb. As a result, the Fed continues to hold interest rates at a 15-year high (4.25%–4.50%), with no rate cuts expected until 2026. 

While the job market remains relatively strong, consumer confidence is weakening and corporate earnings are showing signs of strain. GDP growth forecasts vary widely—Goldman Sachs projects just 1.0% growth for Q4, while the IMF pegs annual growth closer to 1.8%. 

Ongoing geopolitical tensions, trade disruptions, and the looming 2026 expiration of key tax provisions are adding pressure, particularly for high-net-worth individuals. In this backdrop of elevated rates, volatile markets, and shifting tax policy, a mid-year portfolio review isn’t just smart—it’s essential.

With interest rates high, markets jittery, and tax rules poised for change, now is the time to reassess your portfolio strategy.

Understanding the Current Economic Climate in 2025

The first half of 2025 has been anything but predictable. Investors are navigating a patchwork of mixed signals across sectors and asset classes. While some areas of the economy are holding firm, others are flashing signs of weakness.

Key Economic Indicators to Watch:

  • Inflation: Although headline inflation has moderated, core inflation remains elevated, keeping borrowing costs high and squeezing retirement budgets.
  • Interest Rates: The Federal Reserve’s benchmark rate remains at a 15-year high, affecting everything from bond yields to real estate values. Fed Chair Powell recently stated that cuts may not come until early 2026, depending on data trends.
  • Equity Markets: Stock indices are volatile, with tech and AI-driven sectors recovering while defensive stocks lag. Many analysts anticipate continued swings due to political uncertainty and global supply chain pressures.
  • Consumer Trends: Credit card delinquencies are rising, savings rates are down, and retail spending has slowed—signals that consumer fatigue is setting in.
  • Geopolitical Uncertainty: Ongoing tensions in the South China Sea, instability in the Middle East, and new EU trade tariffs have all contributed to risk-off sentiment across global markets.

Given these crosscurrents, a mid-year portfolio check isn’t just recommended—it’s essential. Adjusting now could help protect your long-term strategy from near-term shocks.

Inflation and Investment Opportunities: Navigating the Landscape

While economic uncertainty and geopolitical tensions may seem like red flags, they can also create compelling opportunities for savvy investors. Volatility often leads to market dislocations—where quality assets become undervalued due to fear or short-term pressure. 

In these moments, disciplined investors with a long-term perspective can capitalize on attractive entry points, rebalance portfolios strategically, and harvest tax losses to improve after-tax returns. 

Elevated interest rates also mean more competitive yields in fixed income markets, offering new avenues for income generation and portfolio diversification. Rather than retreating in the face of uncertainty, investors can use this period to make proactive, informed decisions that may strengthen their financial position for the years ahead.

While inflation can impact the economy and asset values in complex ways, historical trends and economic theory provide useful context. Inflation tends to have the greatest effect on fixed-rate debt instruments, as rising prices can erode the purchasing power of both interest payments and the principal. When the inflation rate outpaces the nominal interest rate, the resulting “real rate” may be negative—meaning the value of returns is diminished when adjusted for inflation.

Did You Know? Long-term fixed-rate debt generally carries more inflation risk than short-term debt, since the erosion of value accumulates over a longer period.

Certain types of assets—particularly those with income streams or values that may adjust over time—have historically been more resilient during inflationary periods. Examples include real assets like rental properties with adjustable leases or infrastructure assets where fees may be indexed to inflation.

As always, it’s important to speak with a financial professional to evaluate how inflation considerations fit into your broader investment strategy.

Why You Need a Mid-Year Review

For investors approaching retirement with significant assets, your financial strategy isn’t just about returns—it’s about preservation, income generation, and tax efficiency.

A lot can happen in six months. Without a review, your portfolio could:

  • Drift from your original asset allocation
  • Miss opportunities for gains or tax savings
  • Expose you to unnecessary risk
  • Underperform relative to your income needs

If you haven’t reviewed your portfolio yet this year, now is the time.

Step-by-Step Mid-Year Investment Review Checklist

Here’s a quick reference guide to discuss with your advisor.

1. Reassess Your Financial Goals

Have your personal or family goals changed? Perhaps you’re considering early retirement, planning a home purchase, or funding a grandchild’s education.

Your investment strategy should reflect these updated goals. Consider adjusting timelines, savings targets, and risk tolerance accordingly.

2. Analyze Portfolio Performance

Review the year-to-date (YTD) performance of each asset class in your portfolio. Consider:

  • Are you outperforming or underperforming the benchmark?
  • What sectors are driving returns (or losses)?
  • Are international holdings pulling their weight?
  • Have dividends or interest payments met expectations?

Use performance data as a guide—but don’t chase returns. Strategic, goal-based investing should remain the focus.

3. Rebalance Asset Allocation

In volatile markets, some assets may rise or fall dramatically, throwing off your intended balance. Rebalancing can help keep your risk profile in check.

Common Allocation Drifts:

  • Overweight in U.S. equities due to strong tech performance
  • Underweight in international or emerging markets
  • Too much exposure to fixed income with low yields

Adjust your mix based on:

Strategic Moves to Consider for the Rest of 2025

1. Defensive Positioning in Uncertain Times

Many investors are moving toward defensive sectors like consumer staples, healthcare, and utilities. These sectors tend to hold value even during economic slowdowns.

2. Income-Producing Investments

Retirement requires predictable income. Evaluate opportunities in:

Diversifying income streams can reduce risk and help cover fixed expenses in retirement.

3. Tax-Loss Harvesting Opportunities

If certain positions are underperforming, now may be the time to sell them to offset capital gains. This strategy, known as tax-loss harvesting, can help reduce your taxable income.

Work with a fiduciary advisor who understands tax strategy to avoid wash-sale rules and time your moves appropriately.

4. Consider Roth Conversions

With current tax rates scheduled to sunset after 2025, Roth conversions are an increasingly popular move. Converting traditional IRA funds to a Roth IRA now may lock in lower taxes while providing tax-free income later.

This move can be particularly beneficial for wealthy investors in low-income years or those with large required minimum distributions (RMDs) on the horizon.

Anticipating RMDs and Retirement Income Planning

For investors aged 73 and older (or 75, depending on your birth year), required minimum distributions (RMDs) can significantly impact your tax bill. Even if you’re not yet taking RMDs, planning ahead can be crucial.

Strategies to Help Optimize RMDs:

Review your income needs and explore options that can help lower your tax burden without compromising your retirement lifestyle.

Review Estate and Legacy Plans

Your investments aren’t just about your retirement—they’re about your legacy. Now is a smart time to review:

A proactive approach can help reduce estate taxes and help ensure your wishes are fulfilled.

Don’t Forget About Inflation-Proofing

Inflation silently erodes purchasing power. Even with higher rates, today’s dollars won’t go as far in 10 or 20 years.

Ways to Hedge Against Inflation:

Talk to your advisor about incorporating inflation-resistant assets in your portfolio.

Questions to Ask Your Advisor at Mid-Year

  1. What changes should I consider based on current economic forecasts?
  2. How can I better align my portfolio with my retirement timeline?
  3. Are my investments structured for tax efficiency?
  4. What are the risks in my current strategy?
  5. How can I generate more income without adding unnecessary risk?
  6. Am I on track to meet my estate planning goals?

How Agemy Financial Strategies Can Help

At Agemy Financial Strategies, we understand that navigating the financial landscape near retirement can be complex. Our fiduciary advisors help high-net-worth individuals create customized strategies based on:

  • Your long-term goals
  • Tax considerations
  • Income planning
  • Estate and legacy needs

We go beyond portfolio performance. Our mission is to give you confidence, clarity, and control over your financial future.

Now is the time to schedule your mid-year investment review. The second half of 2025 could bring more changes, and your plan should be ready.

Final Thoughts: Don’t Leave Your Retirement to Chance

Market uncertainty is the new normal. But that doesn’t mean your financial future needs to feel unstable. A mid-year portfolio review offers clarity and control in an ever-changing world.

Adjustments made today can make a significant difference tomorrow.

You’ve built your wealth—now let’s protect it.

📞 Schedule your complimentary portfolio review today with Agemy Financial Strategies.

🗓️ Don’t wait—prepare now for the future you deserve.

Frequently Asked Questions

  1. How often should I review my investment portfolio?

At a minimum, we recommend reviewing your portfolio twice a year, mid-year and year-end. However, life events, market changes, or economic shifts may warrant more frequent reviews to stay aligned with your goals.

  1. What signs indicate I should rebalance my portfolio?

If your asset allocation has drifted significantly from your original targets, due to market gains or losses, or your risk tolerance or financial goals have changed, it’s likely time to rebalance.

  1. What are the benefits of a Roth conversion in 2025?

With current tax rates set to expire after 2025, converting traditional retirement assets to a Roth IRA now may help lock in lower taxes. This strategy can also reduce your future RMDs and provide tax-free income in retirement.

  1. Is market volatility a reason to adjust my retirement strategy?

Not always. Temporary volatility doesn’t necessarily require a change. However, prolonged or structural market shifts may call for defensive adjustments, diversification, or an income-focused strategy—especially for retirees.

  1. How can Agemy Financial Strategies help with my mid-year review?

Our fiduciary team offers personalized mid-year investment reviews, helping you assess your portfolio’s performance, uncover hidden risks, optimize for taxes, and help ensure your financial strategy is on track for retirement success.

Disclaimer: This content is for educational purposes only and should not be considered financial or investment advice. Please consult with the fiduciary advisors at Agemy Financial Strategies before making any investment decisions.

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How to Protect Your Real Estate and Optimize Income In Turbulent Times

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With today’s economic volatility—rising interest rates, inflation pressures, tariff rollercoasters, and shifting housing demands—it’s more important than ever for retirees to not only generate income from real estate but also protect those investments against downside risk. 

Here’s how to approach real estate strategically in turbulent times.

Understanding the Real Estate Landscape in Connecticut and Colorado

Connecticut

Despite broader market uncertainty, Connecticut has remained relatively stable. In 2025, regions like Greater Hartford and New Haven performed well, with Hartford ranked among the top 50 U.S. metros for growth potential by Zillow.

With an average home sale price of $414,183 (a 5.1% YOY increase), retirees may find solid investment opportunities, especially in suburban communities where remote work and space are still in demand. However, protecting those assets through diversified approaches and risk management is key.

Colorado

Colorado continues to outperform national trends. Cities like Colorado Springs are projected to see a 27.1% increase in home sales in 2025. With a strong job market, expanding tech sector, and high quality of life, the state remains a magnet for population growth.

Yet, rapid appreciation also brings risk—market corrections, regulatory shifts, and rising property taxes can affect your bottom line. Diversifying income sources and proactively managing assets becomes critical in times of market instability.

Connecticut

Connecticut’s real estate market has demonstrated remarkable resilience, even amid broader economic fluctuations. In 2025, the Greater Hartford metropolitan area, including New Haven, became one of the state’s top-performing regions, with Zillow naming Hartford among the top 50 U.S. metros for growth potential.

The average sale price in Connecticut stood at approximately $407,391, reflecting a 5.8% year-over-year increase in 2025. However, affordability remains a concern, especially with the state’s average household income of $130,601. As a result, retirees need to consider strategic investment approaches, particularly in suburban areas where the demand for larger homes is increasing.

Colorado

Colorado’s real estate market has grown substantially, particularly in cities like Colorado Springs and Denver. In 2025, Colorado Springs experienced a 27.1% year-over-year increase in home sales. The combination of economic stability, robust job markets, and a growing population has made the state’s real estate market an attractive prospect for retirees. Whether it’s residential or commercial properties, Colorado’s diverse economy and strong demand for housing make it an ideal location for income-generating real estate investments.

How Tariffs Affect Real Estate Investments 

Tariffs may seem like a distant issue for real estate investors, but their ripple effects can have real consequences. When new tariffs are imposed—especially on imported construction materials like steel, lumber, aluminum, and appliances—the cost of development and property maintenance can rise significantly. This affects not only builders and developers but also income property owners who may face higher renovation and repair costs, ultimately squeezing profit margins.

In times of economic uncertainty, tariff-driven inflation can also impact consumer confidence and interest rates, leading to slower growth in property values or a cooling rental market. For real estate investors, this makes it even more important to focus on efficient property management, secure stable tenant leases, and explore tax-advantaged strategies like 1031 exchanges or cost segregation.

Proactive financial planning and a diversified investment approach can help protect your portfolio and preserve income—even when the broader economy faces headwinds.

How to Help Protect & Optimize Your Real Estate Income

1. Create a Defensive Rental Strategy

Rental income remains one of the most reliable ways to earn from real estate, but retirees must defend against vacancies and declining rents during downturns.

Protective Actions:

  • Target stable markets like suburbs with consistent rental demand.
  • Screen tenants rigorously to help reduce turnover.
  • Include inflation-adjusted rent clauses in new leases.
  • Maintain liquidity for emergency repairs or vacancies.

2. Embrace Short-Term Rentals with Built-In Flexibility

Vacation rentals can generate higher income, but also face more volatility. During economic downturns, tourism may drop or regulations may tighten.

Protective Actions:

  • Use dynamic pricing tools to help optimize occupancy.
  • Invest in markets with dual appeal (business + leisure travelers).
  • Maintain necessary permits and insurance coverage.
  • Be prepared to pivot properties into long-term rentals if needed.

3. Diversify with Real Estate Investment Trusts (REITs)

REITs offer exposure to real estate with built-in diversification, which can help buffer retirees against market turbulence without direct property ownership.

Protective Actions:

  • Focus on REITs in resilient sectors (e.g., healthcare, logistics).
  • Regularly reassess holdings to reflect changing risk tolerance.
  • Consult with a fiduciary to review dividend yield vs. market risk.

4. Participate in Syndications That Prioritize Capital Preservation

Real estate syndications provide access to large-scale properties with shared risk. In turbulent times, it can be beneficial to choose conservative, income-focused projects.

Protective Actions:

  • Vet sponsors’ history of navigating downturns.
  • Consider opting for cash-flowing properties over speculative developments.
  • Ensure there’s a clear exit strategy and downside protections.

5. Use Cost Segregation and Tax Strategies to Boost After-Tax Income

In uncertain markets, improving cash flow through tax savings can be just as powerful as increasing rent.

Protective Actions:

  • Use cost segregation studies to help accelerate depreciation.
  • Stay updated on IRS changes that may impact deductions.
  • Align tax strategies with overall retirement income planning.
  • Aligning Real Estate Strategies with Retirement Goals

To help optimize your real estate holdings in volatile times, your approach must go beyond buying and holding. It’s about aligning cash flow, capital preservation, and flexibility with your retirement lifestyle.

Key Focus Areas:

  • Income Stability: Seek assets that generate consistent returns, even in down markets.
  • Risk Reduction: Diversify across property types, geographies, and ownership models.
  • Liquidity Management: Maintain enough cash to weather rental gaps or major expenses.

How Agemy Financial Strategies Can Help

In a changing market, working with a fiduciary partner like Agemy Financial Strategies can help provide the stability and knowledge you need.

  • Real Estate Income Optimization: We help evaluate your current holdings and identify opportunities for income growth and downside protection.
  • Market-Aware Investment Strategies: We help tailor strategies for turbulent markets—whether it’s shifting into REITs, diversifying rentals, or exiting high-risk assets.
  • Tax & Estate Planning: We guide you through depreciation tactics, 1031 exchanges, and wealth transfer strategies to help protect your legacy.
  • Holistic Retirement Planning: Real estate isn’t a siloed asset—it’s part of your bigger retirement picture. We help you build a resilient plan with real estate as a core income engine.

Final Thoughts

From Connecticut’s steady suburbs to Colorado’s booming cities, real estate remains a powerful tool for retirement income, even in turbulent times. But the key to success is adaptability and risk management.

By working with Agemy Financial Strategies, you gain a partner who understands both the potential and the pitfalls of real estate investing—and knows how to navigate them with your retirement goals in mind.

Contact us today to schedule your complimentary consultation and learn how to protect your real estate while helping maximize income for the years ahead.

Frequently Asked Questions (FAQs)

1. How can I help protect my real estate investments during a recession?

Focus on diversification, maintain cash reserves, and prioritize properties with steady demand. Consulting a fiduciary may help with building a more resilient portfolio strategy.

2. Is now a good time to buy real estate in Connecticut or Colorado?

Both markets offer opportunities, but timing depends on interest rates, local trends, and your financial goals. A fiduciary advisor can help you evaluate current conditions.

3. How can I boost income from underperforming properties?

Consider rent increases, short-term rentals, tax strategies, or upgrading property features to attract higher-paying tenants.

4. Should I invest in REITs instead of physical property during uncertain times?

REITs offer liquidity and built-in diversification, making them attractive for retirees seeking lower-risk exposure.

5. What’s the role of estate planning in protecting real estate assets?

Estate planning can help ensure your real estate transfers smoothly to heirs, reduce tax burdens, and align with your legacy goals. Agemy Financial Strategies can help create a comprehensive estate strategy.

Disclaimer: This content is for informational and educational purposes only and should not be construed as financial, legal, or tax advice. Investment strategies, including real estate, involve risk and may not be suitable for everyone. For a full understanding of any investment strategy’s risks and potential rewards, we encourage you to schedule a complimentary consultation with one of our fiduciary advisors.

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Turning 65 In 2025? Here’s How To Plan For A Confident Retirement

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The retirement landscape is shifting dramatically as the largest wave of Americans in history reaches the traditional retirement age. Known as the “Peak 65” generation, this group represents a pivotal moment in retirement planning. 

In 2025,an average of 11,400 Americans will turn 65 each day, setting a historic milestone with 4.18 million people reaching the traditional retirement age within the year—the highest on record. With economic uncertainty and evolving retirement benefits, it is more critical than ever for those approaching retirement to have a solid financial plan. Here are the essential steps for navigating the journey to financial security in retirement.

Understanding ‘Peak 65’

“Peak 65” marks the age when many individuals begin considering retirement or transitioning from full-time work to exploring new opportunities. As expected, the Alliance for Lifetime Income (ALI) emphasizes retirement income, offering insightful statistics for those approaching this pivotal stage, known as the Peak Zone:

  • Two-thirds of Peak Boomers will face challenges maintaining their lifestyles in retirement due to their assets and life expectancy of 20 or more years.
  • More than 52.5% have assets of $250,000 or less, making it likely they will exhaust their savings and rely primarily on Social Security for income.
  • An additional 14.6% have assets of $500,000 or less, meaning nearly two-thirds of retirees may struggle to meet their financial needs.
  • According to the Social Security Administration, Social Security is designed to replace approximately 40% of a person’s annual pre-retirement income.

This wave of upcoming retirees is reshaping the retirement planning landscape and presents the task of protecting wealth for an extended duration. One of the positive aspects of ‘Peak 65’ is that it prompts individuals to reassess their retirement savings, investments, and overall financial readiness for retirement. This demographic shift carries profound implications for the wealth management sector.

As an investor approaching retirement age, your retirement plan must adapt to this new reality to effectively meet the needs of today’s and tomorrow’s retirees. It goes beyond simply having enough to retire. The focus is sustainable retirement funds, allowing individuals to fulfill their aspirations of leaving behind a meaningful legacy. Let’s explore how wealth management can play a pivotal role in achieving these goals.

Having A Wealth Preservation Strategy

Financial readiness becomes paramount as individuals approach the ‘Peak 65’ milestone. Those nearing retirement must meticulously evaluate their retirement income sources to gauge their readiness for this stage of life. This requires the adoption of a wealth preservation strategy.

While wealth growth focuses on accumulating more assets, wealth preservation centers on protecting wealth against erosion. Various investment strategies are tailored to help secure wealth over the long term. Instead of putting all your eggs in one basket, diversifying your investment portfolio across various asset classes can help spread risk and potentially enhance returns.

Consider a mix of stocks, bonds, real estate, and alternative investments. By embracing a diversified investment approach and incorporating alternative investments to preserve wealth, individuals can help protect assets from significant declines in value.

Having An Estate Plan

For many retirees, helping ensure a lasting financial legacy for their children and grandchildren is a top priority. As the Baby Boomer generation ages, they prepare to pass their wealth to the next generation in significant ways. Here’s how:

  • Approximately $124 trillion in wealth is expected to be transferred by 2048.
  • $105 trillion will be inherited by heirs, while $18 trillion will be donated to charity.
  • Nearly $100 trillion will come from Baby Boomers and older generations, accounting for 81% of all wealth transfers.
  • More than 50% of the total transfers ($62 trillion) will come from high-net-worth and ultra-high-net-worth (HNWI/UHNW) individuals, representing just 2% of all households.

With such vast wealth in motion, having a well-structured estate plan is critical to helping ensure a smooth and efficient wealth transfer. A thorough plan allows you to manage your assets during your lifetime while ensuring they are distributed according to your wishes after your passing.

Beyond financial considerations, an estate plan can also outline your healthcare preferences, allowing your wishes to be honored even if you cannot communicate them yourself. Additionally, it can designate a trusted individual to help manage your financial affairs if you cannot do so.

At Agemy Financial Strategies, our fiduciary advisors are here to help you navigate the complexities of estate planning. We work with you to develop a customized plan that includes asset distribution strategies, tax minimization solutions, and the right trust structures to fit your unique needs. Taking these steps helps your wealth endure and effectively serve future generations.

Healthcare and Long-Term Care Considerations

With ‘Peak 65″ comes an increase in people needing long-term care. The cost of long-term care can be substantial, and it’s not covered by traditional health insurance or Medicare. On average, the annual nursing home cost is $110,360 for a semi-private room or $123,913 for a private room.

It’s crucial to remember that nursing home costs vary significantly by location, so it’s important to check specific rates in your area. The financial commitment associated with long-term care necessitates careful consideration and planning to help ensure the well-being of your loved ones and your financial stability.

Planning for long-term care needs is essential to help ensure that retirees have the necessary resources to receive the care they require. This can involve creating a financial plan, researching care options, and discussing wishes with loved ones. Working with a fiduciary can help you plan for these costs.

How Team Agemy Can Help

Navigating the complexities of retirement planning, especially during ‘Peak 65’, can be daunting. Working with a fiduciary can be useful for Americans transitioning to their golden years. Moreover, fiduciary advisors must act in their clients’ best interests, providing objective advice.

For over 35 years, Agemy Financial Strategies has been dedicated to empowering retirees and pre-retirees through 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 that is 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 you remain in harmony with your evolving circumstances.

Our top goal is to empower clients to make informed decisions and confidently navigate the financial landscape’s complexities. Our team takes the time to understand each client’s circumstances and long-term objectives, helping to ensure that their retirement plans align with their goals.

Final Thoughts

The Peak 65 generation is reshaping retirement. With careful planning and proactive strategies, today’s retirees can achieve financial security and peace of mind. Agemy Financial Strategies understands the unique challenges associated with this milestone. As a Connecticut-based financial firm with offices in Denver, Colorado, we are committed to helping retirees navigate the complexities of financial planning.

Whether you’re preparing for retirement, managing your wealth, planning your legacy, or simply seeking guidance for a smooth transition, we’re here to support you every step of the way. If you’re turning 65 and wondering what’s next, let’s start the conversation today.

Contact us today to begin your journey toward a confident retirement.

Peak 65 FAQs

1. What does “Peak 65” mean?

Peak 65 refers to the unprecedented number of Americans turning 65 in 2025. With approximately 11,400 people reaching this milestone each day, this demographic shift has major implications for retirement planning, healthcare, and Social Security funding.

2. What are the biggest financial risks for retirees in 2025?

The biggest financial risks include longevity, inflation, market volatility, and healthcare expenses. Inflation continues to raise the cost of goods and services, reducing purchasing power over time. Market fluctuations can impact investment returns, making retirement income less predictable. Additionally, healthcare costs, including medical care, prescriptions, and long-term care, remain a significant concern.

3. Are there strategies to help retirement savings last?

It’s important to have multiple sources of guaranteed income. Certain annuities can provide a potential income stream regardless of market conditions. Dividend-paying investments, such as certain stocks or funds, can create a passive income stream. Roth IRA conversions may help minimize future tax burdens on withdrawals, helping ensure more of your savings can be used for retirement needs.

4. What should I consider when planning for healthcare in retirement?

When planning for healthcare in retirement, it is important to understand Medicare enrollment deadlines and choose the right plan to avoid coverage gaps. Long-term care insurance can help cover expenses for assisted living or nursing homes. Health Savings Accounts (HSAs) provide a tax-advantaged way to save for medical expenses. Additionally, supplemental insurance, such as Medigap or Medicare Advantage plans, can help cover costs not included in traditional Medicare.

5. How can a financial advisor help Peak 65 retirees?

A fiduciary financial advisor can help Peak 65 retirees create a sustainable income plan to help ensure financial security throughout retirement. They can assist in minimizing taxes on withdrawals from retirement accounts and adjusting investments to reduce risk while maintaining proper diversification. A fiduciary advisor can also help develop a healthcare strategy to cover medical and long-term care expenses, helping retirees have a comprehensive plan for the future.

6. What’s the best way to get started with retirement planning?

The best way to start retirement planning is to assess your current financial situation and establish clear goals. Evaluate your assets, including savings, pensions, and other income sources. Estimate future expenses for daily living, healthcare, travel, and unexpected costs. Determine if there are income gaps that need to be addressed. Explore investment options, such as annuities, bonds, and dividend-paying stocks, to create a balanced financial plan. Meeting with a fiduciary advisor is critical to get guidance tailored to your retirement needs.

Disclaimer: The information provided in this article is for educational and informational purposes only and should not be considered financial, tax, or legal advice. Individual financial situations vary, and readers are encouraged to seek personalized guidance from the qualified financial professionals at Agemy Financial Strategies before making investment decisions.

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Spring Cleaning Your Finances: Get Your Retirement Plan in Order

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Just as you declutter your living space, organizing your financial life can help you achieve long-term success in retirement planning. More than half (57 percent) of Americans working full-time, part-time, or temporarily unemployed feel behind on their retirement savings.

If that sounds familiar, now is the time to take action. Spring cleaning your finances can help eliminate inefficiencies, optimize your savings, and help your retirement plan align with your long-term goals. In this blog, we’ll cover three essential steps to refresh your financial strategy and get your retirement plan in order. Here’s what you need to know.

1. Reassess Your Retirement Goals and Adjust Accordingly

Much like tidying up your home, reviewing your retirement plan lets you take stock of what’s working and what needs to change. Your financial situation, priorities, and economic landscape may have shifted since you last checked in. Here’s a look at some key actions you can take:

  • Review Your Retirement Timeline: Are you still on track to retire when you originally planned? If not, what adjustments need to be made?
  • Reevaluate Your Savings: With inflation and market fluctuations, your savings might need an increase to meet your target nest egg. Consider reassessing how much you contribute to your retirement accounts, such as 401(k)s, IRAs, and other long-term savings vehicles.
  • Assess Your Expected Retirement Expenses: Make sure your retirement budget reflects current lifestyle changes, healthcare needs, and potential long-term care costs.
  • Check for Any Life Changes: Marriage, divorce, a new child, or relocation can significantly impact your financial outlook. Update your plan accordingly.

Your strategy should be tailored to your unique financial situation, lifestyle goals, and tax considerations. A one-size-fits-all approach may not maximize your retirement income or minimize your tax burden. Consider working with a fiduciary to help develop a personalized retirement strategy that aligns with your needs.

2. Organize and Optimize Your Retirement Accounts 

Like cleaning out old paperwork or reorganizing your closet, decluttering your financial accounts can help streamline your retirement strategy. Many individuals accumulate multiple 401(k) accounts from past employers or hold various investment accounts that may not work together efficiently. Here are some key actions you can take:

  • Consolidate Old Retirement Accounts: If you have 401(k)s or other retirement accounts from previous employers, consider rolling them over into an IRA or consolidating them where appropriate.
  • Review Your Asset Allocation: Your investment mix can drift from your intended strategy over time. Check your asset allocation and rebalance it if necessary to align with your risk tolerance and time horizon.
  • Catch-up Contributions: If you’re 50 or older, don’t forget about catch-up contributions! For 2025, individuals can contribute $31,000, which includes a $23,500 base contribution limit and a $7,500 catch-up contribution—unchanged from 2024.
  • Update Your Beneficiaries: If you have experienced major life changes, help ensure your retirement accounts and life insurance policies have the correct beneficiary designations.

3. Tidy Up Your Tax Strategy and Estate Plan

A well-organized retirement plan isn’t just about saving—it’s also about ensuring tax efficiency and proper estate planning so you can maximize your legacy.

  • Review Tax-Efficient Withdrawal Strategies: How and when you withdraw funds from different accounts can significantly impact your tax liability. Consider strategies such as Roth conversions or tax-efficient distribution plans.
  • Evaluate Required Minimum Distributions (RMDs): If you’re approaching age 73, RMDs will be required from your tax-deferred accounts. Consider making a plan to avoid unnecessary tax penalties.
  • Review Your Estate Plan: Confirm that your estate documents are current. This includes your will, power of attorney, healthcare directives, and any trust arrangements that help ensure your assets are distributed according to your wishes.
  • Check Your Insurance Coverage: Long-term care insurance, life insurance, and disability insurance should all be evaluated to see if they align with your current needs.

Tax planning should be a year-round effort, not just something to consider during tax season. Reviewing your financial plan now can help you proactively minimize tax burdens in retirement.

Work With a Fiduciary Advisor

At Agemy Financial Strategies, we understand that retirement planning is more than just saving money—it’s about creating a personalized financial roadmap that helps you feel confident about your future. Our team focuses on helping high-net-worth individuals and soon-to-be retirees navigate the complexities of retirement, tax efficiency, and wealth preservation.

Here’s how we can assist you in spring cleaning your finances and optimizing your retirement plan:

  • Comprehensive Retirement Planning: We help you assess your current financial situation, set realistic goals, and develop strategies tailored to your unique needs.
  • Investment and Wealth Management: Our fiduciary approach helps your investment portfolio align with your risk tolerance, retirement timeline, and financial objectives.
  • Tax-Efficient Retirement Strategies: From Roth conversion planning to tax-efficient withdrawal sequencing, we help you create a strategy that minimizes unnecessary tax burdens and preserves more of your hard-earned wealth.
  • Estate and Legacy Planning: Our award-winning team helps ensure your assets are structured properly to protect your legacy for future generations.
  • Ongoing Guidance and Adjustments: Financial planning isn’t a one-time event—it requires continuous monitoring and adjustments. We stay with you every step of the way, helping you navigate life changes, market shifts, and new opportunities.

Final Thoughts

Spring cleaning isn’t just for your home—it’s an opportunity to refresh, refine, and refocus your retirement plan to provide financial stability in the years ahead. If you’re ready to refresh your retirement plan and help ensure you’re on track for long-term success, Agemy Financial Strategies is here to help. Whether planning for retirement, building generational wealth, or navigating life’s uncertainties, we’re here to provide guidance you can trust.

Contact us today to schedule a consultation and start your journey toward financial confidence.

Frequently Asked Questions (FAQs)

1. How often should I review my retirement plan?
Reviewing your retirement plan at least once a year or when you experience a significant life event, such as marriage, divorce, career change, or childbirth, is a good idea. Agemy Financial Strategies provides personalized financial reviews to help you stay on track and adjust your plan as your needs evolve.

2. What’s the best way to consolidate old retirement accounts?
Rolling over old 401(k)s into a Rollover IRA is a common approach. This can simplify account management, potentially lower fees, and offer more investment options. However, always consider your specific financial situation before making a decision. Our team can help assess your options and guide you through a tax-efficient rollover strategy that aligns with your long-term goals.

3. How can I reduce taxes on my retirement income?
Minimizing taxes in retirement is key to preserving your wealth and maximizing your income. Agemy Financial Strategies focuses on tax-efficient retirement planning, helping you implement smart strategies to keep more of what you’ve earned. Some effective approaches include:

  • Roth conversions: If your financial situation allows it, converting pre-tax retirement savings to a Roth IRA can provide tax-free income later.
  • Tax-efficient withdrawals: Strategically withdrawing from taxable, tax-deferred, and tax-free accounts in the right order can help reduce your lifetime tax liability.
  • Charitable giving strategies: Utilizing options like Qualified Charitable Distributions (QCDs) from an IRA can allow you to give back while lowering your taxable income.

4. What should I do if I’m behind on retirement savings?
Falling behind on retirement savings doesn’t mean you can’t catch up. At Agemy Financial Strategies, we develop personalized strategies to help you boost your savings, optimize investments, and build a more secure financial future. Key steps to consider include:

5. Do I need an estate plan?
A basic estate plan, including a will and power of attorney, helps ensure that your assets are distributed according to your wishes and that someone you trust can decide on your behalf if necessary. Agemy Financial Strategies has decades of experience in estate planning to help protect your financial legacy and align with your overall retirement plan.

Disclaimer: This content is for informational purposes only and should not be considered financial, investment, tax, or legal advice. Please consult with the qualified financial professionals at Agemy Financial Strategies before making any investment or financial decisions.

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Five Star Wealth Manager Award Winners

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Why Choose Agemy Financial Strategies?

Your Trusted Fiduciary Financial Advisors and Wealth Managers

Finding a financial advisor who truly has your best interests at heart is no small decision. At Agemy Financial Strategies, we understand the weight of this choice and are here to provide the guidance, education, and expertise you need to confidently navigate your financial journey.

For over 35 years, Agemy Financial Strategies has been dedicated to empowering retirees and pre-retirees through comprehensive services like retirement planning, wealth management, and legacy planning. Our commitment to excellence has earned us the prestigious Five Star Wealth Manager Award for 14 consecutive years, —  2012, 2013, 2014, 2015, 2016, 2017, 2018, 2019, 2020, 2021, 2022, 2023, and now 2024 — a testament to our dedication to client success.

What is the Five Star Wealth Manager Award?

The Five Star Wealth Manager Award, administered by Crescendo Business Services, LLC (dba Five Star Professional), is awarded based on a rigorous evaluation of 10 objective criteria. These include:

  • Credentialed and actively employed as a registered investment advisor or representative for at least five years.
  • High client retention rates over one and five years.
  • Favorable regulatory and complaint history review.
  • Number of households served and assets managed.
  • Professional designations and education.

Out of 3,710 Connecticut-area wealth managers considered in 2024, only 282 (8%) met the qualifications for this exclusive recognition. The award is not indicative of future performance but highlights consistent excellence in service, ethics, and dedication to clients.

Meet the Agemy Team: Experience You Can Trust

Andrew A. Agemy, MRFC®

Andrew Agemy has been honored with the Five Star Wealth Manager Award for 14 consecutive years, as seen in Connecticut Magazine, FORTUNE, and more. With over three decades of experience, Andrew is committed to educating his clients through workshops and webinars, ensuring they make informed financial decisions. His A+ rating with the Better Business Bureau and the National Ethics Association underscores his dedication to integrity and excellence.

Andrew’s philosophy is simple: a financially educated retiree is a happy retiree. He takes pride in helping clients build dependable income strategies that ensure peace of mind during retirement.

Daniel J. Agemy, CPM®, RFC®

As a second-generation wealth manager, Daniel Agemy brings over a decade of experience to Agemy Financial Strategies. Specializing in custom retirement plans, Daniel combines a passion for education with innovative strategies to help clients achieve their dream retirements.

A recipient of the Certified Portfolio Manager (CPM®) designation from Columbia University, Daniel is committed to staying ahead of industry trends, ensuring his clients benefit from cutting-edge strategies and solutions.

Why Work With Agemy Financial Strategies?

When you choose Agemy Financial Strategies, you’re partnering with a team that prioritizes:

  • Education: Empowering you to make informed financial decisions through radio shows and YouTube podcasts, free online resources, events, and more.
  • Purpose-Driven Investing: Aligning your investments with your personal goals.
  • Generational Wealth Transfer: Preserving and growing wealth for future generations.
  • Dependable Income Strategies: Creating “retirement paychecks” that provide stability regardless of market conditions.

Our mission is to give you confidence in your financial future by crafting custom, robust portfolios designed to generate income and growth.

What Sets Us Apart?

  1. Award-Winning Advisors: Andrew and Daniel Agemy are not just experienced; they’re recognized leaders in the industry with a track record of excellence.
  2. Client-Centric Approach: We listen, understand your goals, and tailor strategies that meet your unique needs.
  3. Commitment to Excellence: With 35 years of experience, we’ve helped countless clients achieve financial peace of mind.

Your Financial Journey Starts Here

At Agemy Financial Strategies, we know that your assets are too important to trust with anything less than Five Star excellence. From retirement planning to wealth management, our award-winning team is here to guide you every step of the way.

Take the first step toward financial freedom and security with Agemy Financial Strategies. Visit agemy.com today to schedule your consultation.

Client Testimonials and Success Stories

“Agemy Financial Strategies gave me the confidence to retire early. Their team walked me through every detail, ensuring I had a plan that worked for me.” – A Satisfied Client

“Andrew and Daniel’s commitment to education and personalized service sets them apart. I’ve never felt more informed or secure about my financial future.” – Long-Time Client

Closing Thoughts

Choosing a fiduciary financial advisor is one of the most important decisions you’ll make for your future. At Agemy Financial Strategies, we combine decades of experience with a deep commitment to helping clients thrive. Whether you’re planning for retirement, building generational wealth, or navigating life’s uncertainties, we’re here to provide guidance you can trust.

Let’s make your financial dreams a reality—because your future deserves nothing less than Five Stars.

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Building Sustainable Income for a Long Retirement

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Longevity is rewriting the retirement rulebook. With Americans reaching age 65 now expecting to live an additional 20 years on average, and nearly one in seven making it past 95, the need for a reliable, long-lasting income has never been more critical. 

Building wealth and creating a steady income stream to support you through the decades ahead becomes essential as retirement approaches. In this blog, we will explore effective income strategies and provide valuable insights for those looking to create a financial foundation that endures the test of time. Here’s what you need to know.

Why Income-Generating Investments Are Crucial for a Long Retirement

As life expectancy rises, retirement planning must adapt to ensure financial resources endure. Traditional savings alone may fall short of keeping up with inflation and unexpected expenses, making it crucial to incorporate income-generating investments. Designed to provide regular cash flow rather than solely relying on appreciation, these investments play a vital role in maintaining financial stability.

By including income-generating assets, investors nearing retirement can sustain their lifestyle and cover ongoing expenses without eroding their principal savings. Here are some common investment vehicles that can help generate steady income:

  • Bonds and Bond Funds
  • Dividend-Paying Stocks
  • Real Estate Investments
  • Certain Annuities

Building a sustainable portfolio designed for consistent income can help you gain peace of mind, knowing you have the financial support to handle a longer retirement and the unexpected costs that may come with it. Working with an advisor can help you select the right investment based on your unique financial situation.

Building a Diversified Portfolio for Stability

Diversification is key to helping reduce risk while generating income from investments. By spreading investments across different asset classes—such as stocks, bonds, real estate, and alternative assets—investors can help protect themselves from market volatility and enhance the potential for steady income. Here’s a look at some advantages of a diversified portfolio:

  • Risk Reduction: Each asset class performs differently depending on market conditions. By diversifying, investors can help reduce their risk exposure when one asset class experiences a downturn.
  • Income Consistency: Different asset classes generate income at various intervals. Combining them can lead to more consistent income, as one investment’s income may offset another’s downturn.
  • Adaptability: As market conditions change, a diversified portfolio allows investors to rebalance and adjust their holdings to help maintain income levels and financial goals.

Evaluating Fixed-Income Securities for Reliable Cash Flow

Fixed-income securities, such as bonds and bond funds, are often the cornerstone of income-focused portfolios for retirees. They offer regular interest payments that can help provide a predictable income stream, particularly appealing to those nearing or in retirement. Fixed-income securities can vary significantly regarding risk and yield, so understanding their distinctions is essential.

Types of Fixed-Income Securities

  • U.S. Treasury Bonds: Considered one of the safest investments, U.S. Treasury bonds are backed by the government. They offer lower yields than corporate bonds but can provide stability and a steady income stream.
  • Corporate Bonds: These bonds typically offer higher yields than government bonds, as they carry higher risk. Selecting bonds from highly rated companies can help mitigate this risk.
  • Municipal Bonds: Issued by state and local governments, municipal bonds are often tax-exempt at the federal level, making them attractive for HNWIs in higher tax brackets.
  • Bond Funds: Bond funds pool money from multiple investors to invest in a diversified range of bonds. They provide instant diversification, but the income and principal value may fluctuate with interest rate changes.

Income from Real Estate: A Tangible Asset with Growth Potential

For investors interested in physical assets, real estate offers a compelling opportunity to generate income through rental payments and benefit from potential property appreciation. Many investors choose real estate for its income potential and its ability to diversify their portfolios. Here are some key benefits of real estate investments:

  • Cash Flow through Rental Income: Rental properties provide monthly income, which can be reinvested or used to cover living expenses. The steady nature of rental payments makes real estate a popular option for retirees.
  • Potential Tax Advantages: Real estate investors can benefit from potential tax deductions related to mortgage interest, property taxes, and property depreciation.
  • Hedge Against Inflation: Real estate generally appreciates over time, offering a potential hedge against inflation. Rental income may also increase with inflation, helping to maintain purchasing power.

Working with a fiduciary advisor can help enhance your real estate investment strategy. They can offer tailored guidance to help manage risks and protect income, helping your investments align with your financial goals.

Dividends as a Source of Passive Income

Dividend stocks provide a way to earn income without selling investments. Companies in sectors like utilities, consumer goods, and healthcare often have stable dividend-paying stocks. Dividend-focused funds are another way to diversify income sources, as they pool stocks from multiple companies that pay dividends.

Evaluating Dividend-Paying Stocks

  • Dividend Yield: The dividend yield represents the annual dividend payment as a percentage of the stock price. A higher yield can offer potential income, but it’s essential to consider the sustainability of the dividend payout.
  • Dividend Growth Rate: Companies that regularly increase their dividend payouts demonstrate financial health and commitment to returning value to shareholders, attracting retirees looking to offset inflation.
  • Dividend Aristocrats: Stocks in the S&P 500 that have increased their dividends for at least 25 consecutive years are known as Dividend Aristocrats. These companies offer a combination of reliability and growth potential.

The Importance of Tax-Efficiency in Income Generation

Taxes can significantly impact the net income received from investments, so structuring your investment portfolio to help minimize tax liability becomes crucial. A well-planned, tax-efficient strategy can help enhance the longevity of your assets and allow you to keep more of your hard-earned income.

  • Municipal Bonds: Interest income from municipal bonds is often exempt from federal taxes and, in some cases, state taxes, making them a great potential tax-efficient option for high-net-worth individuals.
  • Qualified Dividends: Qualified dividends are taxed at a lower rate than ordinary income, which can help reduce the potential tax burden on dividend-producing assets.
  • Tax-Deferred Accounts: Placing income-generating investments in tax-deferred accounts, such as IRAs, allows income to grow tax-free until withdrawal, offering potential tax benefits over the long term.

Working with a fiduciary can be invaluable when building a tax-efficient income strategy. They can help you structure an income-focused portfolio that helps minimize taxes while meeting your financial needs.

Managing Risk to Protect Income

Generating income from investments involves balancing income potential with effective risk management. For retirees and those nearing retirement, protecting your principal is crucial. Here are some strategies to help mitigate risk while prioritizing income generation:

  • Invest in High-Quality Bonds: Selecting investment-grade bonds can provide a potential income stream with reduced risk, making them an option for income-focused portfolios.
  • Limit Equity Exposure in Volatile Markets: While dividend-paying stocks are appealing for income, limiting exposure to high-volatility stocks is essential, which can cause potentially unpredictable returns.
  • Adjust Asset Allocation: Regularly reviewing and rebalancing your asset allocation can help ensure alignment with current market conditions, personal risk tolerance, and income needs.

Working with a fiduciary advisor can further support effective risk management, helping you tailor your portfolio to protect your income and financial security.

Working with an Advisor for Personalized Income Strategies

Crafting a personalized investment strategy to generate steady income can be complex, especially as retirement approaches. A knowledgeable advisor provides essential guidance, helping to create a tailored plan that meets income needs without compromising financial security. At Agemy Financial Strategies, our team of fiduciaries is here to guide you through the process, helping ensure that your money works efficiently to support a comfortable retirement.

Benefits of Professional Guidance

  • Portfolio Customization: Our advisors design portfolios aligned with your specific income goals, time horizon, and risk tolerance, optimizing investments to help deliver steady income.
  • Access to Unique Investment Opportunities: We offer access to a broader range of investments, including alternative options and private market offerings not typically available to individual investors.
  • Tax Efficiency: We help maximize after-tax income by structuring investments to minimize tax liabilities, supporting financial longevity in retirement.

Our team is committed to providing the insights and resources you need to make confident decisions about your financial future. To learn more about our full range of personalized services, see here.

Creating a Sustainable Income Plan With Agemy

Building a reliable income stream from investments is essential to helping you achieve financial stability throughout retirement. The objective is to craft a diversified portfolio that not only generates steady income but also preserves capital for the long term. At Agemy Financial Strategies, we’re here to help you create an income-focused portfolio tailored to your unique financial goals and needs.

Contact us today to learn more about how our team can support your journey toward a sustainable and more secure retirement income plan.

Disclaimer: The information provided in this blog is for educational purposes only and should not be considered as specific investment advice. While we aim to provide valuable insights, every individual’s financial situation is unique, and changes to your investment portfolio or financial strategies should only be made after consulting with a qualified financial advisor. We encourage you to reach out to our team before making any investment decisions to ensure they align with your personal goals and risk tolerance.

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New Changes to Retirement Savings Strategies For 2024

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The world of retirement planning is changing in 2024, including a nationwide crackdown on “Junk Fees.” Here’s what you need to know.

The landscape of financial advising is abuzz with new insights and strategies as we approach the upcoming year. Most recently, President Biden has announced that the Department of Labor will propose a new rule — the Retirement Security Rule — to extend fiduciary standards and close loopholes to protect people saving for retirement against conflicted advice.

Between shifting retirement account contribution limits and fresh investment opportunities, it’s important to understand all the latest developments that can significantly impact your financial future. Here’s what you need to know to navigate the upcoming year. Let’s begin with the year’s contribution changes.

2024 Retirement Account Contribution Limits

One of the key aspects of retirement planning is understanding the contribution limits for retirement accounts such as 401(k)s and IRAs. These limits determine how much you can contribute to these accounts each year, helping you build a robust nest egg for retirement. Let’s take a look at the expected contribution limits for 2024:

  • 401(k) Plans: The contribution limit for 401(k) plans is projected to increase to $23,000 in 2024, up from $22,500 in 2023. For those aged 50 and older, an additional catch-up contribution of $7,500 will remain the same. It’s important to note that these new amounts apply to 403(b) and most 457 plans.
  • IRA Contribution Limits: Individual Retirement Accounts (IRAs) are another popular retirement savings option. The contribution limits are to remain relatively stable for IRAs. For 2024, individuals under 50 can contribute up to $7,000, up from $6,500 in 2023. Catch-up contributions for adults 50 and older will remain at $1,000.
  • Roth IRA Contribution Limits: Beginning in 2024, more Americans will qualify for Roth IRA contributions, with the AGI range rising between $146,000-$161,000 for single filers, up from $138,000-$153,000 in 2023. The Roth IRA contribution phaseout for married couples filing together will rise to between $230,000 and $240,000 in 2024, up from between $218,000 and $228,000.

It’s essential to consult with a financial advisor or check the latest IRS guidelines to confirm these limits for 2024 and adjust your retirement savings strategy accordingly.

Income Limits for Roth Eligibility

The IRS has introduced income limits for Roth IRA contributions, making it less accessible for high-income individuals. For the 2024 tax year, the limit for single filers is $146,000; for joint filers, it’s $161,000. These limits have seen a significant reduction from the 2023 tax year, which was $153,000 for single filers and $228,000 for married couples who filed jointly.

Now, you might be wondering, “What are my alternatives?” That is where a financial advisor can be valuable. They have the experience to tailor a retirement strategy that aligns with your unique financial situation, helping you make the most of your wealth and plan for a comfortable retirement.

A financial advisor can explore alternative retirement savings options that can help you maintain or even enhance your current standard of living in retirement. By working together, you can strategize around tax-efficient investment choices, explore advanced retirement planning strategies, and ensure that your wealth continues to work for you in your golden years.

The Retirement Security Rule – Strengthening Protections for Americans Saving for Retirement

A new retirement security rule proposed by the Department of Labor is set to expand the definition of fiduciary advice and redefine which advisors fall underneath it.

The proposed rule will now cover things like fixed index annuities, advice to employers and plan fiduciaries, and one-time advice for transactions like 401(k) rollovers, the Whitehouse said in a statement. The proposed rule, which is open for public comment, could have far-reaching consequences for advisors, brokers, plan sponsors, and insurance agents.

The rule will also cut so-called junk fees in retirement products, which the Whitehouse said will potentially provide billions more in savings for those preparing for retirement.

“Today’s proposed Retirement Security rule by the Biden Administration expands protections for retirement savers, ensures sounder financial advice, lowers investment junk fees, and gives every American saving for retirement greater peace of mind about their portfolios,” the Whitehouse said.

The proposed rule aims to address a known fiduciary gap to the Employee Retirement Security Income Security Act, also known as ERISA, the federal law governing retirement plans. Under the current rule, financial advisors must put their client’s interests above their own commissions when recommending the purchase of securities like stocks and mutual funds.

At Agemy Financial Strategies, we strongly support the proposal for transparency and encourage those seeking advice to always look for a fiduciary advisor for your retirement income planning needs. Because financial planners aren’t licensed, look for one who has been certified as a CFP® professional by the Certified Financial Planner Board of Standards (CFP Board). These financial planners earn their certifications by being experienced financial professionals who have passed a rigorous financial planning examination. They also agree to uphold the highest standards of integrity, accountability, and client service.

Cracking Down on Junk Fees in Retirement Accounts

One area of focus of the proposed plan has been eliminating junk fees. Junk fees are unnecessary charges that can significantly affect your retirement savings over time, potentially reducing your nest egg.

The Department of Labor (DOL) has been working to develop rules and regulations to increase transparency and reduce retirement account fees. These initiatives help to ensure that financial institutions and retirement plan providers act in the best interests of their clients and disclose all associated fees.

The recent regulation aims to support guidance on transferring assets from employer-sponsored plans like 401(k)s, a decision affecting approximately 5 million individuals annually. In 2022, Americans shifted approximately $779 billion from their 401(k)s to IRAs. This rule is set to help protect investors from bad advice and help ensure that information is presented in a manner that prioritizes your best interests.

As an investor, staying informed about these regulatory changes is crucial, and monitoring your retirement account statements for any fees eroding your savings is crucial. Working with a Fiduciary can help you navigate these complex financial waters, as they are legally obligated to act in your best interests and provide advice that minimizes fees.

The Importance of Working with a Fiduciary

A fiduciary is a financial professional legally bound to prioritize your best interests when providing investment advice or managing your retirement accounts. Unlike some financial advisors with conflicts of interest, fiduciaries are legally bound to act in your best interests.

They are committed to helping you achieve your financial goals without being influenced by commissions or fees tied to specific financial products. Choosing to work with a Fiduciary can be a game-changer for your retirement planning for several reasons:

  • Reducing Risk: Fiduciaries help you make informed investment decisions that align with your risk tolerance and long-term objectives. They can design a diversified portfolio tailored to your unique circumstances, which can be crucial for managing risk in retirement.
  • Staying Informed: The financial landscape continually evolves, with new regulations and investment options emerging regularly. Fiduciaries stay current with these changes, ensuring your retirement strategy aligns with current best practices.
  • Peace of Mind: Working with a Fiduciary can provide peace of mind, knowing that your financial future is in capable hands. You can trust that your advisor is always working in your best interests.

Working With Agemy Financial Strategies

If you are worried about your road to retirement in 2024, working with a qualified fiduciary advisor like the team at Agemy can help provide valuable guidance and transparency regarding retirement planning. Our fiduciary advisors, Andrew A. Agemy, MRFC®, and son Daniel J. Agemy, CPM®, RFC®, can help you develop a personalized retirement plan, optimize your investment strategy, and stay on track to achieve your goals.

At Agemy Financial Strategies, we are committed to educating our clients on various financial matters, including retirement planning, wealth management, tax planning, and more. With over 30 years of experience in helping individuals reach retirement stress-free, our unwavering dedication to educating and serving our clients remains at the core of our mission. Our financial guide to retirement planning is one of the many tools we offer to help you take control of your finances and plan for the future. Contact us today to learn how we can help you achieve financial security and peace of mind for 2024 and beyond.

Disclaimer: This content is for educational purposes only and should not be considered financial or investment advice. Please consult with the fiduciary advisors at Agemy Financial Strategies before making any investment decisions.

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Building a Robust Retirement Portfolio: Key Strategies for Pre-Retirees

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In 2024, despite global geopolitical tensions and economic uncertainties, the world’s economy has shown remarkable resilience and steady growth. For those looking to enjoy a comfortable retirement, however, it’s not enough to rely on general market trends. The key to financial security lies in building a well-balanced, carefully managed investment portfolio that can weather both global shifts and personal financial challenges.

As retirement nears, most pre-retirees share a common concern: making sure they have enough income to maintain their lifestyle without depleting their savings. Alarmingly, over 57% of workers believe they’re behind on their retirement savings goals. This is where a well-structured portfolio becomes essential to protecting your financial future.

For retirees in states like Connecticut and Colorado, adopting a strategic approach to income generation and risk management is more crucial than ever. In this blog, we’ll explore key strategies for building a strong retirement portfolio, review current statistics on retirement needs, and explain how Agemy Financial Strategies can help you navigate the complexities of retirement planning.

It’s important to note the following information provided is for educational purposes only and should not be considered as specific investment advice. We encourage you to reach out to our team before making any investment decisions to ensure they align with your unique personal goals and risk tolerance.

Understanding the Universe of Income-Generating Alternatives 

One common misconception among pre-retirees is that bonds or traditional stock market investments are the only viable sources of income during retirement. While bonds and stocks have their place in a diversified portfolio, they are not the only—or even the best—options for generating steady retirement income. Many overlook other income-generating investments that can provide reliable returns with reduced risk.

The universe of income-generating alternatives includes options such as:

  • Corporate Bonds: Corporate bonds offer fixed interest payments and the return of principal at maturity. They can provide a steady income stream without the risk and volatility associated with equities.
  • Preferred Securities: These securities combine elements of stocks and bonds, offering income generation and growth potential while generally less risky than common stocks.
  • Dividend-Paying Stocks: Certain stocks provide regular dividend payments, which can serve as an additional income stream during retirement. While these are more volatile than bonds, they offer income and capital appreciation potential.

Corporate Bonds: Stability and Predictability

Stability is crucial when constructing a retirement portfolio. Corporate bonds are an excellent option for pre-retirees who want a steady income stream without the risks associated with stocks. Unlike stock dividends, which can fluctuate or be cut, corporate bonds guarantee a fixed interest payment as long as the company remains solvent.

Over 2.5 million households in the U.S. invest in corporate bonds, and 65% of all transactions are retail size (100 bonds or less). This demonstrates the growing popularity of corporate bonds as a reliable income source for retirees. A well-researched bond can offer retirees predictable income security without the stock market’s volatility.

The Importance of Diversification in Retirement

Diversification is key to managing risk in any portfolio, but it becomes even more critical as retirement nears. For pre-retirees, a well-diversified portfolio can mitigate the impact of market volatility while still allowing for income generation and growth.

Here’s how diversification might look in a retirement portfolio:

  • Income-Generating Investments: Corporate bonds, preferred securities, and dividend-paying stocks. These investments provide steady income and reduce the need to sell assets during market downturns.
  • Growth-Oriented Investments: Although income is a priority in retirement, growth is still important to help ensure the portfolio can keep up with inflation. Stocks or equity funds can be part of a diversified portfolio to provide long-term growth.
  • Alternative Investments: Some retirees include real estate, private equity, or other alternatives to diversify further and reduce reliance on the stock market.

One of the common mistakes pre-retirees make is leaving their 401(k) or retirement accounts invested solely in equities or bond funds. While these might have served them well during their working years, they can expose retirees to unnecessary risk. As always, it is important to work alongside your advisor to see if this approach is right for you.

Managing Market Volatility in Retirement

Market volatility is a significant concern for retirees who rely on their portfolios to cover living expenses. Unlike younger investors who can ride out market downturns, retirees often don’t have that flexibility. A sudden drop in the market could severely impact savings, making it challenging to recover.

In fact, 84% of Americans agree that recent market volatility underscores the need for guaranteed income in retirement. This highlights prioritizing stability over high-risk, high-reward investments as retirees focus on preserving their financial security.

Consider income-focused investments, such as corporate bonds and preferred securities, to mitigate this risk. These options provide reliable income even during market downturns, allowing retirees to avoid selling assets at a loss. With a well-planned portfolio, retirees can generate enough income to cover living expenses without relying on unpredictable stock market returns.

The Role of Annuities in a Robust Portfolio 

Certain annuities can be a key component of a diversified retirement portfolio, offering stability and peace of mind. In fact, total U.S. annuity sales reached a record-high $385.4 billion in 2023, driven by the need for secure, guaranteed income in an increasingly volatile market.

For some retirees, annuities can play a valuable role in providing guaranteed income. Fixed annuities, for example, offer a fixed rate of return for a specified period, similar to bonds, but they come with the additional benefit of tax-deferred growth. This can be particularly advantageous for retirees looking to minimize their tax liabilities while still generating income.

However, not all annuities are created equal. Variable annuities, for example, can be risky and come with high fees. It’s important to consult with an advisor to help navigate the complex world of annuities. An advisor can help ensure they choose products that align with their income needs and risk tolerance.

How Agemy Financial Strategies Helps Pre-Retirees Build Robust Portfolios

Agemy Financial Strategies focuses on helping pre-retirees build robust portfolios that can weather market volatility and provide the income needed for a comfortable retirement. Here are some key ways our fiduciary advisors can help:

  1. Customized Portfolio Construction: Each retiree’s financial situation is different. We work closely with clients to design a portfolio that reflects their risk tolerance, income needs, and long-term goals.
  2. Income-Focused Strategy: We prioritize investments that generate reliable income. This helps ensure clients have the cash flow they need without selling assets during market downturns.
  3. Ongoing Portfolio Management: Retirement planning doesn’t stop once the portfolio is set up. Agemy continually monitors clients’ portfolios, adjusting as needed to adapt to changing market conditions and life circumstances.
  4. Tax Efficiency: Retirement income isn’t just about how much you earn—it’s also about how much you keep after taxes. We incorporate tax-efficient strategies into portfolio planning, helping retirees maximize their after-tax income.
  5. Risk Management: Our advisors help retirees balance the need for income and preservation of capital with the potential for growth by incorporating a mix of lower-risk investments with growth opportunities.

Take Control of Your Retirement with Agemy Financial Strategies

Building a robust retirement portfolio requires a strategic approach that balances income generation, risk management, and growth. By focusing on income-generating investments, pre-retirees can help ensure they have the financial stability they need to enjoy retirement.

At Agemy Financial Strategies, we are committed to helping pre-retirees in Connecticut, Colorado, and beyond develop personalized retirement strategies that align with their goals. Whether you are nearing retirement or already retired, now is the time to take control of your financial future.

Contact us today to learn more about how you can build a robust portfolio that will provide the income and security you need for a stress-free retirement.

Frequently Asked Questions

Q: How do corporate bonds help retirees generate income?
A: Corporate bonds provide retirees with fixed interest payments over a specified period, offering a predictable and reliable source of income. Upon maturity, retirees receive their initial investment (the principal) back. This stability makes corporate bonds a great option for retirees who want to avoid risks while generating income.

Q: Why is diversification important for retirement portfolios?
A: Diversification is critical in retirement because it helps spread risk across different asset types, reducing the impact of market volatility on your savings. By including a mix of income-generating investments like bonds, preferred securities, and dividend-paying stocks, along with some growth-oriented investments, retirees can achieve a balance between stability and growth.

Q: What is the benefit of working with a fiduciary advisor like Agemy Financial Strategies?
A: A fiduciary advisor is legally obligated to act in your best interest, helping ensure that your financial plan meets your retirement goals. Agemy Financial Strategies helps pre-retirees create customized, income-focused portfolios that balance growth and stability, offering ongoing management and tax-efficient strategies to maximize your retirement savings.

Q: Can I rely solely on my 401(k) for retirement?
A: While a 401(k) is a valuable retirement savings tool, relying solely on it may not provide the financial security needed for a comfortable retirement. A well-rounded retirement plan should include additional income sources, such as corporate bonds, annuities, or dividend-paying stocks, to ensure stability and minimize risks associated with market volatility.

Q: How can I protect my retirement savings from market volatility?
A: To protect your retirement savings from market volatility, focus on income-generating investments, such as corporate bonds and preferred securities. These investments provide reliable income even during market downturns, allowing retirees to avoid selling off assets at a loss. A well-diversified portfolio that balances growth with income generation is key to minimizing risk.

Disclaimer: The information provided in this blog is for educational purposes only and should not be considered as specific investment advice. While we aim to provide valuable insights, every individual’s financial situation is unique, and changes to your investment portfolio should only be made after consulting with a qualified financial advisor. We encourage you to reach out to our team before making any investment decisions to ensure they align with your personal goals and risk tolerance.

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