Want to retire in the next 10 years? Then you’ve probably had thoughts of buckling down and making sure all your ducks are in a row. But where do you start? In this article, we outline how to lay the groundwork and understand where you stand, financially. We’ll get you thinking about future-proofing your finances and dig into why professional guidance just might be the ticket to retiring with confidence.

Laying the Groundwork for Retirement Planning

Laying the groundwork means understanding where your finances stand today while taking a realistic look at what you’ll need for tomorrow. Start by taking a quick inventory of your assets – 401k balance, investment portfolio, savings account, etc. Take your tallying a step further and log into your My Social Security to get an up-to-date look at what you can expect to receive from Social Security. Just remember, the monthly payment will vary based on when you begin collecting your benefit. You can start collecting at age 62, but your payment will be permanently reduced. Push back when you begin collecting Social Security and you’ll be rewarded with a higher monthly payment. This strategy of trading time for a larger payment tops out at age 70.

Now that you have a handle on where you stand today, start thinking about the future. Once you're retired, what expenses will you have? Things like utilities, gas, and groceries may not change much. But will you need to factor a mortgage into your retirement budget? Do you have other consumer debt? How about memberships, expected travel costs, or other entertainment/hobby expenditures? Having an estimated monthly expense figure in hand can help you quickly understand how long your current savings will last once you’re no longer receiving a paycheck.

With the groundwork laid, you’re starting to visualize if the timeline you have in mind is realistic. Having questions and concerns at this point is completely normal, it’s okay to not have it all figured out. There are also other aspects to retirement budgeting and income planning that we haven’t touched on. But with this baseline of knowledge, you start to gain a clear understanding of where you’re excelling and where you may need to focus your efforts.

Building Financial Resilience

As you prepare for this next chapter, building financial resilience is paramount. This means creating a robust cushion that can withstand the ebbs and flows of the economy, unexpected expenses, and evolving lifestyle changes that come with age. A silver lining for many nearing retirement is that the final decade of one's career often sees the highest earning years. This means you're in a prime position to supercharge your savings and investment efforts. Taking advantage of this period can make a significant difference in the financial health of your retirement.

Feeling like you have a bit of catch-up work to do? The IRS allows individuals aged 50 and over to make annual catch-up contributions. The max annual contribution into a 401k is currently $22,500. But those age 50 and over are allowed to contribute an additional $7,500 per year, for a total max contribution of $30,000.

Embracing these opportunities to amplify your savings not only helps in creating a sizable nest egg but also fosters financial resilience. Remember, retirement isn't just about having enough to live on; it's about having the peace of mind that comes with financial security. So, with 10 years on the horizon, now's the time to play the game wisely and secure your future.

Why Professional Guidance Matters When it Comes to Retirement Planning

The path to retirement is much like navigating a maze - filled with opportunities and potential pitfalls. While many focus on conventional routes like stashing cash into a 401k and banking on Social Security to fill in the gaps, the journey towards a comfortable retirement is much more intricate. There's a plethora of options available to amplify your retirement savings, and understanding them all can be overwhelming.

For instance, are you aware of Roth IRAs, health savings accounts (HSAs) that can be used for retirement, or the benefits of taxable brokerage accounts? Are you leveraging compound interest, and how about your war chest (emergency fund) for when the market dips or unexpected expenses arise? Beyond these, strategies involving real estate investments, annuities, and various tax-sheltering mechanisms can significantly impact your retirement nest egg. Each of these has its unique benefits, limitations, and implications that need careful consideration.

Given the vast landscape of retirement options, having a knowledgeable guide by your side becomes indispensable. At Integrated Wealth Management, we use an all-encompassing approach that ensures no stone is left unturned. We are here to educate you to make sound financial decisions tailored to suit your individual needs and goals.

Furthermore, professionals ensure that you don't overlook crucial aspects of retirement planning, such as factoring in social security benefits, Medicare considerations, optimal withdrawal strategies, and potential tax liabilities. Lastly, there's an undeniable peace of mind that comes with expert guidance. Knowing that your retirement plan has been crafted with a comprehensive outlook and that you haven’t missed out on any potential benefits is invaluable.

Don't leave your retirement to chance. Take action to secure your financial future. The road to retirement can be complex, but with the right guidance, it can lead to a fulfilling and worry-free destination.

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About Integrated Wealth Management

Integrated Wealth Management is owned by Burt Hutchinson, CPA, CFP®. We’re a CPA-led organization, meaning we’re here to handle your complex tax scenarios and provide cost-saving insight related to your financial plan.

We’re here to guide you through the 3 stages of retirement:

Uncertainty Stage: When you are within 10 years of retirement and have questions about how to make it work
Stability Stage: When you have reached the financial milestone to retire comfortably and confidently
Reflection Stage: When you are looking to leave a legacy

We are also here to provide experienced, empathetic support during times of loss, such as the death of a life partner. You need confidence and a sense of security to enjoy retirement. As fiduciaries with a fee-only structure, we never receive commissions. Free of ulterior motives, you can be sure we’re focused on your goals.

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Disclosure Statement:

This presentation is not an offer or a solicitation to buy or sell securities. The information contained in this presentation has been compiled from third-party sources and is believed to be reliable; however, its accuracy is not guaranteed and should not be relied upon in any way whatsoever. This presentation may not be construed as investment, tax, or legal advice and does not give investment recommendations. Any opinion included in this report constitutes our judgment as of the date of this report and is subject to change without notice.

Additional information, including management fees and expenses, is provided on our Form ADV Part 2 available upon request or at the SEC’s Investment Adviser Public Disclosure website, Past performance is not a guarantee of future results.