With each passing season, you are closer to the end of your career than the beginning and have fewer years to take actions toward a successful retirement. Financial decisions that you make, or fail to make, today will have a direct impact on your quality of life during retirement.
By helping you cultivate “Retirement Situational Awareness”, you can discover if you are truly retirement ready, and, if not, what actions you and your family should consider in order to get there.
Retirement Income Planning
Believe it or not, you and your spouse (if you’re married) may spend 25-30 years in retirement. That’s a long time to be responsible for generating a sufficient income stream, not to mention monitoring and adjusting your investment strategy with changes to your income needs and market fluctuations. There is often little room for error, especially at the beginning of retirement where mistakes can have a ripple effect for decades.
With our retirement income process, we will help you develop an investment strategy that is tied to your income needs, identifying the sources and addressing the key risks to your various income streams. We will also develop a recession plan specific to your situation.
No strategy assures success or protects against loss. Investing involves risk including loss of principal.
Pensions, Social Security, & Medicare
Pension and Social Security benefits are an invaluable part of your retirement plan, because they can help reduce the risk of living a long life. Decisions on when to start these income streams and which survivor benefits to select are, for the most part, irrevocable once income starts, so choosing well is critical. Similarly, Medicare selections can drive the quality and cost of health care for the rest of your life.
Through our planning process, we will model and quantify the benefits of different Pension, Social Security, and Medicare options so that you can make informed decisions regarding what is best for you and your family.
As part of this, we will also help you understand the various Medicare options and costs so that you make informed choices and understand how to reduce health care costs in retirement.
Tax Management Strategies
Unsurprisingly, taxes may well be your largest expense during your working and retirement years. Unfortunately, many tax professionals and families are mostly concerned with tax compliance or minimizing taxes for the previous or current tax years. We believe in a broader approach.
As part of our tax-planning process, we will review your recent tax return and collaborate with your CPA in a team approach, as needed, in order to better understand your current income and tax situation. From this, we can make projections and help you identify actions you may take to help reduce your current and future tax bills. And as your situation and tax law changes, we will update your projections.
Airline & Military Benefits
Since open enrollment for airline and military benefits is only available for a short period of time each year, they require thoughtful consideration. Without looking at your overall financial plan and what you own outside of the company, you could be making decisions in a vacuum.
Every year, we make ourselves available to discuss your options and advise you in the context of your goals and overall plan. We’ll help you understand what benefits you may want to accept or decline. This is especially critical when you get a new contract.
Loss of Medical Planning
In most professions, a relatively minor medical condition won’t affect a person’s ability to maintain their job. In your profession, however, the FAA can decide whether you keep flying. Although for most, the probability of losing your medical is low, the financial impact of this would be significant.
In the same way you use contingency plans every time you fly, we will help you understand your options ahead of time and put together a plan of action in the unfortunate event you lose your medical. Our goal is not to plan away this risk but to minimize its financial impact on your family.
Recent Dalbar studies show that many investors earn less on their investments than their respective benchmarks. Why? Because they often let emotions control their decision-making and don’t have a systematic process in place to guide their choices.
Our philosophy and process is focused on helping you develop an investment framework that is tied to your goals and in alignment with your emotional temperament and risk tolerance. Through this systematic, repeatable process, we believe you can manage your emotions and make better financial decisions.
*DALBAR’S year Quantitative Analysis of Investor Behavior (QAIB) study examines real investor returns from equity, fixed income and money market mutual funds. The study was originally conducted by DALBAR, Inc. in 1994 and was the first to investigate how mutual fund investors’ behavior affects the returns they actually earn. Past performance is no guarantee of future results. Indexes cannot be invested into directly.
Estate & Survivor Planning
When you pass away and leave loved ones behind, you will most likely want to make sure that the administration of your estate is manageable and benefits those you want it to. However, estate planning can be very emotional and complex, which is why many procrastinate and why some plans are not put together properly. In addition, family situations and estate tax laws change, which can leave many plans lacking.
Even before you visit an attorney, we will help you develop your estate goals and identify the roles and important people who should be part of your plan. We can also educate you on different ways to structure your estate, if appropriate, and calculate the amount of assets that your heirs are projected to receive. Finally, we will periodically review your plan with you so that you can make sure it stays up to date.