Lifetime Income Needs
You’ve saved and invested your whole life; now may be the time to convert your nest egg into a sustainable lifetime income. That’s our specialty at Empowered Retirement, and we manage the Sequence of Return Risk to avert potentially significant portfolio erosion.
With advancements in science & medicine, women who are healthy at age 65 have a 50% chance of living beyond age 88, and a 25% chance of living beyond age 94. Are you confident your money will last that long; ie, as long as YOU do?
Your retire, your MONEY shouldn’t!
And with the prospect of increased inflation in the coming years, your purchasing power can easily be eroded without proper planning.
I remember nickel ice cream cones, 29 cent gas. I paid twice as much at age 24 for my CAR than my parents paid for their HOUSE!
We are attentive to PURCHASING POWER, at Empowered Retirement, Inc. The return on your investments is only accurately assessed in relation to what your money can DO for you; what your money can BUY.
We take great care in discerning what mix of stocks, bonds and alternative investments will both fit with your risk tolerance as well as provide the every increasing cash flow stream that will fund your lifestyle.
Health Care Needs
Longer life spans can also translate into more health issues that may rise in the process of your aging. While the federal government provides a safety net in the form of Medicare, it may not provide the coverage needed especially in chronic illness cases.
Planning for long-term care, in the event of a serious disability or chronic illness, is becoming a key element of retirement plans today. We discuss options of insuring the risk of your needing long-term care verses your deciding to self-insure; there’s no one right answer.
Planning for your transfer of assets at death is a critical element of retirement planning, especially if there are survivors who are dependent upon your assets for their financial security.
Estate planning can be as simple as drafting a will, which is essential to ensure that assets are directed to the people and charities of your choice, and ensuring your beneficiary designations are current, in order that those ‘qualified monies’; i.e., IRAs, 401(k)s, 403(b) assets, as well as annuities and life insurance pass to the exact people you intend to benefit. These assets pass OUTSIDE your will, so it’s imperative to dovetail these beneficiary designations and the percentages of assets to be inherited, with other estate assets that would otherwise pass according to one’s will OR the laws of the state in which you reside, if you may die intestate (without a will).
It is especially prudent to utilize sophisticated strategies to reduce inheritance and other death taxes, on larger estates. Additionally, effective planning will limit potentially exhaustive estate settlement costs.
The unusually high threshold for estate taxation currently has lulled some people into a false sense of security that no planning is necessary, as no estate tax would be due at their death.
We can assure you that the exercise of Estate Planning and effective wealth transfer is FAR more vast and wide-sweeping than any Federal (or State) Estate tax.
Social Security was established in the 1930’s as a safety net for people who, after paying into the system from their earnings, could rely upon a steady stream of income for the rest of their lives. The Normal Retirement Age; i.e., when a person could draw their maximum benefit, used to be age 65.
Now, for a person born after 1937, the normal retirement age is being increased gradually until it reaches age 67 for all people born in 1960 and beyond. The amount paid in benefits is based upon the earnings of an individual while working.