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Retirement Planning

Retirement Planning: Secure Your Financial Future with Joffrey Smith Financial Group

Are you ready to embark on a worry-free retirement journey? At Joffrey Smith Financial Group, we understand that retirement planning is not just about saving money; it's about securing your financial future. We are here to guide you every step of the way, helping you make informed decisions and tailor a retirement plan that aligns with your unique goals and risk tolerance. Let’s take a look at some of the milestones or phases you may go through along your financial journey.

Beyond the Summit: Navigating Finances in Retirement

Beyond the Summit: Navigating Finances in Retirement

29,032 feet: That is the height of Mount Everest, the world's tallest mountain. Many people make it a life mission to summit the mountain of epic proportions. By the end of the 2022 climbing season, more than 6,000 brave and somewhat crazy individuals had successfully climbed to the top of this historic peak. The climbers who embark on Mount Everest are some of the world's most skilled, educated, and qualified climbers. They practice and prepare for years before a climb.

Here's the morbid part. According to leading resources on Mount Everest mountaineering, more than 310 deaths have occurred due to climbing expeditions. However, the part you perhaps don't know is only 15 percent of those deaths occur while climbing up to reach the mountain summit. The vast majority prepare vigilantly to ascend Mount Everest but fail to focus on the impending journey down the treacherous peak. During the 1996 climbing season, 15 climbers lost their lives, eight of which were on the same day. How many of those deaths could have been prevented if the importance of descending was focused on as much as ascending the mountain?

Famous climber Ed Viesturs once said, "Getting to the summit is optional; getting down is mandatory." When climbing Mount Everest, the summit is merely a halfway point. When you reach it, you've accomplished something amazing, but you have also grown fatigued, cold and are at maximum risk.

Beyond the Summit: Navigating Finances in Retirement

The same holds true in your financial lives. How many people have reached a financial "summit" and can successfully retire? They made it, are in or close to retirement, and tentatively feel safe and secure. However, can they make it through retirement? Remember, getting down is mandatory.

Ninety percent of the financial industry focuses on reaching a summit. Hundreds of vehicles, thousands of products, and most advisors focus on getting clients to retirement. But now what? Getting down is mandatory. Running out of money, living longer than expected, increased taxes and inflation, long-term care, and an overall subjection in their financial lives to layers of volatility is no way to descend. This is where I enter the picture. I am my clients' hero, their descent coach, their "financial Sherpa."

The Accumulation Phase: Saving For Retirement

The Accumulation Phase: Saving For Retirement

The path to a comfortable retirement begins with the accumulation phase. Our retirement planning services empower you to take control of your financial destiny by helping you to consider all the ways you can and do accumulate wealth. We'll work together to create a comprehensive savings strategy that ensures your golden years are filled with peace and prosperity.

The savings guidelines to the right include anything you have in a retirement account, like a 401(k) or Roth IRA, company matches, as well as your investments in things like index funds or through robo-advisers. While personal savings goals can differ between individuals, these milestones can help you stay on track or kick it into gear if you’re nowhere close.

Retirement Savings Vehicles

Navigating the world of retirement savings can be daunting, but luckily you don’t have to do it alone. We'll demystify popular savings vehicles like 401k plans, Individual Retirement Accounts (IRAs), and Roth IRAs. Our advisors will walk you through the basics of each option, highlighting their benefits and potential tax advantages. When you work with Joffrey Smith Financial Group, you get clear answers on what all of these accounts mean as they relate to you. Some basics include:

  • 401(k) Plans: A pre-tax 401(k) plan is an employer-sponsored retirement account that allows employees to contribute a portion of their pre-tax income towards investments. Contributions are often matched by the employer, providing a valuable opportunity for tax-deferred growth and potential long-term savings. 
  • Roth 401(k) Plans: A Roth 401(k) is an employer-sponsored retirement savings account that is funded with post-tax money. Withdrawals in retirement are tax-free.
  • IRAs (Individual Retirement Accounts): IRAs are personal retirement accounts that individuals can open independently. They offer tax advantages, allowing individuals to contribute a certain amount each year. Depending on the type of IRA (Traditional or Roth), contributions may be tax-deductible or tax-free upon withdrawal during retirement.
  • Roth IRAs: Roth IRAs are a specific type of Individual Retirement Account that differ from Traditional IRAs. With Roth IRAs, contributions are made with after-tax dollars, but withdrawals during retirement are generally tax-free. This account type is advantageous for those who expect to be in a higher tax bracket during retirement.

Investment Strategies

Maximizing returns while managing risk is crucial for a successful retirement plan. Our seasoned advisors will introduce you to effective investment strategies tailored to your unique goals and risk tolerance. By understanding the concepts of asset allocation and diversification, you'll gain confidence in your investment decisions. Plus, we emphasize the importance of regular portfolio rebalancing to keep your retirement plan on track.

Social Security: Supplemental Retirement Income

While Social Security serves as a supplemental retirement income for many, we recognize that it's not typically the primary savings vehicle. Nevertheless, our advisors will provide a general overview and address frequently asked questions about Social Security. We believe in a comprehensive approach to retirement planning, where every aspect of your financial well-being is considered.

401k Rollovers

If you have retirement funds in a 401(k) from a previous employer, we'll guide you through the process of a smooth rollover. Consolidating your retirement accounts can simplify your financial picture and potentially unlock more investment options.

Annuities and Retirement Planning

An income annuity may help cover essential expenses in retirement that aren’t already met by Social Security or pensions. Fully covering essential expenses with lifetime guaranteed income sources can provide peace of mind that you’ll never outlive your money, no matter how long you live. The main types of annuities are fixed, variable, and fixed index annuities.

  • Fixed annuities guarantee a fixed interest rate on your contributions over a period of time.
  • Variable annuities provide a return based on the investment performance of their subaccounts. The payout you receive from fixed index annuities is tied to a market index such as the S&P 500 or Nasdaq.
  • Fixed index annuities also protect you against losing any of your principal if the index declines. This makes a fixed index annuity safer than investing directly in an index fund. To pay for this protection, fixed index annuities set limits on both your gains and your losses.

The best type of annuity varies from person to person. The type of annuity that is best suited for you depends on your current financial situation and long-term financial goals for an annuity.

The Distribution Phase: Making the Most of Your Retirement Savings

The Distribution Phase: Making the Most of Your Retirement Savings

Congratulations, you've reached retirement! Now, it's time to make the most of your hard-earned savings. Our experts will devise tax-efficient withdrawal strategies, so you know which accounts to draw from first:

1. Taxable accounts: Tap into your IRA and pre-tax 401k funds first, managing tax implications carefully.
2. Non-retirement accounts: Next, non-retirement accounts, optimizing your overall tax situation by avoiding capital gains taxes for as long as possible.
3. Tax-free accounts: Finally, utilize your Roth IRA and Permanent Life Insurance, maximizing your tax advantages.

Retirement Income Planning

Steady retirement income is the cornerstone of a worry-free future. Our team will help you build a sustainable income stream, ensuring you enjoy the retirement you've always dreamed of.

Long-Term Care Planning

Protecting your retirement savings from unexpected healthcare costs is crucial. We'll work together to create a long-term care plan that safeguards your financial security, providing peace of mind for you and your loved ones.

Retirement Planning Advisor Near Me

If you’ve searched for “retirement planner near me” or “retirement planning near me,” and feel overwhelmed by the results that pop up, you’re not alone. Rest assured, you’ve come to the right place. With a CERTIFIED FINANCIAL PLANNER™ in house, holding numerous other designations, you can be sure that our fiduciary duty is to advise you in your own best interest. We don’t work on commission or make more or less money by selling unnecessary financial products. With a physical presence in Worcester, MA and the ability to assist in financial planning in almost all 50 states, we know we can help you wherever you may be. 

Let’s Get Planning!

Ready to take the first step towards a secure retirement? Contact Joffrey Smith Financial Group today to speak with a retirement advisor near you. It’s never too late to take a look and get on track. Discover when you can retire, calculate how much you need to retire, and embark on a journey towards financial freedom with our guidance. Our team is dedicated to crafting personalized retirement plans that align with your aspirations and dreams.

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