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Retirement Planning

Because people are living longer today, preserving wealth and maintaining a certain lifestyle are high priorities for many clients. We assist clients in planning the retirement they envision and desire. In retirement, we believe income planning is critical to making assets last as long as possible.1

Retirement

Our advisors all agree: planning for retirement should start early. Time is a tremendous ally to investors planning a secure retirement.

When planning retirement, we recommend clients establish an annual retirement income goal of approximately 80% of a client’s income the year they retire. For example, earning $200,000 equates to needing approximately $160,000 annually during retirement. We assist clients in determining their actual income needs and developing an overall retirement plan which might include:

  • Contributing to an employer sponsored retirement plan such as a 401(k) or 403 (b), especially if the employer matches contributions
  • Using automatic payroll deduction to invest regularly utilizing dollar cost averaging. This is the process of making regular investments on an ongoing basis. For example, a client might invest $1000 each month into a portfolio.2
  • If appropriate, consolidating assets from a previous employer’s plan into one IRA and discuss other options available.
  • Utilizing an Individual Retirement Account (IRA) if the employer doesn’t offer a retirement plan
  • Utilizing a Solo 401K, Profit Sharing or Defined Benefit Plan if self-employed or a small business owner

Our team also recommends diversification of retirement savings and works with clients to determine the allocation that is most appropriate for each individual.3

As clients near retirement, our advisors may coordinate with the clients’ other advisors including CPAs and attorneys to:

  • Establish priorities such as retirement date, desired lifestyle, and desire to support other family members and/or charitable giving. Although clients may want to leave an inheritance behind, the first priority is to ensure expenses can be met during retirement.
  • Determine how much is needed to live comfortably in retirement. Few clients have enough investments to meet all retirement expenses so our advisors attempt to maximize all potential sources of income.
  • If appropriate, consolidating assets from a previous employer’s plan into one IRA and discuss other options available.
  • Utilizing an Individual Retirement Account (IRA) if the employer doesn’t offer a retirement plan
  • Utilizing a Solo 401K, Profit Sharing or Defined Benefit Plan if self-employed or a small business owner
  • Analyze factors such as age, spouse’s age, health and other sources of income to decide how to maximize Social Security benefits.
  • Review risks which can include market declines and major life events. Asset allocation can help mitigate these risks.
  • Consider healthcare costs. Americans are living longer, which increases the risk of health changes and larger healthcare expenses. Clients need to understand these potential costs and evaluate healthcare options to prepare for retirement.
  • Develop a business succession plan if assets include ownership of a business. Our team can assist in identifying the best alternative.

It’s finally time to enjoy the well-deserved, comfortable retirement that was planned. Our advisors help retirees stay on track by providing assistance in the following areas:

  • Managing their income, which includes the timing of withdrawals and possible adjustments to their portfolio and/or lifestyle. A balance of growth-oriented and income generating assets may help.
  • Determine how much is needed to live comfortably in retirement. Few clients have enough investments to meet all retirement expenses so our advisors attempt to maximize all potential sources of income.
  • Developing a withdrawal strategy that takes into account required distributions to comply with various regulations. If the income is not needed, an option may be to reinvest excess cash.
  • Continuing to review healthcare costs, which could be mitigated by long term care insurance and Medicare supplement policies
  • Assisting with estate and legacy planning.
  • Occasionally revising the overall retirement plan to cope with the unexpected. Our advisors can assist with a number of strategies to potentially minimize losses and generate additional income. We believe the most important strategy is not waiting to make adjustments.
  • 1 As federal and state tax rules are subject to frequent changes, you should consult with a qualified tax advisor prior to making any investment decision.
  • 2 Dollar cost averaging does not assure a profit and does not protect against loss. It involves continuous investment regardless of fluctuating price levels of such securities. Investors should consider their financial ability to continue purchases through periods of low price levels.
  • 3 Diversification does not ensure a profit or protect against a loss.
How Can We Help You?

Contact us today to learn more about investment and insurance services provided by Woodforest Financial Services.


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