On a recent episode of Retire Smart Florida, the founders of Oxford Advisory Group discussed some of the most common concerns when it comes to that looming question retirees may have.
When can I retire?
Christopher J. Dixon Jr. and Samuel Dixon cover some of the most asked questions when it comes to retirement.
It can be a complex world of professionals that one works with if they have been planning to retire. Savings, investments, and usually a few randomly acquired accounts over here or over there. It is far from uncommon to see a client with a litany of accounts, 401(k)s, IRAs, savings, investments, maybe even those that have been inherited.
Setting up for retirement is entirely different than saving and investing towards retirement. When that final switch flips one goes from being paid to paying themselves and the strategies that got them to where they are will no longer get them to where they are going.
It has been said that clients leave their advisors not because of poor investments, but more often because of a lack of communication. If an advisor focuses mostly on investment planning, they may not be fully equipped for the key concerns of their existing clients when retirement is on the horizon. There are three core topics that if you address them holistically and proactively you may just help your clients sleep better at night knowing there is a plan.
Social Security, Taxes, and Income Planning are the broad topics that may just drive clients to work with an advisor who focuses on retirement instead of staying put with their current investment advisor.
Social Security may not seem like a large concern for those who have stocked away plenty for retirement, but optimizing the when and the how of it can keep even the most careful saver up at night. There are many re-occurring concerns for Social Security, one of which is that it will run out. With the SSA stating the trusts may be depleted by 2035, it can be hard to know what to plan for.
Tax-focused financial advisors will look at a retiree’s sources of income, including Social Security to help structure an income plan. One must see the tax implications that compound when SS benefits start overlapping with RMDs and other income.
Investment planning alone won’t be enough to create a retirement plan that feels successful for your top clients. Learning how much they need to feel comfortable during retirement is the first step in constructing an all-encompassing income plan. Factoring in what portion can come from Social Security, what portion needs to come from investments, and how much of everything will be reduced by taxation.
Advisors may feel their clients are on track and their plans are going smoothly, but if one doesn’t proactively reach out and address these common concerns, they risk their clients finding someone who does. Advisors that only focus on investments, may serve clients best by working with or referring to advisors that focus on the most common pitfalls of retirement. Many advisors have an area of focus, while some try and wear all hats.
Learn more about some of the most common retirement questions by subscribing to and following the show on YouTube.
This is prepared for informational purposes only. It does not address specific investment objectives, or the financial situation, and the particular needs of any person who may receive this report. The information herein was obtained from various sources. Oxford Advisory Group does not guarantee the accuracy or completeness of information provided by third parties. The information in this report is given as of the date indicated and is believed to be reliable. Oxford Advisory Group assumes no obligation to update this information or to advise on further developments relating to it.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
