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Start the Year with a Retirement Plan Review

The beginning of a new year is an excellent time to revisit your financial plan and ensure it aligns with your long-term retirement goals. Whether you’re approaching retirement or already enjoying it, a periodic review can help you stay on track for financial security and peace of mind.

Evaluate Your Investment Portfolio

Your investment strategy should reflect your current stage of life and tolerance for risk. As you move closer to or further into retirement, adjusting your portfolio can help balance growth with stability.

Key Questions:

  • Are you comfortable with the level of risk in your investments?
  • Does your portfolio align with your income needs for the next 5–10 years?
  • Have you reviewed your investments for opportunities to minimize taxes or rebalance?

Review Income Sources

A solid retirement income strategy ensures financial stability. Assess your income sources, such as Social Security, pensions, and distributions from retirement accounts, to confirm they align with your needs and goals.

Consider:

  • Are you withdrawing the right amount to sustain your retirement without depleting your savings too quickly?
  • Have you factored in inflation and potential cost-of-living adjustments?
  • Are there tax-efficient strategies you can use to optimize withdrawals?

Plan for Healthcare and Long-Term Care

Healthcare is a major expense in retirement, making proactive planning essential. Reviewing your Medicare, private insurance, and long-term care options can help prevent unexpected financial burdens.

Key Questions:

  • Do you have sufficient coverage for routine and unexpected healthcare needs?
  • Are you budgeting for potential long-term care expenses, such as assisted living or home care?
  • Would a Health Savings Account (HSA) or other savings tool help offset future costs?

Tax and Estate Planning

Smart tax planning and a well-structured estate plan can protect your assets and ensure your legacy is preserved according to your wishes.

Tax Planning:

  • Implementing a tax-efficient distribution strategy.
  • Minimizing taxes on Social Security benefits and keeping Medicare premiums low.
  • Exploring ways to reduce Required Minimum Distributions (RMDs), such as Roth conversions.

Estate Planning:

  • Is your will or trust up to date?
  • Have you assigned beneficiaries and powers of attorney?
  • Does your plan account for potential tax implications?

Regularly reviewing these aspects of your retirement plan can provide financial confidence and long-term security. Taking a proactive approach helps ensure that you remain in control of your financial future.

Disclaimer: This article is provided for general information and illustration purposes only. Nothing contained in the material constitutes tax advice, legal advice, a recommendation for purchase or sale of any security, or investment advisory services. Please consult a financial planner, accountant, and/or legal counsel for advice specific to your situation. Reproduction of this material is prohibited without written permission from Jason Dall’Acqua, and all rights are reserved.