Retirement is about far more than reaching a number.
Watch to learn how thoughtful planning today can create greater peace of mind for tomorrow.
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Through decades of helping families build and preserve their wealth, we've found that one of the most overlooked moments in a financial plan is the first morning of retirement. While market downturns can be unsettling, the transition from spending 40 years working hard and building your savings to suddenly drawing from your accounts can feel even more challenging.
In a recent survey from the TIAA Institute and Nuveen, only 22 percent of those saving primarily into 401(k)s had given serious thought to how they'd turn their savings into income during retirement.
The knowledge gap gets more serious when it comes to longevity, with 44 percent of people underestimating the average lifespan past age sixty-five. If your plan assumes a shorter retirement than the one you actually live, your money may have to stretch further than expected.
Moving from saver to spender is as much psychology as math, and a big part of our job is helping you feel confident about your right to spend.
And retirement income planning may become more complex in the years ahead, as policymakers continue to debate how to address the long-term funding challenges facing Social Security. While we don't know what changes may ultimately be made—or how future retirees could be affected—current projections suggest that if no action is taken, Social Security could eventually pay close to a quarter less than the full benefits currently scheduled. For many retirees, that could represent a meaningful reduction in monthly income.
This is just one example of how a plan that leans on every promised dollar is a fragile one. We build strategies for unpredictable scenarios like this, shaped around your lifestyle and resources, so a single headline never forces a drastic change of course. And it’s important to know that this should not cause panic for retirees, but it does reinforce why income plans need room for change.
Much of this comes back to one thing: people are living longer than their plans assume. Bank of America's recent study of wealthy Americans found that more than 90 percent now treat longevity as a central part of their planning, yet fewer than half have the basics — like a will, advance directive, and power of attorney — in place.
For business owners, longevity planning often extends beyond personal finances and into the future of the business itself. Nearly a quarter have inherited a company, more than double what it was two years ago. And while most say succession planning matters to their wealth, many don’t have a documented plan in place.
Selling or passing down a business is one of the most financially important and tax-sensitive moments of an owner’s life, and it is important to plan for well in advance of a transaction.
These are the kinds of issues we help clients navigate every day. And later this month, my colleague Dave Nienaber is joining a panel at the Cincinnati Business Courier's Business Succession Forum on succession planning, wealth transfer, and preparing the next generation to lead. If you’re interested in learning how to plan for your business’s next chapter, check out the registration link in the description below.
Whether you come see Dave in person or pick up the phone to connect with a Foster & Motley advisor, our message is the same: peace of mind isn't something you buy in retirement. It's something you build years before.