Funding Sources for Retirement

Social Security

To receive Social Security benefits, you must have 40 work credits.

To learn more, visit the SSA Government site to view your current status and standing for Social Security benefits: https://www.ssa.gov/myaccount/statement.html

Using the link above, you can review your SSA Statement to see how much work credits you have, what amount you can expect to receive based on certain retirement age, disability benefits, spousal benefits, survivor benefits, etc.

Please note that the statement information can change at any time. An example is the section “Social Security will be there when you retire” where it says “In 2034, Social Security would still be able to pay about $800 for every $1,000 in benefits scheduled.“

The SSA statement can be used as a general basis, but should not be fully relied on since the budget based on the government budget and can change at any time.

Employer-sponsored Retirement Plans like Simple IRA, 401(k), etc

A traditional 401(k) is a tax-advantaged retirement savings account offered by employers. Its primary purpose is to help individuals save for retirement by allowing them to contribute a portion of their pre-tax income, which can then be invested in a range of options, typically including stocks, bonds, and mutual funds.

Some matches a certain percentage, some matches a dollar amount, while others do not match at all. When was the last time you’ve reviewed your statement? Do you need help understanding it?

We also help rollover 401(k)s and other retirement plans that are stuck with your previous employer if you have moved onto a new job.

As you approach retirement, we understand the importance of safeguarding your financial future. Let us guide you in finding a plan that protects your hard-earned savings, ensuring peace of mind during uncertain market conditions.

Annuity

An annuity is a financial instrument that provides a steady and predictable stream of income over a specified period or for life, offering individuals the peace of mind and financial security they need in retirement or other long-term financial goals.

Annuities can act as a stable foundation upon which retirees can build their retirement income strategy, supplementing other sources like Social Security and savings.

Furthermore, annuities can be tailored to meet individual needs and preferences. There are various types of annuities, including fixed, variable, and indexed annuities, each offering distinct features and potential for growth. This flexibility allows retirees to choose an annuity that aligns with their risk tolerance, financial goals, and legacy planning desires. By integrating annuities into their retirement portfolios, individuals can enhance their financial resilience during their golden years, ensuring a reliable income stream to enjoy retirement to the fullest.

Savings

Savings play a pivotal role in a well-rounded retirement plan, serving as the foundation upon which individuals can build financial security for their later years. By diligently setting aside a portion of their income throughout their working lives, individuals can accumulate a nest egg that will sustain them during retirement

The advantage of saving for retirement lies in the power of compound interest, which allows your money to grow over time. This growth not only preserves the value of your savings but also helps it appreciate, ensuring that you have the financial resources needed to maintain your desired lifestyle during retirement.

Furthermore, savings provide a buffer against unexpected expenses or emergencies that may arise in retirement, such as medical bills (like Long-Term Care) or home repairs. By having a savings cushion in place, retirees can enjoy peace of mind, knowing they have the means to handle unforeseen challenges without depleting their retirement income. In essence, savings act as a financial safety net, affording retirees greater flexibility and confidence in managing their retirement years while allowing them to enjoy the fruits of their lifelong labor. Therefore, incorporating savings into retirement planning is not just a wise choice but a fundamental step toward achieving a financially secure and fulfilling retirement.

Supported by the Kids

Neglecting retirement planning and relying on one’s children to shoulder the responsibility of care in old age can place a significant burden on both generations. While it’s natural for parents to hope for support from their children as they age, it’s essential to remember that the financial and emotional strain this can create should not be underestimated.

Without proper retirement planning, individuals risk not having enough resources to maintain their quality of life, cover medical expenses (an example is Long-Term Care), or secure their independence in retirement. This can lead to a situation where grown children are forced to juggle their own financial responsibilities and provide care for their parents, potentially hindering their own financial stability and life goals.

Moreover, assuming that children will automatically step in to provide care can strain family relationships. It may lead to feelings of guilt, resentment, or obligation among children who may be torn between caring for their aging parents and managing their own careers and families.

It’s crucial for individuals to take responsibility for their retirement planning and seek appropriate financial tools and support to ensure they can maintain their well-being in old age without relying solely on their children. This approach not only fosters greater independence but also helps preserve harmonious family dynamics and the well-being of all family members involved.