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Retirement is the biggest financial goal for most people – and often the source of many questions. Whether you’re already retired, or still planning, a Premier Wealth Partners financial advisor can help answer your questions about retirement, so you can feel more confident about your future. Luckily, Premier Wealth Partners, a private wealth advisory practice of Ameriprise Financial is here to help you navigate the complexities of wealth management through comprehensive financial planning. You’ve worked hard to save for retirement – and deserve to enjoy it with peace of mind. As you plan for these years, great place to start is by having a trusted team of advisors in your corner.
At Premier Wealth Partners, we look to provide comprehensive financial care to help clients with their wealth management strategies. We believe our approach starts with your dreams and goals, not just numbers. Our team has experience helping clients with the complexities of wealth management and customized financial planning. We work to achieve this by utilizing consistent, disciplined processes and strategies.
One day you’re celebrating the first day at a new job. The next thing you know, toasts are being raised at your retirement party. Acting before these important milestones can help you fine-tune your investments, buffer against market volatility and help ensure that life post-work is more relaxing than taxing.
10 years before retirement:
Around 10 years prior to retirement it is prudent to revisit the topic of tax diversification. During this stage of planning, begin ramping up your savings efforts. It’s also a good time to ask your advisor how you could allocate your savings across three tax-related categories to help manage your tax burden in retirement: Tax-free, Taxable and tax deferred. Take control of your financial picture with tax diversification. Diversifying your assets among three tax categories may help your money last longer in retirement. Tax-deferred vehicles like 401(k) plans are important, and by taking advantage of strategies that help spread out tax obligations—such as a Roth IRA or Roth 401(k) — you may be able to diversify your investment portfolio and gain real benefits to income in retirement.
Benefits of tax diversification:
· Keep more of your savings: When you carefully choose the assets you will use to generate retirement income, you could pay less in taxes and as a result, keep more of your savings. This may help your savings last longer.
· Maintain control of your withdrawals: Tax-deferred investments, as well as the Roth 401(k), enable you to cho
ose how much you withdraw to fund your lifestyle–before you begin to take required minimum distributions beginning at age 72 (Roth IRAs are not subject to the required minimum distribution rule, however).
· Adapt for unexpected needs: You may be able to adapt to unexpected life events. For example, to pay for unexpected medical costs you could adjust the timing or number of withdrawals from taxable investments.
2-5 years out: Plan for Social Security
Social Security is a source of income you can’t outlive, so deciding when to file for it is a critical step in retirement planning. Although you can start collecting benefits at age 62, waiting to collect can pay off. With each year you delay, your overall benefit increases until reaching the maximum amount at age 70. After choosing a start date to collect benefits, you’ll need to apply online or in-person at a local Social Security office. Get more information about when you should collect Social Security. Your advisor can help you evaluate the Social Security benefit options that support your financial goals and factor in your personal situation. In recommending an age to collect benefits, they will consider: Varying tax rates on Social Security income. Capital gains and IRA withdrawals. Health issues and life expectancy in your family history.
Additional steps to consider at this milestone include:
1. Maximizing contributions to your retirement plans to meet federal limits.
2. Paying down unsecured debt, such as credit cards.
1 year out: Monitor your expenses
In the 12-month countdown to retirement, it’s important to get an understanding of your monthly expenses. Consider keeping two running lists — either conceptually or literally using separate credit cards and checking accounts — to quantify two types of expenses:
1. Essential needs that continue in retirement, such as housing, groceries, utilities and health care
2. Lifestyle spending, such as travel, hobbies and dining out
After a year you should have a good idea of how much income you’ll need for necessities, with extra money reserved for leisure and other lifestyle expenses.
Antonio C. Aiello, CFP®, CRPC®, is a Private Wealth Advisor, and CERTIFIED FINANCIAL PLANNER™ practitioner who specializes in retirement planning and wealth management. Tony chose Ameriprise Financial based on the ability to become a business owner. “As a franchise, our team at Premier Wealth Partne
rs can provide clients the best of both worlds—access to a Fortune 500 company and the freedom to customize our work,” said Tony, who has been in the business for 20 years and his team has over 175 years in combined experience.
What makes Premier Wealth Partners unique is our team approach and the relationship that Tony maintains with his clients. Having a team who possesses diverse skill sets enables us to help our clients achieve their financial goals and objectives. In addition to the depth of professional knowledge, the team strives to live according to a common set of values – Integrity, Independence, Success, Gratitude and Health.
Tony has chosen to keep his client base limited to understand and appreciate the uniqueness of each individual client, allowing him to provide a higher level of personalization than most other financial advisors. “I really consider my clients as an extension of my friends and family. I truly care about each one of them, beyond just their finances.”
“I believe most people wait too long to hire a personal financial advisor,” said Tony. Most people in their lifetimes will intermittingly work with a broker, an insurance agent or the retirement plan representative from their company. However, many people wait too long to hire a personal financial advisor to put it all together. “Most people will come to us when they plan to retire, whereas if they would have come to us 5-10 years earlier, we could have implemented strategies years in advance to improve their situation or ma
ke it an easier process.”
Lisa Brooks, CFP®, CRCP®, is a Financial Advisor and CERTIFIED FINANCIAL PLANNER™ practitioner, and has been in the industry for 21 years. Lisa focuses on Retirement Planning Strategies for clients and specializes on Retirement Income Strategies and Women’s Financial Strategies. “What many people may not realize is that I operate as a franchise of Ameriprise Financial,” said Lisa. “As such I can offer clients the personalized service at a smaller locally owned business but also can provide access to a Fortune 500 company. It really gives clients the best of both worlds and their team has over 175 years of combined experience you have a world of knowledge and full firm said when center and that has proven to be very valuable.”
In working with clients, she strives to help them achieve their financial goals and objectives. But she has also built lasting friendships. “Some of my clients have literally been with me since my first month in the business, and I think that sort of long-term relationship is something that cannot be underestimated,” said Lisa. “To know and help people navigate through many years of financial decisions is very rewarding. It goes beyond the financial planning and investments. My clients have become my extended family,” she said.
When asked who really inspired her to become a business owner, Lisa explained that her father was the person who inspired her to be an entrepreneur as he owned several of his own businesses and showed her that hard work pays
off.
Planning for retirement can seem like you are about to scale a mountain. Our team at Premier Wealth Partners is here to guide you every step of the way. Get in touch with us today to learn more about preparing for retirement and how our team can help you and your unique financial needs.
This information is being provided only as a general source of information and is not intended to be the primary basis for investment decisions. It should not be construed as advice designed to meet the particular needs of an individual investor. Please seek the advice of a financial advisor regarding your particular financial concern.
Investment products are not insured by the FDIC, NCUA or any federal agency, are not deposits or obligations of, or guaranteed by any financial institution, and involve investment risks including possible loss of principal and fl
uctuation in value.
Ameriprise Financial, Inc. and its affiliates do not offer tax or legal advice. Consumers should consult with their tax advisor or attorney regarding their specific situation.
Diversification does not assure a profit or protect against loss. Ameriprise Financial cannot guarantee future financial results.
Investment advisory products and services are made available through Ameriprise Financial Services, LLC, a registered investment adviser.
Ameriprise Financial Services, LLC, Member FINRA and SIPC.
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