Retirement has changed. On average, people live longer. They work longer. They are healthier and active in their older years. And they have plans — travel, family, new hobbies. Designing a retirement plan specifically for how you want to spend your later years can give you the comfort of knowing you can enjoy your new freedom however you want. CSB wealth managers can help you focus on strategies that provide financial security and give you the flexibility to adapt as your needs evolve.
Financial Planning for Retirement: Thinking Beyond Savings
Traditionally, retirement planning focused primarily on saving money. Today, retirement planning is a lot more complicated and goes beyond just accumulating wealth. It includes developing strategies for:
- Investing and protecting your assets.
- Reducing your tax burden.
- Timing withdrawals from different accounts.
- Managing changing healthcare needs.
- Allowing you to live comfortably into your later years without the stress of exhausting your wealth or burdening your family.
We can also help you make smart decisions on:
- Phasing into retirement. Just because you retire doesn’t mean you have to stop working. It may mean working differently — consulting or working part-time or on your own schedule. Keeping your mind active can lead to a healthier retirement and can make retiring easier.
- Big goals. You may want to travel or invest in a second home during retirement. We can help you structure your retirement plan to account for your big goals, whatever they may be.
- Legacy planning. How do you want to pass wealth on to family or charitable causes? We can help with unique strategies that maximize your legacy giving.
- Location. Whether you’re planning to retire in Des Moines or move across the country, where you live can affect your taxes in retirement. We can help you make smart choices if you’re considering moving — or just snow-birding during the cold winter months.
Do You Have a Retirement Withdrawal Strategy?
Knowing when to start taking withdrawals from different retirement accounts in the most wealth-sustaining way can be a puzzle. A poorly planned strategy can increase your taxes, subject you to penalties and, ultimately, drain your life’s savings sooner than necessary.
How Can We Help You Optimize Your Retirement Withdrawal Strategy?
- Social Security timing. You can start receiving Social Security payments as early as your 62nd birthday. But, by waiting even just a few years, you can increase the payments. We can help you decide whether taking your payouts earlier or later makes the most sense for you.
- Planning for required minimum distributions (RMD). Your retirement accounts — including 401(k) and traditional IRAs — require you to take minimum distributions beginning in your 70s. But having a withdrawal plan before that can help you maximize your nest egg and allow you to consider how non-retirement assets are used.
- Tax diversification. You can minimize and/or spread your tax liability by having a strategy that leverages the benefits of different types of accounts, including tax-free like Roth IRAs and Roth 401(k)s, and tax-deferred or taxable accounts.
A Proactive Approach to Medicare Planning
Healthcare is one of the most complicated — and important — considerations in retirement. It’s no surprise that as you get older, you tend to have more need for healthcare. But when you become eligible for Medicare, it’s important to understand your options and how the decisions you make affect your finances. Having worked with many clients, we can share insights and smart strategies to align your Medicare choices with your situation.
- Enrollment periods. Avoid late penalties by enrolling during open enrollment periods.
- Choosing the right plan. Original Medicare or Medicare Advantage? Part A, Part B, Part C, Part D? What does it all mean, and what’s right for you?
- Private insurance. Do you have access to private insurance? How does that factor into your planning?
- Long-Term Care Insurance. While not Medicare, it may be worthwhile to determine your need for long-term care insurance.
If you’re looking for retirement planning in Des Moines, in Iowa or in the Midwest, let’s talk.