| The Power of Planning... The longevity issue is one area of retirement planning that only in the last decade has become a key consideration when planning a retirement. Here is why; • Social Security – The decision when to apply for Social Security benefits, from age 62 to 70, requires extensive analysis, as it is essentially longevity insurance. A poor decision could result in losing hundreds of thousands of dollars of income should your lifespan near 100 years old. If you are married, or have been married, a coordinated social security claiming strategy needs to be mapped out, in order to maximize available benefits. • Required Minimum Distributions - At 70 ½ years old, distributions from most deferred retirement plans need to begin. Should you still be working or have sufficient income, the possibility of being pushed in a higher tax bracket by these distributions are real. Addressing that possibility is best done years in advance in order to minimize taxation, so to keep those tax dollars that may be needed far into the future. • Investment Compounding – Underestimating the financial force of exponential growth of assets, attributed to compounding over a number of years, is mathematical folly. Compounding is key to a successful retirement. • Trends in Budgeting - Economic trends in personal income and expenses, as well as drilling down as to an individual's specific situation, including likely future health conditions, make the longer term projections as worthwhile as possible. The need for a concrete retirement plan, built incorporating longevity issues, is the best path for long term financial security. Working with a Certified Financial Planner, the highest standard for planning services, gives you access to the best quality in building your plan and achieving your goals. Let's Make a Plan! |
Longevity
 |
| |
 |
| |
 |
Thomas C. Vaccaro,CFP®
| Thomas C. Vaccaro, CFP® Certified Financial Planner since 1988 |
