How to Create Consistent Income in Retirement

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Retirement is not just about reaching the end of your working years; it’s about financial independence, lifestyle freedom, and peace of mind. But how can retirees achieve a consistent income without the security of a regular paycheck? The answer lies in a carefully crafted retirement income strategy. At Agemy Financial Strategies, we support individuals and families in navigating retirement with confidence, using time-tested methods to help ensure income stability throughout retirement.

In this blog, we’ll explore how to create a consistent income in retirement, the key components of a reliable income plan, and how Agemy Financial Strategies can help you make the most of your golden years.

Why Consistent Income Matters in Retirement

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During your working years, income is typically steady and predictable, thanks to regular paychecks. Once you retire, the paychecks stop, but the bills don’t. From housing and healthcare to groceries and travel, your financial needs continue and may even increase with time.

Without a structured income plan:

  • You may run out of money too early.
  • You could end up relying too heavily on potentially disappearing Social Security.
  • You might not be able to maintain your desired lifestyle.
  • Market downturns could wipe out years of savings.

This is why replacing your paycheck with consistent, reliable income sources is essential to achieving a successful and stress-free retirement.

Step 1: Know Your Retirement Expenses

The first step in building a retirement income strategy is understanding what your expenses will look like in retirement. These generally fall into two categories:

Essential Expenses

These are non-negotiable, must-have costs such as:

Discretionary Expenses

These are lifestyle choices that add joy and fulfillment:

Having a clear picture of both helps you estimate how much income you’ll need every month. A good rule of thumb is to plan for 70–80% of your pre-retirement income, but the actual figure depends on your lifestyle goals.

Step 2: Maximize Guaranteed Income Sources

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Even for high-net-worth individuals, guaranteed income sources remain a cornerstone of a resilient retirement strategy. While HNWIs may not rely on these sources to meet basic living expenses, they can serve as powerful tools for risk mitigation, tax efficiency, estate planning, and legacy preservation.

Social Security: A Strategic Lever

Although Social Security may represent a relatively small portion of a high-net-worth retiree’s overall income, it’s still a valuable component of a well-optimized income plan. For married couples or those with significant longevity potential, a strategic claiming strategy can result in hundreds of thousands of dollars in additional lifetime benefits.

Key considerations include:

  • Delaying benefits until age 70 to lock in the maximum monthly payment is a strategy often used by HNWIs to create longevity insurance.
  • Coordinating spousal benefits to help maximize household income while minimizing taxation.
  • Integrating Social Security with other income streams to help reduce the impact of provisional income taxes.

At Agemy Financial Strategies, we help clients incorporate Social Security into their broader tax and cash flow strategies, ensuring it supports their total financial picture.

Private Pension and Executive Benefit Plans

For HNWIs who are corporate executives, business owners, or former partners in professional firms, access to non-qualified deferred compensation plans (NQDCs), supplemental executive retirement plans (SERPs), or private pensions adds another layer of guaranteed income.

Decisions around:

  • Lump sum vs. annuitized payouts
  • Timing of distributions to minimize tax brackets
  • Survivorship benefits or spousal continuation

This requires careful coordination with your retirement timeline and estate planning goals. These decisions can significantly affect lifetime income, legacy preservation, and tax exposure.

Annuities for Wealth Preservation and Longevity Risk

While annuities are often viewed as tools for middle-income retirees, HNWIs can use sophisticated annuity structures to help:

Types often used by HNWIs include:

  • Fixed Indexed Annuities (FIAs) with income riders for protected growth and lifetime income guarantees.
  • Deferred Income Annuities (DIAs) for longevity hedging and delayed income generation.
  • Private Placement Annuities (PPAs) offering tax-deferral benefits within a customized investment chassis.

Agemy Financial Strategies frequently incorporates high-end annuity strategies as part of a diversified retirement income approach, especially for clients seeking predictable income that complements a more aggressive or growth-oriented portfolio.

Disclaimer: Annuities are insurance products that may offer guarantees of income or principal protection, but they are not without risks. Annuities may involve fees, surrender charges, and limitations on liquidity. Guarantees are subject to the claims-paying ability of the issuing insurance company and are not backed by any government agency. Carefully consider your financial objectives, risk tolerance, and the terms of the annuity contract before purchasing. 

Step 3: Build a Diversified Investment Portfolio for Income

Guaranteed income may not cover all your expenses, which is why investment income plays a crucial role. A diversified portfolio can help generate steady cash flow while managing risk.

Dividend-Paying Stocks

Blue-chip companies with a strong history of dividend payments can provide income and potential for growth. These stocks often increase dividends over time, helping you keep up with inflation.

Bonds and Fixed Income Investments

Bonds offer more stability than stocks and can provide regular interest payments. Consider:

  • Government Bonds
  • Municipal Bonds (often tax-free)
  • Corporate Bonds
  • Bond ETFs or Mutual Funds

Real Estate Investment Trusts (REITs)

REITs offer exposure to real estate with the benefit of regular income through dividends. They can help diversify your income stream and add inflation protection.

Total Return Strategy

This approach focuses on balancing income and growth. Rather than chasing high-yield investments, it combines asset growth, dividends, and withdrawals to meet income needs sustainably.

Step 4: Create a Withdrawal Strategy

How you withdraw money from your accounts matters just as much as how you invest. A smart withdrawal strategy can help ensure you don’t outlive your savings.

The 4% Rule

A popular guideline suggests withdrawing 4% of your retirement savings annually. For example, if you have $1 million saved, you’d withdraw $40,000 in the first year.

However, this rule may be too simplistic. Here’s why:

  • It was based on outdated market assumptions from the 1990s, including higher bond yields and different market conditions than we face today.
  • It doesn’t account for sequence of returns risk, which can significantly impact portfolio longevity if poor market performance occurs early in retirement.
  • It ignores tax implications and doesn’t differentiate between taxable, tax-deferred, or tax-free accounts, a crucial consideration for HNWIs with complex financial landscapes.
  • Healthcare and long-term care costs have risen dramatically, often outpacing general inflation.
  • It fails to reflect lifestyle flexibility and dynamic spending patterns that many retirees now prefer, particularly those with the means to spend more in early retirement and scale back later.

Instead of relying on a fixed withdrawal rate, Agemy Financial Strategies takes a dynamic, personalized approach that considers:

For high-net-worth retirees, flexibility, precision, and active income management are far more valuable than outdated rules of thumb.

Step 5: Plan for Inflation and Longevity

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Inflation Protection

Even at modest levels, inflation erodes purchasing power over time. A $50,000 retirement income today might feel like $37,000 in 20 years if inflation averages 2%.

Inflation protection strategies include:

  • Investing in growth assets like stocks
  • Holding inflation-adjusted bonds (e.g., TIPS)
  • Choosing annuities with inflation riders
  • Delaying Social Security to increase monthly benefits

Longevity Planning

Living longer is a blessing, but it also increases the risk of outliving your assets. Planning for a 30+ year retirement is critical.

Strategies include:

Step 6: Don’t Overlook Healthcare and Long-Term Care Costs

Healthcare is one of the largest expenses in retirement. According to the latest Fidelity Retiree Health Care Cost Estimate, an average couple can expect to pay approximately $330,000 (after tax) to cover health care costs in retirement, and that number does not include the cost of long-term care.

Medicare Planning

Understanding when and how to enroll in Medicare is crucial. Parts A, B, C, and D offer different coverages and costs. You may also want supplemental coverage (Medigap).

Long-Term Care Insurance

This covers services not included in regular health insurance, such as in-home care, assisted living, or nursing homes. Planning ahead can preserve your assets and provide peace of mind for your family.

Step 7: Work with a Fiduciary Financial Advisor

Working with a fiduciary advisor like those at Agemy Financial Strategies helps ensure your best interest is always the top priority.

Here’s what a fiduciary advisor can help you with:

Our team at Agemy Financial Strategies brings decades of experience helping clients turn savings into sustainable income while helping protect against risk and uncertainty.

The Agemy Financial Strategies Approach

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At Agemy Financial Strategies, our mission is to help clients retire with confidence and clarity. Our proprietary income planning process is designed to help ensure your money works for you, no matter how long you live.

What Sets Us Apart:

Whether you’re five years away from retirement or already there, we help you build and maintain an income stream that lasts.

Contact us today to schedule a complimentary consultation.

Final Thoughts

Creating consistent income in retirement isn’t a one-size-fits-all formula; it’s a tailored strategy that requires careful planning, diversified investments, and a deep understanding of your goals and financial landscape.

By combining guaranteed income sources, a diversified portfolio, tax-efficient withdrawals, and long-term planning, you can enjoy retirement with confidence and peace of mind. The key is starting early and working with a trusted fiduciary who understands your unique situation.

At Agemy Financial Strategies, we help you do just that. Let us show you how to turn your hard-earned savings into a sustainable retirement paycheck for life.

Contact us today to get started. 

FAQs: Creating Consistent Income in Retirement

  1. What is the best way to create consistent income in retirement if I already have substantial assets?
    Even with significant wealth, consistent income requires intentional planning. Diversifying income sources, such as tax-efficient portfolio withdrawals, real estate income, annuities, and deferred compensation plans, can help ensure stability while managing taxes and preserving capital. A custom strategy tailored to your goals, time horizon, and legacy plan is essential.
  2. Do I still need Social Security if I have multiple income streams?
    Yes, Social Security can still play a valuable role. While it may not be a primary income source for HNWIs, it offers longevity insurance and can help reduce drawdowns from investment accounts. Coordinated claiming strategies can also maximize household benefits and tax efficiency.
  3. How can I protect my income strategy from market volatility?
    We use a combination of risk-managed investments, fixed income products, and guaranteed income vehicles like annuities to help insulate income from market swings. A “bucket strategy” or time-segmented approach can help ensure immediate income needs are met without selling growth assets in a downturn.
  4. What role do taxes play in my retirement income plan?
    A significant one. HNWIs often have assets spread across taxable, tax-deferred, and tax-free accounts. The order of withdrawals, timing of RMDs, and capital gains strategy can drastically impact net income. We design tax-efficient income plans to help preserve wealth and reduce lifetime tax liabilities.
  5. Is the 4% Rule a good guideline for someone with a multi-million-dollar portfolio?
    Not necessarily. The 4% Rule is a generalized rule of thumb that may not account for today’s lower interest rates, market dynamics, or your personal financial situation. For HNWIs, a more flexible, customized withdrawal strategy aligned with your spending, tax strategy, and estate goals can be far more effective.

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 Financial Check-In: Are You On Track for Your Retirement Goals?

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As we move through the second half of the year, it’s the perfect time to reflect and evaluate where you stand on your path toward retirement. With headlines dominated by inflation, market volatility, rising interest rates, and uncertainty around future tax policy, staying on course can feel more challenging than ever.

A mid-year financial check-in offers a critical opportunity to assess your goals, measure progress, and make necessary adjustments to help ensure you’re on track for the future you envision.

At Agemy Financial Strategies, we understand that life changes, and so do markets, tax laws, and personal circumstances. That’s why we encourage clients and readers alike to carve out time each year, ideally around mid-year, to re-evaluate their financial strategy. Whether retirement is just around the corner or still decades away, the steps you take now can make a world of difference later.

In this blog, we’ll walk through the key areas to review during your mid-year check-in, provide insight into common retirement planning mistakes, and share how working with a fiduciary financial advisor can help you stay aligned with your goals.

The June 2025 Economic Snapshot

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As of June 2025, several key economic indicators suggest both opportunities and risks for retirement planners.

U.S. economic growth has slowed significantly, with GDP growth decelerating to around 1.6% year-over-year, down from approximately 2.8% in 2024. The first quarter of 2025 even saw a slight contraction of 0.2–0.3%, driven by increased imports in anticipation of tariffs and persistent inflation. On a global scale, the OECD reports that GDP growth is tracking near 2.9%, with the U.S. outlook appearing especially subdued amid heightened economic uncertainty.

Inflation remains a stubborn challenge, though it has moderated somewhat from the highs of previous years. As of May, the Consumer Price Index (CPI) shows inflation at2.4% year-over-year, with core inflation (excluding food and energy) standing at 2.8%. However, the Personal Consumption Expenditures (PCE) price index, which the Federal Reserve watches most closely, rose sharply to 3.6% in the first quarter, underscoring ongoing inflationary pressures that affect purchasing power and long-term planning.

In response, the Federal Reserve has kept interest rates steady at 4.25–4.50% since March 2025. While markets initially hoped for rate cuts in the second half of the year, the Fed has remained cautious due to the inflationary impact of tariffs and global supply disruptions. As a result, any rate cuts may be delayed until late 2025 or beyond. This “higher for longer” stance on interest rates supports savers with better yields on fixed-income investments, but it also raises the cost of borrowing and puts pressure on growth-sensitive sectors.

The labor market continues to show resilience, but signs of strain are emerging. Job growth figures are increasingly being revised downward, suggesting that the employment picture may be weaker than headline numbers suggest. Economists anticipate that unemployment could rise to around 4.8%by year-end. Still, consumer spending, a key engine of the economy, remains a relatively bright spot, with Deloitte forecasting real personal consumption expenditure (PCE) growth near 2.9% for the full year.

Finally, trade tensions and tariffs remain a major headwind. The April “Liberation Day” tariff initiative caused short-term stock market turmoil, though investor sentiment rebounded after signs that tariff expansion may be slowing. Despite that recovery, ongoing policy uncertainty continues to dampen business investment and fuel inflation, adding further complexity to the Fed’s efforts to navigate a soft landing.

What This Could Mean for Your Retirement Strategy

  • Growth is subdued: If your retirement projections assume 3–4% returns, beware, economic growth is likely too weak to support that over the near term.
  • Inflation remains sticky: Although cooled from 2024 highs, it continues to erode purchasing power. Your retirement budget should reflect a higher cost-of-living.
  • Interest rates might stay higher longer: This benefits savers but increases borrowing costs and could weigh on equity markets.
  • Job market softening: Risks to employment and productivity mean your plans should include income buffers or contingency funds.
  • Market volatility is real: Tariff-related shocks and geopolitical tensions can trigger sudden corrections. A diversified, long-term investment plan is key.

Why a Mid-Year Financial Check-In Matters

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While most people wait until year-end to review their finances, doing a check-in mid-year can provide several advantages:

  • Course Correction: If you’re off-track, there’s still time to make changes before the end of the year.
  • Tax Efficiency: You can still implement tax-saving strategies to help reduce your liabilities.
  • Retirement Alignment: As markets fluctuate and personal situations change, a mid-year review helps ensure your retirement savings stay on pace.
  • Behavioral Discipline: Regular reviews promote accountability and reinforce healthy financial habits.

Let’s explore the components of a smart and strategic mid-year check-in.

1. Reassess Your Retirement Goals

Start by asking yourself the most important question: Are my goals still the same?

Your retirement vision may change over time. Maybe you’re now thinking about relocating, starting a business post-retirement, or retiring earlier (or later) than originally planned. Your financial strategy should evolve to reflect these changes.

Consider the following when reviewing your retirement goals:

  • Target retirement age: Has it shifted?
  • Lifestyle expectations: Are you still aiming for the same standard of living?
  • Big-ticket items: Have you added new travel plans, real estate purchases, or health-related costs?
  • Legacy goals: Has your desire to leave an inheritance or donate to charity changed?

Once your goals are clarified, you can better evaluate whether your savings rate, investments, and timeline are still appropriate.

2. Review Your Retirement Accounts and Savings Progress

Mid-year is a great time to check how much you’ve saved so far and whether you’re pacing well toward your annual and long-term targets.

Here are key questions to ask:

  • Are you contributing the maximum to your retirement accounts (401(k), IRA, Roth IRA, etc.)?
  • Have you taken advantage of catch-up contributions if you’re over 50?
  • How have your investments performed year-to-date, and are they in line with your expectations?
  • Are you taking full advantage of employer matches and tax-deferred growth?
  • Are you maintaining a healthy balance between tax-deferred, taxable, and tax-free accounts for future tax flexibility?

If you’re behind on your savings goals, don’t panic; there’s still time to adjust. Consider increasing your contribution rate or reallocating investments to better align with your timeline and risk tolerance.

3. Revisit Your Budget and Cash Flow

Your budget is the foundation of your financial plan. If your spending is outpacing your income, your retirement goals could be at risk. Mid-year is a smart time to re-evaluate where your money is going and identify opportunities to increase savings.

Things to check:

  • Are you consistently living below your means?
  • Have any expenses increased unexpectedly (e.g., medical bills, home repairs)?
  • Are there discretionary expenses you can reduce or eliminate?
  • Have you received any bonuses, tax refunds, or windfalls you can redirect to savings?

If you’re not tracking your spending, now is the time to start. Even a basic budgeting app or spreadsheet can give you a clear picture of your financial habits.

4. Assess Your Investment Strategy

Market volatility,inflation, interest rates, and global events all affect how your investments perform and how they should be managed. Review your investment strategy to ensure it reflects both current conditions and your risk tolerance.

Ask yourself:

  • Is your asset allocation (mix of stocks, bonds, cash, etc.) still appropriate for your age and goals?
  • Have you rebalanced your portfolio this year to maintain your desired risk level?
  • Are you diversified enough to protect against downside risk?
  • Are your fees (advisory, fund expense ratios, etc.) eating into returns?

For those nearing retirement, sequence of return risk, the danger of poor market performance early in retirement, becomes a serious concern. This might be a good time to discuss a bucket strategy or other income planning techniques with your advisor.

5. Maximize Tax Efficiency

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Your tax strategy can have a big impact on retirement readiness, especially if you’re pulling from multiple types of accounts or considering Roth conversions.

Things to review mid-year:

  • Are you withholding the right amount in taxes?
  • Are you in a low-income year that makes a Roth conversion especially beneficial?
  • Have you harvested any capital losses to offset gains?
  • Are there tax-advantaged accounts (like HSAs or 529 plans) you should contribute to?
  • Are you eligible for qualified charitable distributions (QCDs) if you’re over 70½?

Strategic tax planning throughout the year can help reduce your lifetime tax liability, not just your bill for the current year.

6. Plan for Healthcare Costs

Healthcare is one of the largest expenses in retirement. According to Fidelity, the average 65-year-old couple retiring today will need over $315,000 to cover healthcare costs in retirement, excluding long-term care.

Use your mid-year check-in to plan ahead:

  • Are you contributing to a Health Savings Account (HSA)?
  • Do you have sufficient coverage for disability or critical illness?
  • Have you considered long-term care insurance?
  • Do you understand your options for Medicare or pre-Medicare health insurance?

Staying proactive can help prevent healthcare expenses from derailing your retirement plan.

7. Evaluate Debt and Liabilities

Debt can significantly delay or diminish your retirement lifestyle. During your mid-year review, look closely at your liabilities:

  • Have you made progress paying down high-interest debt?
  • Is your mortgage on track to be paid off before retirement?
  • Are you using credit responsibly?
  • Are you co-signed on any loans that could become your responsibility?

If debt is holding you back, consider creating a payoff plan or refinancing to more favorable terms.

8. Update Your Estate Plan

Estate planning isn’t just for the ultra-wealthy; it’s a crucial piece of retirement readiness. Mid-year is a great time to revisit your documents and beneficiaries to help ensure everything reflects your current wishes.

Checklist:

Working with a trusted financial planner and estate attorney can assist you in building a plan that helps safeguard your legacy.

9. Check Your Insurance Coverage

Insurance is often overlooked in financial check-ins, but it plays a vital role in helping protect your retirement plan.

Evaluate:

  • Life insurance: Do you still need it, or do you need more coverage?
  • Disability insurance: Is your income protected if you become unable to work?
  • Home and auto insurance: Are you covered adequately?
  • Umbrella insurance: Could a lawsuit or major event threaten your assets?

Make sure your coverage keeps pace with your financial situation and goals.

10. Meet With a Fiduciary Financial Advisor

Perhaps the most important step in a mid-year financial check-in is working with a fiduciary advisor; someone legally and ethically required to put your best interests first.

A fiduciary can:

  • Help you assess whether you’re on track for retirement
  • Optimize your investment and tax strategies
  • Identify hidden risks in your plan
  • Create a tailored retirement income strategy
  • Offer unbiased, client-focused advice

At Agemy Financial Strategies, we’re experienced in helping individuals and families prepare for the retirement they deserve. As fiduciaries, we take a proactive approach to planning, rooted in trust, transparency, and long-term thinking.

Common Retirement Planning Pitfalls to Avoid

Even the most disciplined savers can fall into retirement planning traps. Here are some we often see:

  • Underestimating inflation and how it erodes purchasing power
  • Not adjusting asset allocation as retirement approaches
  • Failing to plan for healthcare or long-term care costs
  • Relying too heavily on Social Security
  • Ignoring taxes in retirement
  • Waiting too long to start saving or seeking professional advice

Avoiding these mistakes can help ensure your retirement is financially secure and personally fulfilling.

How Agemy Financial Strategies Can Help

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At Agemy Financial Strategies, we understand that retirement planning isn’t a one-size-fits-all process. It’s a dynamic, evolving journey that must respond to market conditions, personal goals, and changing financial landscapes. That’s why we take a proactive and personalized approach to your financial future.

As fiduciary advisors, we are legally and ethically committed to acting in your best interest. We don’t push products; we create comprehensive, strategic plans tailored to your unique retirement vision. Whether you’re approaching retirement or years away, we help you navigate today’s challenges with confidence and clarity.

Here’s how we support you:

  • Customized Retirement Planning: We assess your current financial position, align your investments with your timeline, and help you define a clear retirement income strategy.
  • Tax-Efficient Strategies: From Roth conversions to tax-loss harvesting, we look for ways to help reduce your tax burden now and in retirement.
  • Risk Management: In times of economic uncertainty and market volatility, we build resilient portfolios designed to help preserve capital while pursuing long-term growth.
  • Social Security and Income Optimization: We help determine when and how to take Social Security and structure your income in a way that supports your lifestyle without running out of funds.
  • Ongoing Guidance: Financial planning is not a “set-it-and-forget-it” exercise. We conduct regular reviews, adjust strategies as needed, and keep you informed as laws, markets, and your goals evolve.

With inflation still a concern, interest rates at multi-year highs, and global uncertainty influencing every asset class, now is the time to partner with a team that understands the full picture. At Agemy Financial Strategies, we’re not just preparing you for retirement; we’re helping you thrive in it.

Let’s talk about how to strengthen your financial plan for the rest of 2025 and beyond.

Schedule a complimentary consultation. 

Final Thoughts: Small Adjustments, Big Impact

Your mid-year financial check-in doesn’t have to be a massive overhaul. In fact, small, intentional changes can make a big difference over time.

Whether it’s increasing contributions, adjusting your asset allocation, or scheduling a conversation with your advisor, each step you take today helps lay a stronger foundation for tomorrow.

Remember: Retirement isn’t a destination. It’s a journey, and like any journey, it requires preparation, navigation, and course correction along the way.

If you’re ready to take your mid-year check-in to the next level, our team at Agemy Financial Strategies is here to help. Let’s work together to build a plan that aligns your wealth with your goals and your retirement with your vision.

Contact Agemy Financial Strategies today to schedule your retirement review and help ensure you’re on the right track.

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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Are You Overlooking This Crucial Piece of Your Retirement Plan?

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When most people think about retirement planning, their minds instantly go to investment portfolios, 401(k)s, IRAs, or Social Security benefits. While those financial tools are essential, there’s another cornerstone of a secure and stress-free retirement that’s often underutilized or completely overlooked: insurance.

As we observe Insurance Awareness Day on June 28, it’s the ideal time to assess whether your retirement plan includes the right protective strategies to help safeguard your health, your assets, your family, and your legacy.

Many retirees think insurance is no longer relevant once they stop working. After all, you may have paid off your mortgage, your kids are grown, and your employer-provided insurance plans are long gone. But in reality, the need for insurance doesn’t disappear in retirement—it simply changes. In fact, the right insurance coverage could be the difference between a confident, comfortable retirement and one burdened by unexpected expenses and financial risk.

In honor of Insurance Awareness Day, let’s break down why insurance matters more than ever in retirement—and how you can integrate it into a comprehensive financial strategy built for security and peace of mind.

Why Insurance is a Critical Yet Overlooked Element in Retirement Planning

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Insurance often plays a foundational role in financial stability, yet its importance in retirement is frequently minimized or misunderstood. Let’s explore why it’s so crucial.

Insurance Protects Against the Unknown

Retirement is meant to be your reward after years of hard work. But life doesn’t stop throwing curveballs just because you’ve stopped working. Medical emergencies, long-term care needs, and financial market volatility can derail even the most well-planned retirement. Insurance can help provide financial security and predictability in an otherwise unpredictable world.

It Helps Preserve Wealth

You’ve spent decades accumulating assets. Now the goal is to preserve that wealth for your own use and possibly to pass on to heirs or charities. Without adequate insurance, a single long-term illness or unexpected death can result in significant out-of-pocket costs or unplanned asset liquidation.

Insurance Bridges Gaps Left by Medicare or Government Benefits

Many retirees rely on Medicare, but Medicare doesn’t cover everything, particularly long-term care, dental, vision, or prescription drugs in full. Supplemental insurance may be necessary to fill these gaps and prevent excessive spending.

The Main Types of Insurance to Consider in Retirement

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Let’s break down the key types of insurance and how each can help protect your retirement income and lifestyle.

1. Life Insurance for Legacy, Liquidity & Tax Efficiency

Even in retirement, life insurance plays a strategic role in your overall plan.

Use cases in retirement:

  • Provide liquidity to pay estate taxes
  • Create a legacy for children, grandchildren, or charities
  • Replace lost pension or Social Security income for a surviving spouse
  • Fund long-term care needs through hybrid policies
  • Equalize inheritances in blended families or with business assets

Pro tip: Many retirees opt for permanent life insurance (such as whole or universal life) due to its cash value component and tax-deferred growth.

2. Long-Term Care (LTC) Insurance: Planning for the Inevitable

Someone turning age 65 today has almost a 70% chance of needing some type of long-term care services and supports in their remaining years. Yet traditional Medicare doesn’t cover these services.

What LTC insurance covers:

  • Nursing home stays
  • Assisted living
  • Adult day care
  • Home health aides
  • Memory care

Why it’s vital: The national average cost of a private room in a nursing home is over $100,000 per year—and rising. Without LTC insurance, your retirement savings could evaporate quickly.

Modern options include:

  • Traditional LTC policies
  • Hybrid policies (life insurance or annuities with LTC riders)
  • Asset-based LTC products that return unused premiums to heirs
  1. Annuities: Income for Life

Certain annuities provide a steady income stream that can last for life, alleviating the fear of outliving your savings, a concern for many retirees.

Types of annuities:

  • Fixed Annuities: Guaranteed interest and payouts
  • Indexed Annuities: Returns tied to a market index like the S&P 500 with downside protection

Key benefits:

  • Tax-deferred growth
  • Principal protection
  • Lifetime income riders
  • Beneficiary protection

Word of caution: Annuities can be complex. It’s essential to work with a fiduciary who can explain the pros, cons, fees, and guarantees clearly.

4. Medicare and Medicare Supplement Insurance (Medigap)

Medicare is foundational for most retirees, but it doesn’t cover everything. Medicare Supplement (Medigap) plans can help reduce out-of-pocket expenses and cover services like hospital deductibles, foreign travel emergencies, and coinsurance costs.

Additionally, Medicare Advantage and Part D prescription drug plans should be reviewed annually to help ensure they still fit your needs.

Pro tip: Your health status, prescription needs, and travel goals should all factor into your Medicare choices—and a fiduciary advisor can help you navigate them.

How the Fiduciaries at Agemy Financial Strategies Can Help

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At Agemy Financial Strategies, our fiduciaries take a comprehensive and education-first approach to retirement planning, including insurance.

Unlike brokers or product-driven advisors, our fiduciaries are legally and ethically obligated to act in your best interest. That means we evaluate insurance objectively, ensuring it fits your unique retirement goals and not someone else’s commission structure.

Here’s what working with Agemy’s fiduciary team looks like:

1. Holistic Insurance Evaluation

We examine all aspects of your retirement plan—income sources, lifestyle needs, healthcare risks, estate goals—to assess what insurance coverage may be necessary or redundant.

2. Policy Optimization & Cost Review

Already have policies? We review them for:

  • Relevance
  • Cost-effectiveness
  • Performance
  • Beneficiary accuracy
  • Alignment with your overall plan

3. Education Over Sales

Our fiduciaries are educators, not salespeople. We’ll walk you through your options and explain the implications of each so you can make informed, confident decisions.

4. Strategic Integration

Insurance should enhance—not complicate—your financial picture. We help ensure your insurance coverage works in concert with your investments, income, estate plan, and risk tolerance.

5. Annual Check-Ins

Life changes, and so should your plan. We provide ongoing updates and reviews so your strategy remains aligned with your goals and needs.

Take Charge This Insurance Awareness Day

As you reflect on your retirement goals this Insurance Awareness Day, ask yourself:

  • Am I protected from major financial risks in retirement?
  • Do I have a strategy for long-term care or rising healthcare costs?
  • Are my insurance policies current, cost-effective, and aligned with my estate plan?
  • Am I working with an advisor who prioritizes my best interests?

If you’re unsure—or simply want clarity—now is the time to act. Insurance can be your retirement plan’s missing piece—and Agemy Financial Strategies is here to help you fit it perfectly into place.

✅ Schedule Your Complimentary Retirement & Insurance Review Today

Let our team of fiduciary advisors help you create a smarter, safer retirement strategy that accounts for both your growth potential and your need for protection.

🔒 Protect your income. Preserve your legacy. Retire with confidence.
📅 Book your appointment with Agemy Financial Strategies today.

Frequently Asked Questions About Insurance in Retirement

1. Do I need life insurance if my mortgage is paid off and my kids are grown?

Yes—life insurance can still be valuable for covering estate taxes, funeral costs, or passing on wealth. It’s also helpful in blended families or charitable giving strategies.

2. Is long-term care insurance worth the cost?

If you have significant retirement savings, LTC insurance can help protect those assets from being depleted by future care needs. Hybrid policies may also return unused benefits to your heirs.

3. Should I get an annuity if I already have a pension?

Maybe. Certain annuities can help supplement your income or provide a hedge against inflation and market risk. But it depends on your cash flow needs, longevity expectations, and other assets.

4. What’s the difference between Medigap and Medicare Advantage?

Medigap supplements Original Medicare with fewer out-of-pocket costs but requires separate drug plans. Medicare Advantage rolls all services into one plan but may have more restrictions and networks.

5. How do I know if an insurance product is right for me?

Work with a fiduciary advisor—like those at Agemy Financial Strategies—who is not incentivized by commissions and will analyze whether the policy serves your best interest.

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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The Best-Kept Retirement Secrets

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When most people think about retirement, they imagine freedom, travel, family time, and enjoying the fruits of a lifetime of hard work. But beneath those dreams often lies a lingering fear: “Will I run out of money?”

The truth is, many retirees are making the same critical mistake—they’re chasing growth in the stock market rather than securing reliable income. And that mistake can cost them not just peace of mind, but their entire retirement lifestyle.

Here’s what the smartest retirees know—and what most financial advisors don’t tell you: The key to a stress-free retirement isn’t about how much money you’ve saved, it’s about how much income your portfolio can generate.

Welcome to the retiree’s best-kept secret.

Why Income, Not Growth, Is the Foundation of a Secure Retirement

Retirement Secrets

Most financial professionals build retirement plans around the idea of accumulating a large nest egg, usually invested heavily in growth stocks or mutual funds. The assumption is: “If the market keeps growing, your portfolio will too.”

But here’s the flaw: The market doesn’t grow in a straight line.

There are up years and down years. And if you’re withdrawing money from your portfolio during a down year, you’re not just losing value—you’re locking in losses and reducing your future income potential.

Instead, retirees should be thinking like landlords. Just as landlords collect rent month after month, regardless of the housing market’s value, retirees can—and should—collect steady income from investments designed to pay them regularly.

What Does Income-Based Retirement Look Like?

An income-first retirement strategy focuses on building a portfolio of assets that generates reliable, predictable cash flow. These include:

This approach means your lifestyle isn’t dependent on whether the S&P 500 is up or down. You’ll know what’s coming in, month after month, year after year.

It’s not about growth—it’s about certainty.

How Is This Different from Traditional Retirement Planning?

Retirement Secrets

Let’s look at a typical growth-based portfolio. If your $1.5 million nest egg is invested in stocks yielding 2%, you’ll get just $30,000/year in income. The rest depends on market gains, which can be unpredictable.

With an income-focused approach? That same $1.5 million could potentially generate $90,000/year in contractual or dividend income, and possibly more if actively managed for value.

And thanks to compounding and strategic trading, that “extra” 1–2% return each year could translate into over $300,000 in additional earnings over a decade.

Why Haven’t You Heard About This?

Because it doesn’t benefit Wall Street.

Wall Street firms make money whether you gain or lose, as long as your money stays invested. Their priority is assets under management, not the outcome of your retirement.

And frankly, many advisors simply don’t know how to build income-generating portfolios. The skill set required is different, more hands-on, and requires deep expertise in bonds, credit markets, and alternative income vehicles.

This is where Agemy Financial Strategies comes in.

How Agemy Financial Strategies Can Help

Retirement Secrets

At Agemy Financial Strategies, we’ve been helping retirees enjoy stress-free retirements for over 30 years. We believe that everyone deserves a retirement defined by confidence, not anxiety.

Here’s how we do it:

✔ Income-First Planning: We prioritize building portfolios that generate contractual, predictable income, not just paper gains.

✔ Tactical Investment Management: Our team actively manages your portfolio to buy low, sell high, and capture additional yield—often gaining an extra 1–2% per year through professional trading strategies.

✔ True Diversification: We go beyond ETFs and mutual funds. Our clients enjoy portfolios that are resilient to market chaos and tailored to withstand volatility.

✔ Fiduciary Responsibility: As fiduciaries, we are legally and ethically obligated to put your interests first, not Wall Street’s.

✔ Personalized Retirement Income Plans: You’ll receive a custom roadmap with income projections, retirement milestones, and peace-of-mind calculations—so you know exactly how your money will support your goals.

We call this approach “More Life Than Money”—and we’d love to help you experience it firsthand.

Final Thoughts: Take the “Hope” Out of Retirement

A good retirement plan doesn’t rely on hope.

Hope that the market does well.
Hope that you don’t live too long.
Hope that you won’t outspend your savings.

Retirement should be lived with certainty, not speculation.

The retiree’s best-kept secret is simple: Invest for income, not just growth. And with the right strategy, you can enjoy more than enough income to live the way you want for the rest of your life, without fear of running out.

Frequently Asked Questions (FAQs)

  1. What is the biggest mistake retirees make with their money?
    They stay invested in a growth-oriented portfolio and withdraw funds during market downturns—locking in losses. Shifting to an income-focused strategy helps provide more stability and predictability.
  2. Is income investing safe?
    Income investing can be very safe when diversified and managed properly. It focuses on assets with contractual payouts and less market volatility, potentially offering more consistent returns than growth-only strategies.
  3. Can I still get growth in an income-focused portfolio?
    Yes. While the primary goal is income, your portfolio can still grow. Active management can help provide strategic gains on top of the steady income stream—think of growth as the “icing on the cake.”
  4. What’s the ideal time to switch from growth to income investing?
    Typically, 5–10 years before retirement is the best time to start rebalancing toward income. But it’s never too late to make the shift—even if you’re already retired.
  5. How do I get started with Agemy Financial Strategies?
    Call us at 800-725-7616 or visit www.agemy.com. We’ll set up a free consultation to review your goals and explore how to help you maximize your retirement income.

Ready to make your income work for you?

Retirement Secrets

Call Agemy Financial Strategies at 800-725-7616 for your free copy of the white paper “TR = I + G: The Formula for a More Successful Retirement” and begin your journey toward peace, purpose, and plenty in retirement.

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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Is Your Retirement Strategy Built for an ‘Anything Can Happen’ Financial Landscape?

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Ongoing reports and headlines highlight a mixed economic outlook, with some sectors showing resilience while others face headwinds due to tariffs and uncertainty.

The recent contraction of the U.S. economy by 0.3% in the first quarter of 2025 may appear modest on paper, but for individuals approaching or in retirement, it can serve as a key signal. Even small shifts in economic indicators can have ripple effects across investment markets, interest rates, consumer confidence, and ultimately, your retirement income security.

At Agemy Financial Strategies, we understand that affluent retirees and pre-retirees can’t afford to make reactive decisions based on short-term headlines. Instead, it’s about strategic foresight, proper risk management, and intentional wealth preservation. Here’s what you need to know.

A Closer Look at the Q1 Contraction

The 0.3% dip in GDP followed a period of steady growth, raising concerns about the broader economic trend. Here’s what contributed to the slowdown:

While these may seem like economic metrics for policymakers, they directly relate to retirement strategies, especially for those with significant assets at stake.

Key Areas Where Economic Slowdowns Impact Your Retirement Plan

1. Investment Strategy and Portfolio Diversification

Volatility and contractions in the economy often hit equity markets first—and hardest. For retirees, the priority isn’t chasing returns, but protecting wealth while maintaining sufficient growth.

  • Evaluate your exposure to equities, bonds, and alternative assets.
  • Consider dividend-generating or inflation-hedged investments.
  • Avoid the “sequence of returns” risk by maintaining enough cash or liquid assets to help avoid drawing down principal during market dips.

Agemy Financial Strategies can help review your current allocation and stress test your portfolio against different market scenarios.

2. Interest Rates, Inflation, and Income Streams

In a cooling economy, the Fed may shift to lower interest rates to encourage spending. While this could help borrowing costs, it also has implications for:

  • Fixed-income yields (which may decline)
  • Inflation pressures, especially if supply-chain constraints persist
  • Real purchasing power, particularly for retirees on fixed incomes

It’s essential to align your income strategy with both current interest rates and inflation forecasts. Agemy helps clients integrate TIPS, laddered bonds, and diversified income vehicles to protect purchasing power.

3. Tax Planning in an Evolving Landscape

Lower GDP often prompts fiscal policy adjustments, including potential tax reforms. As your retirement income sources vary—from IRAs to pensions to capital gains—it’s important to assess how changing tax rates might impact:

Our fiduciary advisors at Agemy are experienced in proactive tax strategy to help ensure your income remains as tax-efficient as possible, no matter the economic cycle.

4. Estate Planning Amid Market Volatility

A drop in asset values might affect the total size of your estate. If this impacts your legacy goals, it may be time to:

Volatility can create estate planning opportunities, especially if you anticipate a market rebound or plan to transfer assets to heirs soon.

5. Rising Healthcare Costs and Longevity Risk

In times of economic pressure, federal healthcare funding could face cuts. Meanwhile, costs for long-term care and medical expenses continue to rise, regardless of the economic climate.

A sound retirement plan must account for:

  • Long-term care insurance
  • Health Savings Accounts (HSAs)
  • Medicare and supplemental coverage strategies

Planning for healthcare costs early can help prevent sudden financial strain later.

How to Navigate Economic Uncertainty with Confidence

1. Conduct Regular Portfolio Checkups

Just like your annual physical, your portfolio needs a checkup too. Reviewing it during times of uncertainty helps ensure you’re not overexposed to risk and that your investments are working in your favor.

2. Reaffirm Your Financial Goals

Are your current retirement strategies still aligned with your goals? As economic conditions shift, your financial objectives might need to be adjusted. Agemy’s advisors can help you identify blind spots and fine-tune your plan.

3. Maintain a Long-Term Perspective

Economic contractions, no matter how uncomfortable, are part of a normal business cycle. Staying the course and focusing on your long-term goals helps avoid impulsive decisions that can hurt your retirement outlook.

4. Work with a Trusted Fiduciary Partner

At Agemy Financial Strategies, our fiduciary duty is to put your best interests first. We offer personalized wealth planning that evolves with you and the broader market landscape.

Final Thoughts: Your Retirement Deserves a Resilient Strategy

The 0.3% GDP contraction in Q1 2025 is a reminder that even mild economic changes can have real implications for those nearing retirement. The good news? You don’t have to navigate this alone.

With over 30 years of experience guiding clients through all market conditions, Agemy Financial Strategies helps affluent families, professionals, and retirees adapt, preserve, and grow their wealth in the face of change.

How Agemy Financial Strategies Can Help

In uncertain economic times, your retirement strategy needs more than guesswork—it requires deep knowledge, personalization, and foresight. That’s where Agemy Financial Strategies comes in.

With over three decades of experience guiding affluent individuals and families, our team provides comprehensive, fiduciary-based financial planning focused on long-term security and short-term flexibility.

Here’s how we help you stay on course—even when the economy wavers:

  • Customized Retirement Income Planning: We analyze all your income streams—Social Security, pensions, investments—and structure a reliable, tax-efficient plan to help cover your expenses for life.
  • Strategic Investment Management: Our advisors actively monitor market conditions and adjust your investment mix to help protect against downside risk while capturing growth opportunities when available.
  • Proactive Tax Optimization: We build tax strategies into every part of your plan, including Roth conversions, tax-loss harvesting, and distribution planning to help you keep more of what you’ve earned.
  • Healthcare & Long-Term Care Strategy: Rising healthcare costs are one of retirement’s biggest threats. We help you prepare with smart coverage options, LTC planning, and health savings strategies.
  • Legacy and Estate Planning Coordination: Your wealth should support not only your lifestyle but also your legacy. We collaborate with estate attorneys and CPAs to help align your goals with your estate structure.
  • Stress Testing for Peace of Mind: We run your plan through multiple economic and market scenarios to help ensure your strategy holds up, even if the economy doesn’t.

A Plan That Evolves as Life and the Market Do

At Agemy Financial Strategies, we don’t believe in one-size-fits-all retirement planning. Instead, we take time to understand your lifestyle, your priorities, and your legacy goals, building a roadmap that adapts with you and the world around you.

Ready to strengthen your retirement plan with a team that puts your best interests first?

Schedule a no-obligation consultation today, and let’s build a future that’s as resilient as it is rewarding.

Frequently Asked Questions

Q: What if my retirement portfolio lost value due to the Q1 slowdown?
A: Don’t panic. Reassess your asset allocation and consult with a fiduciary advisor. Market dips can be an opportunity for rebalancing and tax optimization.

Q: Should I consider a Roth conversion now?
A: If you anticipate higher taxes later or if your portfolio temporarily dips, a Roth conversion may be advantageous. Always consult with your advisor before moving forward.

Q: How can I help protect against inflation in retirement?
A: Diversify into inflation-resistant assets like TIPS or real estate. Consider dynamic withdrawal strategies that adjust to inflation.

Q: What healthcare costs should I plan for in retirement?
A: Medicare, supplemental insurance, and long-term care expenses. Begin planning early to help ensure you can cover these costs without compromising your lifestyle.

Q: Is now a good time to gift assets to my heirs?
A: If asset values are temporarily down, it could be an ideal time to transfer wealth while minimizing tax implications. Discuss this with your financial advisor.

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 Much Do I Need to Retire Comfortably in 2025?

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Retirement is no longer a distant dream—it’s a financial milestone that requires careful planning, especially in a changing economic climate like 2025.

One of the most common questions we hear at Agemy Financial Strategies is: “How much do I really need to retire comfortably?”

The answer? It depends on your lifestyle, health, location, tax exposure, and goals. In this guide, we’ll help you explore what “comfortable” really means and how much it might take to get there in today’s economic environment.

Defining “Comfortable” Retirement for the Wealthy

Only 27% of Americans feel very confident in their ability to maintain a comfortable retirement lifestyle, according to this EBRI Study.

So why are so few assured they’re on the right track?

The average American might target $1 million to $1.5 million for retirement. But for high-net-worth individuals, the equation is far more nuanced.

Comfort, in your case, often includes:

  • Multiple properties or vacation homes

  • Extended travel (domestic and international)

  • Financial support for adult children or grandchildren

  • Gifting and philanthropic goals

  • Concierge healthcare or long-term care services

  • Ongoing investment and business interests

  • Legacy planning and wealth transfer strategies

These ambitions require far more than average savings. They demand proactive planning, liquidity, and insulation from market, tax, and longevity risks.

What the Numbers Say in 2025

In 2025, the retirement landscape for HNWIs is more complex than ever. Here’s what you’re up against:

  • Inflation: Core inflation remains elevated, eroding purchasing power over time. A luxury lifestyle that costs $300,000 annually today may exceed $500,000 in two decades.

  • Longevity: High-net-worth retirees tend to live longer, with many planning for a 30-year retirement or more.

  • Healthcare Costs: According to a recent report, a 65-year-old couple can expect to spend over $330,000 on healthcare in retirement—and that doesn’t include long-term care or private medical services.

  • Tax Law Sunset: The 2026 tax law sunset could dramatically alter planning needs for HNWIs. Provisions of the 2017 Tax Cuts and Jobs Act are set to expire in 2026, meaning today’s favorable estate and income tax rules could soon disappear.

  • RMD Planning: For those with large retirement accounts, Required Minimum Distributions (RMDs) can create substantial tax burdens if not managed strategically.

3 Key Questions to Ask Yourself

Before determining your “magic number,” ask:

1. What lifestyle do I want to maintain?
Estimate annual expenses for travel, real estate upkeep, insurance, taxes, and discretionary spending.

2. What risks must I hedge against?
Consider market volatility, rising healthcare costs, longevity risk, and tax uncertainty.

3. What legacy do I want to leave?
Wealth transfer, charitable foundations, and multigenerational support can significantly affect how much you need.

A Closer Look at Retirement Spending for HNWIs

Many affluent retirees underestimate just how much their lifestyle costs, especially when it involves more than one home, frequent travel, or private schooling for grandchildren.

Expense Category

Estimated Annual Range (HNWIs)

Core Living Expenses

$150,000 – $300,000+

Travel & Leisure

$50,000 – $150,000+

Property Maintenance

$25,000 – $100,000+

Philanthropy/Gifting

$20,000 – $250,000+

Healthcare & Insurance

$30,000 – $100,000+

Wealth Advisory Fees

Varies (0.5% – 1% of AUM)

Note: The estimated spending ranges provided are illustrative and based on aggregated insights from financial industry sources, based on aggregated data from Fidelity, Schwab, UBS, the Spectrem Group, and high-net-worth lifestyle spending reports featured in publications such as Barron’s, Forbes, and CNBC Wealth. Actual expenses will vary based on individual circumstances, lifestyle choices, geographic location, and health status. These figures are intended for educational purposes and do not constitute personalized financial advice.*

How Much Capital Do You Need? The 4% Rule Isn’t Enough

The traditional “4% rule” suggests withdrawing 4% annually from your retirement savings to avoid running out of money. For a $10 million portfolio, that would provide $400,000 per year.

But the 4% rule was built on historical data that may not hold in today’s economy. Instead, consider:

  • Tax drag: Withdrawals from pre-tax accounts may be reduced by 30%+ in taxes.

  • Lifestyle inflation: Expenses tend to rise in the early and late stages of retirement.

  • Market conditions: Sequence of returns risk could derail early retirement years.

  • Long-term care needs: Costs that can exceed $100,000/year if private or specialized.

Many HNWIs aim for a 3% or lower withdrawal rate, which means you’ll need $12–15 million in investable assets to support a $350,000+ annual lifestyle with added flexibility.

Asset Allocation for a Comfortable Retirement

Preserving and growing wealth during retirement requires balance:

  • Income-generating assets: Dividend-paying stocks, municipal bonds, and real estate.

  • Tax-efficient vehicles: Roth IRAs and charitable trusts.

  • Growth potential: Carefully selected equities, private equity, and alternatives.

  • Protection: Insurance products, structured notes, and guaranteed income strategies.

Consider reflecting both your lifestyle ambitions and your desire for capital preservation.

Planning for Longevity and Legacy

For high-net-worth retirees, the goal is often twofold:

  1. Help ensure income for life.

  2. Transfer wealth tax-efficiently.

Considerations for Long-Term Planning:

  • Trusts to shield assets from probate and help minimize estate taxes.

  • Gifting strategies to help reduce taxable estate while supporting heirs during your lifetime.

  • Charitable giving through donor-advised funds or private foundations.

  • Life insurance for liquidity and legacy leverage.

Without strategic planning, taxes could significantly reduce what your heirs receive, especially with estate tax exemptions set to drop in 2026.

Taxes: The Hidden Retirement Threat

It’s also important for high-net-worth retirees to be vigilant about taxes. RMDs, capital gains, and income from investments can push you into the highest tax brackets—even in retirement.

Strategies to Consider in 2025:

Your retirement plan should include a tax strategy that anticipates law changes and helps minimize lifetime tax liability.

How Agemy Financial Strategies Can Help Retirees Thrive

At Agemy Financial Strategies,we’re experienced in helping affluent individuals and families design a retirement strategy as unique as their lives. We understand the complexities of preserving multi-million-dollar portfolios, managing tax liability, and helping protect wealth for future generations.

Here’s what we offer:

We don’t believe in one-size-fits-all planning. We believe in personalized, proactive wealth strategy built on trust, transparency, and long-term vision.

Final Thoughts: What’s Your Number?

There’s no single dollar amount that defines a “comfortable retirement” for high-net-worth individuals. For some, $5 million in assets is enough. For others, it’s $20 million or more. The real question isn’t just how much, but how well your wealth is positioned to support your future.

The earlier you begin planning—or adjusting—the more control you’ll have.

Ready to Define Your Retirement Number?

📞 Schedule a private strategy session with Agemy Financial Strategies today.
Let’s help you retire not just comfortably, but confidently.

Frequently Asked Questions

1. How much does a high-net-worth individual really need to retire comfortably in 2025?
It depends on your lifestyle, spending goals, and family legacy plans. Many HNWIs aim for $10–20 million in investable assets to generate $300,000+ in annual income, help preserve purchasing power, and leave a meaningful legacy.

2. Should I still be concerned about taxes in retirement if I’ve already accumulated wealth?
Yes. Large RMDs, capital gains, and income distributions can push you into top tax brackets. Without proactive planning—like Roth conversions, QCDs, or charitable trusts—your tax exposure could erode long-term wealth.

3. What role does longevity play in my retirement number?
Affluent individuals often have access to better healthcare and longer life expectancy. Planning for a 30- to 35-year retirement helps ensure you won’t outlive your savings or compromise your lifestyle in later years.

4. How should I adjust my asset allocation once I retire?
Your portfolio should shift toward income-generating, tax-efficient, and lower-volatility assets, while maintaining enough growth potential to keep pace with inflation and evolving spending needs.

5. How can Agemy Financial Strategies help high-net-worth individuals plan for retirement?
We’re experienced in advanced retirement income strategies, tax mitigation, legacy planning, and personalized wealth management. Our fiduciary approach helps ensure your plan is built to preserve, protect, and grow your wealth for decades to come.

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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Navigating Retirement in a Shifting Economy

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How Tariffs, Trade Wars, and Federal Policies Impact RMDs and Roth IRAs

As 2025 unfolds, the global economic landscape continues to present new challenges for retirees. Market volatility, trade disputes, and shifting federal policies have all introduced fresh risks—particularly for those managing IRAs, 401(k)s, and non-qualified retirement accounts.

At Agemy Financial Strategies, with offices in Connecticut and Colorado, we’re committed to helping retirees protect and preserve their wealth, especially during uncertain times. This week, we’re breaking down seven key areas every retiree should know to weather this economic storm and maintain control over their financial future.

1. Roth Conversion Success in a Down Market

Market downturns can be a hidden opportunity—particularly for Roth conversions. When your traditional IRA or 401(k) is temporarily reduced in value, converting those assets into a Roth IRA can result in a lower tax burden. Once in a Roth, your assets grow tax-free, and future withdrawals are tax-free as well.

🧠 Tip: Roth conversions are even more powerful when paired with a long-term strategy for managing tax brackets, Social Security timing, and RMD coordination. Listen to our Financial Strategies podcast on ‘Roth IRAs Rebooted’, here.

2. SECURE Act 2.0: What You Need to Know

Effective January 1, 2023, the SECURE Act 2.0 introduced sweeping changes to retirement planning. Key updates include:

  • RMD age increase: Now 73 (and rising to 75 in 2033), giving retirees more time to grow their assets tax-deferred.
  • Higher catch-up contributions: Those aged 60–63 can now contribute more to retirement accounts.
  • Auto-enrollment in 401(k)s: New employer plans must auto-enroll eligible employees.

🔍 Strategy: Use the extended RMD window to explore Roth conversions and reduce future tax liabilities.

3. New 2025 RMD Table: How to Calculate Correctly

The IRS has updated its RMD tables to reflect longer life expectancies. That means lower annual withdrawal amounts, which can help your portfolio last longer—but only if you calculate correctly.

How It Works: Divide your retirement account balance as of December 31 of the previous year by the life expectancy factor from the IRS table.

📌 Penalty Alert: Missing or miscalculating your RMD can result in a 25% excise tax penalty—a costly mistake that can be avoided with proper planning.

4. Avoid the 25% RMD Penalty Pitfall

Under the SECURE Act 2.0, the old 50% penalty for missed RMDs has been reduced to 25%—and even 10% if corrected quickly. But prevention is the best strategy.

✔️ Action Step: Work with a fiduciary advisor to ensure you’re using the correct RMD tables and timing to avoid this penalty altogether.

 
5. Beneficiary Designation Tips: Stretch IRAs and 401(k)s

Thanks to recent changes, inherited retirement accounts now follow a 10-year rule—eliminating the lifetime “stretch” for many beneficiaries.

What You Should Do:

  • Review all beneficiary designations annually
  • Consider naming a trust for complex family situations
  • Understand how SECURE Act rules affect inherited IRAs and 401(k)s

🏛️Estate Tip: Improper beneficiary planning can result in unnecessary taxes or legal battles.

6. Navigating Tariffs, Trade Wars, and Federal Policy Risks

Tariffs and trade conflicts can ripple through markets, impacting retirement portfolios in unexpected ways. Retirees with heavy exposure to international equities or manufacturing sectors may feel the brunt of these shifts.

🔄 Mitigation Strategy: Diversify across sectors and asset classes. Ensure your portfolio is flexible enough to respond to federal policy changes, such as interest rate hikes or economic stimulus measures.

7. Customized Retirement Portfolio Allocation Built for Today’s Economy

At Agemy Financial Strategies, we understand that today’s retirees need more than generic advice—they need a customized investment approach that evolves with the economy. That’s why we’ve spent over 35 years helping clients safeguard their savings with forward-thinking, tax-efficient, and risk-conscious portfolio strategies.

In 2025, market conditions are more unpredictable than ever—shaped by trade tensions, inflation, and federal policy shifts. Our fiduciary-led firm and financial strategies are specifically designed to weather these changes, helping protect your wealth while generating the income you need to enjoy retirement.

Here’s how we can help:

  • Tailored Portfolio Construction: We work with you to align your investments with your risk tolerance, income goals, and legacy wishes.
  • Market-Adaptive Strategies: Our team proactively adjusts portfolios based on real-time economic shifts, including interest rate hikes, policy changes, and trade disruptions.
  • Income Planning: We help turn your accumulated assets into a reliable stream of retirement income—monthly, quarterly, or annually—so you never have to guess where your next paycheck is coming from.
  • Tax Efficiency: From Roth conversions to RMD strategies, we build your retirement plan with tax-smart moves that can help preserve more of your nest egg.
  • Personalized Guidance: Whether you’re in Connecticut or Colorado, our fiduciary advisors are here to provide clarity, confidence, and care every step of the way.

Bonus: What Investment Tools Support Your Income Goals?

Choosing the right mix of retirement tools can help turn your savings into dependable monthly, semi-annual, or annual income—while addressing risks like longevity and market downturns.

Consider:

  • Certain annuities (not all annuities are built the same, so ensure you speak to your trusted advisor about risk tolerance and types of annuities before committing. Watch our YouTube show dedicated to annuities here.)
  • Dividend-paying funds
  • Tax-free municipal bonds
  • Structured notes (for defined-risk strategies)

Remember: Not all investment tools are suitable for every retiree—customization is key.

Final Thoughts: Take Control in Uncertain Times

As we celebrate 35 years of excellence, we remain as committed as ever to helping you thrive in retirement—no matter what the markets do next.

Retirement planning in 2025 is not about guessing—it’s about strategic decision-making based on real data, legal changes, and global events. From tariffs and trade wars to federal policy shifts and market volatility, today’s retirees face a lot of moving pieces.

But with the right plan—and the right partner—you can turn complexity into clarity.

Book your consultation today and let us help you protect your future with precision, purpose, and fiduciary care.

Frequently Asked Questions (FAQs)

Q: How do tariffs affect my retirement investments?
A: Tariffs can trigger market sell-offs, particularly in sectors like manufacturing or global trade. Diversifying your portfolio and rebalancing regularly can help reduce exposure.

Q: What’s the benefit of Roth conversions during a market dip?
A: You convert assets at a lower value, potentially lowering the tax cost and maximizing long-term tax-free growth.

Q: How often should I check my RMD calculation?
A: Annually. Your balance and life expectancy factor will change each year, affecting your required distribution amount.

Q: Can I avoid the RMD penalty?
A: Yes. Filing a timely correction and working with a fiduciary advisor to track RMDs can help you avoid or reduce penalties.

Q: What makes Agemy Financial Strategies different?
A: As fiduciaries, we’re legally obligated to act in your best interest. Our customized strategies focus on wealth preservation, income generation, and long-term success in any market condition.

 

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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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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Is Your Retirement at Risk? 5 Key Threats You Should Know

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Planning for retirement is a complex journey, with numerous factors influencing your financial security. While a single issue may not derail your plans, a combination of common yet often overlooked risks can significantly impact your retirement outlook.

A recent study found that nearly half of American households could run out of money in retirement if they cease working at 65. Understanding these hidden threats and taking proactive steps to mitigate them can mean the difference between a secure, fulfilling retirement and one filled with financial stress.

In this blog, we’ll uncover five major risks to your retirement that you won’t want to ignore. We will share how tips for strategic planning can help you navigate these challenges, allowing you to retire on your terms with more confidence and peace of mind.

1. Poor Asset Allocation: Finding the Right Balance 

Improper asset allocation is one of the biggest risks to retirement savings. Many assume retirement demands a dramatic shift to conservative investments like bonds or cash equivalents. While reducing risk is wise, going too conservative can also hinder your savings growth, leaving you vulnerable to inflation. 

A recent study was conducted to gain insight into investors’ alternative investments in workplace retirement savings plans. The study revealed solid interest in private assets despite a significant knowledge gap. Among those who expressed interest in private investments, most would take a measured approach with their retirement plan allocations (Schroders):

  • 52% would allocate less than 10% to private assets.
  • 34% would commit between 10-15%.
  • 8% would invest more than 15%.
  • 6% are unsure how much they would allocate to private assets.

The ideal asset mix depends on individual goals, time horizon, and risk tolerance. Partnering with a fiduciary advisor can help you find the optimal balance and craft a plan that adapts to market conditions and personal changes. This approach can help keep your portfolio resilient and aligned with long-term goals.

2. Running Into Unexpected Expenses

When unexpected expenses arise, they can significantly affect your long-term financial health, particularly in retirement. These unplanned costs can quickly deplete your retirement savings, whether it’s a medical emergency, family support, or sudden home repairs. Nearly 6 in 10 (59%) U.S. adults feel unprepared for financial emergencies, indicating a widespread need for better financial planning.

This highlights the importance of a well-structured emergency fund. An emergency fund acts as a financial buffer, allowing you to manage surprise expenses without jeopardizing your retirement accounts. Building and maintaining this fund requires careful planning. With professional support, you can establish a cushion that shields your retirement savings from unplanned withdrawals, helping ensure your long-term financial security stays intact.

3. Being Part of the Sandwich Generation

The “Sandwich Generation” refers to adults simultaneously supporting aging parents and children, a responsibility that can strain financial resources and delay retirement goals. Juggling these family obligations often means taking on additional healthcare, education, and living expenses, leaving less room for retirement savings. 

In fact, 90% of Sandwich Generation adults report making a lifestyle change or financial decision because of caregiving responsibilities. Setting boundaries and establishing a structured financial plan is essential for those in this position. Prioritizing retirement savings while supporting family members can help safeguard long-term financial security.

A fiduciary advisor can provide valuable support by developing a balanced plan tailored to your situation. This personalized guidance can make a significant difference in helping maintain financial stability for both your loved ones and your future.

4. Long-Term Care Expenses: Protecting Against Rising Healthcare Costs

Long-term care remains a significant concern for retirees, with the U.S. Department of Health and Human Services estimating that 70% of people turning 65 will need some form of long-term care in their lifetime. Unfortunately, Medicare provides limited coverage for these services, and long-term care insurance can be costly. Planning for these potential expenses is crucial to helping safeguard your retirement savings.

The 2024 American Association for Long-Term Care Insurance (AALTCI) annual Price Index survey shows that the average annual premium for a $165,000 benefit policy without inflation protection is $950 for a single 55-year-old male and $1,500 for a single 55-year-old female. For a 55-year-old couple, the average combined annual premium reaches $2,080. These figures highlight the financial impact of securing long-term care coverage and the importance of including these costs in retirement planning.

A fiduciary advisor can help you navigate various funding options for long-term care, such as health savings accounts (HSAs), hybrid insurance policies, and setting aside dedicated assets within your retirement plan. With a fiduciary’s guidance, you’ll have access to strategies designed in your best interest, helping ensure these costs won’t drain your retirement funds and that you’re better prepared for the future.

5. Ignoring the Impact of Inflation 

One of the most common yet underestimated threats to retirement savings is inflation. Over time, inflation erodes the purchasing power of your money, meaning that the same dollar buys less and less each year. For example, if inflation averages just 3% annually, in 20 years, you’ll need nearly twice as much money to maintain the same standard of living. For retirees, this steady cost increase can severely strain savings, particularly when living on a fixed income.

Ignoring inflation’s impact on retirement planning can lead to a financial shortfall when it matters most. Understanding the long-term impact and incorporating strategies to help protect your purchasing power is essential. Working alongside a fiduciary can help you build a portfolio that includes inflation-resistant assets aimed at outpacing inflation over time. By planning and adjusting your portfolio as needed, you can retain the ability to meet rising costs without compromising your financial security in retirement.

Planning for a Secure Retirement with Agemy Financial Strategies

A secure retirement doesn’t happen by chance; it requires proactive planning and a clear understanding of the risks that lie ahead. Andrew Agemy, Owner and CEO of Agemy Financial Strategies, emphasizes the importance of a client-focused approach. “Our focus is on serving our clients with an educational process and listening with our hearts, not just our ears. This empowers our clients to make and realize their own solid financial decisions and allows them to remain in control.”

Here is how our team can help you navigate these challenges with confidence:

  • Customized Plans: Every individual has unique retirement goals and concerns. We work closely with you to develop a plan tailored to your financial situation.
  • Comprehensive Risk Management: From asset allocation to healthcare costs, we address each aspect of retirement to help ensure you’re prepared for potential risks.
  • Ongoing Support: Retirement planning is an evolving journey. As market conditions and personal circumstances change, we adjust your strategy to align with your goals.

With Agemy Financial Strategies by your side, you can build a retirement plan designed to empower you and support a financially secure future.

Final Thoughts

Understanding and addressing these five critical retirement risks can make a significant difference in securing a comfortable, worry-free future. By taking proactive steps to help protect your savings and working with a knowledgeable fiduciary advisor, you can be better prepared to navigate unexpected challenges and achieve your retirement goals.

At Agemy Financial Strategies, we’re committed to helping you build a retirement plan that aligns with your vision and financial needs. With our personalized approach, you can plan confidently, knowing you’re well-prepared for the future.

Contact us today to start planning a retirement that fulfills your dreams and provides peace of mind.

Frequently Asked Questions

Q: How can I be sure my retirement plan is on track?
A: Regularly reviewing your retirement plan is essential to staying on course. At Agemy Financial Strategies, we offer ongoing support and periodic reviews to help your plan adapt to changes in market conditions, tax laws, and your personal financial situation. These reviews help you stay aligned with your long-term goals.

Q: What if I don’t know how much I’ll need for retirement?
A: Determining your retirement income needs is a common challenge. Our team at Agemy Financial Strategies helps you estimate these needs by examining your current expenses, desired lifestyle, and potential future costs like healthcare and long-term care. This process gives you a clearer picture of the savings required to maintain your lifestyle.

Q: How do you approach healthcare and long-term care costs?

A: Healthcare and long-term care expenses can be significant in retirement. We explore various options with you, including health savings accounts (HSAs), long-term care insurance, and retirement assets earmarked for medical needs. Planning for these costs in advance helps reduce their impact on your savings.

Q: How does Agemy Financial Strategies help manage inflation risks?

A: Inflation can erode the purchasing power of your savings over time. To combat this, we build inflation-resistant elements into your portfolio, such as stocks, bonds, and other investments that aim to outpace inflation. This approach helps protect your wealth and maintain your standard of living in retirement.

Q: What is the advantage of working with a fiduciary advisor?

A: As fiduciary advisors, we are legally and ethically committed to putting your best interests first. This means that all our recommendations are based solely on what’s best for you, with no conflicts of interest. Our goal is to provide transparent, objective guidance to help you achieve a secure and fulfilling retirement.

Disclaimer: The information provided in this blog is for educational purposes only and should not be taken as specific retirement or investment advice. Retirement and investment strategies should be tailored to each individual’s financial situation, goals, and risk tolerance. Before making any changes to your retirement investments, consult our qualified advisors to ensure these decisions align with your personal retirement objectives.

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