The First Step in Retirement Planning Is to Prepare–PillarWM
It is unavoidable to have reservations about your retirement, regardless of your net worth or living standards. The uncertainty of the future can cause stress and have an impact on how you handle your money presently. Hence, many affluent investors work with a financial expert to create a personalized and comprehensive retirement plan. We believe that the first step in retirement planning is to prepare early by analyzing your financial situation and goals. Investors wanting to invest over 5 million dollars can take insights on various retirement planning aspects by requesting a free copy of our book,7 Secrets to High Net Worth Investment Management, Estate, Tax and Financial Planning – For Families With Liquid Investable Portfolios Between $5 Million and $500 Million.
STRATEGIES FOR FAMILIES WORTH $5 MILLION TO $500 MILLION
The insights you’ll discover from our published book will help you integrate a variety of wealth management tools with financial planning, providing guidance for your future security alongside complex financial strategies, so your human and financial capital will both flourish.
Clients frequently share with us how the knowledge gained from this book helped provide them tremendous clarity, shattering industry-pitched ideologies, while offering insight and direction in making such important financial decisions.
Many of your problems can be alleviated by consulting with a retirement planner. Wealth managers are experts in this field because they recognize the importance of a retirement plan for the rich. At Pillar Wealth Management, we assist clients looking to invest liquid assets ranging from $5 million to $500 million in developing the best possible strategy tailored to their ideal lifestyle.You can call us to schedule your first consultation to learn how you can boost your retirement net worth.
Table of Contents
Why is Retirement Planning Necessary?
It’s important to consider how you’ll spend your time and money once you’ve retired. You will have objectives that you want to accomplish in certain situations. You might want to travel more, take up a new hobby, contribute more to charity, volunteer with non-profits, renovate your dream home, or thoroughly enjoy the luxuries you already have.A retirement plan, in a nutshell, deals with the unique features, challenges, and complexities that come with your retirement.
Retirement planning can help you prepare for the process of wealth transfer, as many retirement planners offer estate planning services as well. High estate taxes can leave your inheritors with no choice but to sell off your assets to pay off the tax bills. Retirement planning can help you prepare for that while answering your concerns such as, “What is a good retirement income?” or “How much should I have in savings to retire comfortably?”
Once you stop earning an active income, your savings will be your primary income source to support your spending habits, whatever they may be. At an older age, retirees can expect unforeseen health issues as well. Medical treatments, doctors’ visits, hospital bills, and full-time caretakers can be very expensive. Even large fortunes can run out if mismanaged or handled poorly. You can read more about safeguarding your assets in our book,The Art of Protecting Ultra-High Net Worth Portfolios and Estates – Strategies for Families Worth $25 Million To $500 Million.
Before you know it, you might have depleted your assets to the point that you’ll be forced to downgrade your lifestyle.With the aid of retirement planning, you can solve this problem. You can prepare for this eventuality by investing in assets that generate passive income during your retirement years. If you want to do more reading on investment strategies to improve your performance, you can read our guide,Improving Portfolio Performance: The Shifts Multi-Millionaires Must Make to Achieve Financial Security and Serenity.
The First Step in Retirement Planning Is to Consult an Expert
Many people will advise you that the first step in retirement planning is to find an expert who can guide you through the process. Typically, rich investors tend to seek out a retirement planner who has experience in working with high net worth clients or a wealth manager.
A retirement planner should be knowledgeable about strategies for securing your investments, generating income in retirement, ensuring financial stability for your family and legacy, and allowing you to live your life goals.They can assist you in restructuring your investments and lowering your taxable income. They are knowledgeable about insurance plans and can help you choose the best one for you. They also consider any loans or mortgages you will have to pay back, as well as whether your retirement income would allow you to make monthly payments.
Wealth managers work primarily with wealthy clients, so they can accurately gauge and comprehend their needs. They have the skills, expertise, and training to provide you with personalized financial planning services, including retirement planning.
Aspects of your retirement plan include tax management, wealth transfer, estate planning, and asset management. You can have one person handle it all if you hire a wealth manager. They allow you to have a detailed and in-depth understanding of your financial life.To learn more about our wealth management services,you can contact our team.
What is the Ideal Retirement Income?
It is natural to wonder, “What is a good retirement income?” You should seek some clarity on exactly how much money you need to support your lifestyle during your golden years. To understand where you stand, you might want to know,“What is the average retirement income in 2021?”
As published by the Boston College for Retirement Research, the National Retirement Risk Index (NRRI) calculates the percentage of households in the United States that will be unable to sustain their pre-retirement standard of living in retirement. Every year, the index is revised.
As of 2021, the percentage lies around 50%. The pandemic drastically affected the economy, with impacts from unemployment and growth in housing markets. The average median retirement income in 2021 is $56,632 for retirees around the age of 65. This value changes with your retirement age and whether or not you’re single.
Now, what is a good retirement income for wealthy individuals? According to most experts, your retirement income should be about 80% of your pre-retirement salary.This means that if you earn $100,000 a year in retirement, you’ll need at least $80,000 a year to maintain a comfortable lifestyle after you’ve retired.The size of your nest egg and how long it will last will be determined not just by how much you save, but also by how you spend it after you retire.
Starting Your Retirement Planning Process
Most financial advisors will agree that the first step in retirement planning is to identify your goals, expenses, income sources, and taxable income. These paint a picture of your financial circumstances, which ultimately determine the strategies or investments you will need to generate a sufficient amount of wealth for your retirement. Let’s discuss each in detail.
Figure Out Your Retirement Goals
One of the first step in retirement planning is to understand what you want from your retirement years. Everyone has their own vision of what a perfect retirement looks like. Some people would rather stay at home and focus on their hobbies, while others would either travel or start a new business venture.
Keeping physically, emotionally, and socially engaged in retirement makes retirees happier and more content. A retirement plan will assist you in determining what you can do with all of your free time, enabling you to pursue various options.Our wealth managers analyze and understand your goals when creating your retirement plan. You can schedule a free consultation with one of our managers to get started on the process.
Analyze Your Expenses
Knowing your current expenses will help you set a goal for your retirement income. Take into account any loans, loan payments, mortgages, tuition, insurance fees, transportation, entertainment costs, and everything else that is relevant to you.
Many times, you’ll need to support family members after you retire.For example, you might have children still pursuing an education. So, if you want to know,“What is the last step in retirement and education planning?” a retirement planner can help you with that. They can manage your wealth, savings, and investments in a way that allows you to provide for your family while pursuing your own interests.
Consider Your Income Sources
Investments, cash accounts, and fixed wages are the three main sources of retirement income for most people. Your IRA, 401(k), shares, and equities are examples of investments, while your social security and pension plans are examples of fixed incomes.
Affluent investors usually have multiple income sources. An expert can help you determine which of those investments will remain secure throughout your retirement.They can implement strategies that boost your portfolio’s growth and gain you more profits. We mention some of these strategies in our guide,5 Critical Shifts for Maximizing Portfolio Growth Strategies – For Families Worth $5 Million To $500 Million.
Be Mindful of Estate Taxes
Lastly, when it comes to your retirement, estate planning is one of the most important elements. As a rich investor, you may have a company, properties, or high-value assets that you want to pass on to your heirs or inheritors. Without the proper transfer strategy in place, estate taxes and transfer taxes can reduce the amount of inheritance they receive.
Retirement planning allows you to prepare for this by using strategies that help your beneficiaries get the most of your money. For example,you could give them their inheritance as gifts over the years, or you could set up a family limited partnership.
Estate and tax planning are a part of your retirement plan, which is why you should work with a financial expert who has a grasp on all three aspects. To read our insights on estate and tax planning, you can request our book,7 Secrets to High Net Worth Investment Management, Estate, Tax and Financial Planning – For Families With Liquid Investable Portfolios Between $5 Million and $500 Million.
What Does Retirement Planning Help You With?
Good retirement planners understand that the first step in retirement planning is to create a customized financial plan that outlines your objectives.After reviewing your long-term and short-term goals, they will help you plan out the specifics of your retirement.
Apart from establishing and managing your retirement accounts,they are capable of a wide range of activities, from opening TFSA accounts to introducing complex techniques that use tax deferral and sheltering to produce large compound revenues.
After you retire, you might still be subject to investment taxes, which would eat into your retirement savings even quicker. Retirement planning helps you create a retirement portfolio that takes these taxes into account and employs tax-avoidance investment strategies.You can gain more insights into tax planning by requesting our book,7 Secrets to High Net Worth Investment Management, Estate, Tax and Financial Planning – For Families With Liquid Investable Portfolios Between $5 Million and $500 Million.
A retirement plan also considers developing an appropriate business exit strategy. It aims to determine whether you want to remain a stakeholder and continue to receive a portion of the company’s stock or whether you want to remain a partner involved in making important company decisions.
Moreover, retirement planners can advise you on insurance plans and passive income sources to help you plan for unforeseen challenges. This would protect you from having to spend your entire retirement fund on unanticipated medical bills, litigation, and other expenses.
Hence, if you’re a high net worth or ultra-high net worth investor, it is in your best interest to avail of retirement planning services. They can help you identify what the first step in retirement planning is to do, as well as what is the last step in retirement and education planning.
If you’re convinced that the first step in retirement planning is to find a financial expert to help you with your retirement plan, you should make this decision carefully. The right advisor is essential to your financial security. At Pillar Wealth Management, we help clients who are looking to invest between 5 million and 500 million dollars in liquid assets. Our wealth managers are familiar with the different retirement goals that affluent investors have and can help you achieve them by creating personalized retirement plans.You can get in touch with our team for your first meeting.
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