Retirement planning is about more than reaching a certain age or hitting a specific savings goal. It’s about working toward the financial goals that support the life you envision.

Whether you’re years away from retirement, approaching your final years in the workforce, or already enjoying retirement, the decisions you make today may influence your financial opportunities in the future.

On a recent episode of The Art of Money, Art McPherson and Christian McPherson discussed several important aspects of building wealth and preparing for retirement. They covered topics from creating a personalized investment strategy to navigating taxes and then planning for life’s unexpected changes.

A thoughtful financial plan should be built around YOU! It should focus on your goals and the future you envision.

Plan Your Retirement Like You Plan Your Dream Vacation

Think about the time and effort you put into planning a family vacation. You research destinations, compare costs, build an itinerary, and make arrangements before you leave. Now consider how much time you’ve spent planning for retirement.

As Christian pointed out during the show, many people prioritize the experiences happening in the next six to twelve months while putting off retirement planning because it feels so far away. But beginning earlier may provide more opportunities to evaluate your options and make intentional financial decisions.

Building wealth isn’t necessarily about making one big move. It’s about consistently taking steps toward your goals, understanding where you stand financially, and reviewing your strategy as your circumstances change.

For individuals still working, this could mean evaluating retirement contributions, reviewing investment allocations, and developing a clearer picture of how much income you may need in the future. For those nearing retirement, it may mean evaluating when to transition from accumulating assets to developing a retirement income strategy.

Enjoy Today. Plan for Tomorrow. Build a Retirement Strategy With Purpose.

One of the important questions retirees face is how to enjoy the wealth they’ve accumulated while considering their long-term financial needs. Maybe you want to travel more, help your children and grandchildren, purchase a second home, or create meaningful family memories.

Those goals matter. Retirement planning doesn’t have to be solely about preserving every dollar for the future or leaving behind the largest possible inheritance. It’s about understanding what your money needs to accomplish for you.

A thoughtful retirement strategy balances enjoying life today with planning carefully for your financial needs in the years ahead. After all, no one knows exactly how long retirement will last or what unexpected expenses may arise along the way.

Spending more than your financial plan can reasonably accommodate could leave you with fewer financial resources later in life. On the other hand, being so cautious that you never enjoy the wealth you’ve built may mean missing opportunities that are important to you.

A personalized retirement plan can help you evaluate:

• How much income you may need to support your desired lifestyle.
• How much you may be able to allocate toward travel, hobbies, and family experiences.
• How your investment assets may support both current expenses and future needs.
• How you can pursue personal goals while considering the legacy you want to leave.

The goal isn’t simply to accumulate wealth. It’s to make thoughtful decisions about how that wealth may support the life you want to live. Learn more on our Wealth & Investment Management page.

Don’t Overlook Taxes When Planning for Retirement Income

One consideration that may be overlooked in retirement planning is how taxes could affect your income after you stop working. Retirement doesn’t mean your tax obligations disappear. How and when you withdraw money from your retirement accounts may affect your overall financial plan.

For example, many individuals accumulate substantial savings in traditional 401(k)s and IRAs. While these accounts can play an important role in building retirement savings, withdrawals are generally taxable as ordinary income. If most of your retirement savings are held in tax-deferred accounts, your withdrawals could influence your taxable income and potentially place you in a higher tax bracket than expected.

That’s why retirement planning involves more than determining how much money you have saved. It also involves understanding how that money may be taxed when you need it.

Consider the timing of your withdrawals. How might your own taxable income change throughout retirement?

This is where tax planning strategies, including evaluating potential Roth conversions, may become part of the conversation.

Depending on your circumstances, converting a portion of eligible traditional retirement assets to a Roth account may allow you to pay taxes on those funds now in exchange for the potential for qualified tax-free withdrawals later.

However, Roth conversions aren’t appropriate for everyone. The decision requires careful consideration of your current tax bracket, expected future income, conversion amount, and ability to pay the associated taxes.

The years leading up to retirement and the early years of retirement may offer opportunities to evaluate these decisions before required minimum distributions begin.

The key is to consider your entire financial picture rather than making tax decisions in isolation.

For more information, check out Art McPherson’s #1 Amazon Bestselling Book (2020) at Amazon.com: Death And Taxes: Nothing Is Certain Except For Death And Taxes… Until Now!.

Plan for Your Ideal Retirement. Prepare for Life’s Surprises.

Retirement planning often starts with a picture of the future you hope to enjoy with your spouse or family. But a comprehensive financial plan should also consider how your financial circumstances may change if life doesn’t unfold as expected.

For example, a surviving spouse who lost their partner may continue holding many of the same retirement assets but face different tax circumstances as a single filer. This could increase the tax burden on retirement withdrawals, depending on the individual’s income and situation.

Planning for this possibility in advance can help families understand potential financial implications and evaluate strategies that may address their needs. Estate planning is another important part of this process.

Whether your goals involve providing for a spouse, supporting children and grandchildren, or leaving a legacy, your financial and estate plans should be considered together.

Important considerations include:

• How retirement income needs may change after the loss of a spouse.
• Whether account beneficiaries and estate documents reflect your current wishes.
• How your assets may be transferred to the people or organizations you choose.
• Whether your financial resources may support your needs under different circumstances.

These conversations aren’t always easy, but they can help bring clarity to important decisions and provide a framework for your family. A thoughtful plan considers not only the retirement you hope to experience, but also the people and priorities that matter to you along the way.

When Headlines Get Loud, Keep Your Financial Goals in Focus

Market headlines, political developments, and economic uncertainty can make it difficult to evaluate your financial plans. When the news is constantly changing, it’s natural to wonder whether you should adjust your investments or wait for conditions to improve.

Three factors can help guide your decisions about how your portfolio may be structured: your individual goals, risk tolerance, and time horizon.

Consider two individuals approaching retirement. One may need to begin withdrawing from their investments within the next year, while the other may have additional income sources and assets they don’t expect to use for another decade. Even if they have similar account balances, their financial circumstances and investment time horizons may call for different approaches.

Retirement planning doesn’t necessarily mean every dollar needs to be invested for the short term. Some assets may still have a longer investment horizon, depending on when those funds may be needed. This is why a personalized investment strategy considers your overall financial picture, including your anticipated expenses, income sources, and the role each account plays in your plan.

Rather than allowing short-term headlines to dictate long-term decisions, it’s important to understand how your portfolio is positioned relative to your objectives and what adjustments, if any, may be appropriate as your needs evolve.

Your Financial Future Starts With a Plan Built Around You

Building wealth and preparing for retirement isn’t a one-time event. It’s an ongoing process that may evolve as your life, goals, and financial circumstances change.

From evaluating your investment strategy and exploring retirement income and tax planning considerations to preparing for unexpected life events, each part of your financial picture may play a role in your long-term financial planning.

At McPherson Financial Group, we believe financial planning should be personal. Your goals, your priorities, and the future you envision deserve a strategy designed around your individual circumstances.

Whether you’re building wealth, approaching retirement, or looking for greater clarity about your next financial chapter, reviewing your plan can help you better understand where you stand and what steps may be worth considering.

Schedule a complimentary consultation to discuss your retirement goals and discover whether your current plan is positioned for long-term success.

Phone: (321) 253-2016
Email: rachel@mcphersonfg.com

Securities offered through World Equity Group, Inc., member FINRA and SIPC. Investment advisory services offered through Prostatis Group, LLC dba McPherson Financial Group, a Registered Investment Adviser. McPherson Financial Group, LLC and Prostatis Group, LLC are separate entities and are not owned or controlled by World Equity Group, Inc. Insurance services offered through McPherson Financial Group, LLC. Insurance products are not securities or investment advisory services. Investing involves risk, including the potential loss of principal.