Pursuing Knowledge
Pursuing Knowledge, brought to you by Pursuit Wealth Group is here to break down the world of personal finance.
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Pursuing Knowledge
The 5 Biggest Financial Decisions to Make Before You Retire
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Retirement is one of life's biggest transitions, and the financial decisions you make in the years leading up to it matter more than ever. In this episode of Pursuing Knowledge, we discuss the 5 key decisions that can help protect your retirement lifestyle and set you up for long-term success. 🎙️✨
Hi, welcome to Pursuing Knowledge brought to you by Pursuit Wealth Group. My name is Brittany Drish, and today I'm joined by Crystal Wees, a wealth advisor here at Pursuit. And today we're going to be talking about some big financial decisions that some clients are going to be facing when going into retirement. So, Crystal, if you want to start with that. Yeah.
SPEAKER_00So, you know, you've worked your whole life and you've been saving these dollars into various different accounts. And, you know, that's where we come in and strategize on, you know, where is my retirement income going to come from? You know, what are, you know, where are we going to pull these dollars from? What's in law today? And, you know, what's that combination of figuring out, you know, where retirement income is going to come from?
SPEAKER_01Yeah, of course. So let's start out with the million dollar question that a lot of clients come in and ask is when should I turn on my social security benefit?
SPEAKER_00Yeah, and so that is a huge question we get is, you know, when do I start to take it? You know, will it be there for me? You know, what where does that come from? And you know, we will strategize on, you know, should we delay so taking Social Security? Do we take it now? You know, do we um, you know, what is my longevity gonna look like? You know, what does my health look like? You know, are you married? So there's a lot of different factors that will come into play to say, you know, when do I turn it on? And we look at all those different factors along with the dollars that you have saved and and come up with a strategy based on, you know, what does that look like?
SPEAKER_01Yeah, so obviously something that's not gonna change is taxes, whether you're working or you're retired. So what can clients expect um during those gaps of income years with taxes?
SPEAKER_00Yeah, so you know, we'll look through and say, hey, you know, are you gonna be in a lower tax bracket? Should we do some Roth conversions? Meaning, you know, move money from you know IRA or tax deferred buckets to Roth based on what what's gonna be your tax rate. Um, you know, those are super important because maybe in your later years it'll bring your RMDs down, it'll you know potentially give you a subsidy of you know insurance pre-medical or pre-Medicare age. Um and so you kind of look to see, okay, where where can we pull money from, where can we be tax efficient? And you know, if we're in a lower income year, we can find some different ways to like move money from a tax deferred bucket to a tax-free bucket.
SPEAKER_01Yeah, so I know a lot of clients something they struggle with is they spend all of their years working and saving, save, save, save, and then they have to kind of switch their mindset to okay, I've saved all this time, now it's time to spend. Yeah. So how are we able to help um clients choose, you know, how to spend on their savings and where to spend down from?
SPEAKER_00Yeah, so you know, we'll look at where they are income-wise, how much they have saved, you know, what is the market doing, you know, when do they turn on social security? And so we're kind of shuffling on, you know, where do we pull it from based on what is going on today and what's in law today. So it's very customized to the client's actual, you know, situation. You know, if you're in a room full of people, you know, we may be able to give some advice, a broad-based advice on where they should pull money from, but we'll get to know your situation intimately and be able to give you kind of more customized advice on you know where to pull dollars from.
SPEAKER_01Yeah, and then another big decision um when deciding when to retire is obviously health care. So um how are we helping clients kind of cover that gap if they do decide to retire before the Medicare age of 65?
SPEAKER_00Yeah, and so like that goes along with the same way of you know where we're gonna pull money from at that point in time because there is um the ACA subsidy for health insurance pre-65 or pre-Medicare. There you're able to get a subsidy of insurance. Um, but it it depends on what your income is. So we'll say, hey, you know, we'll pull money from a non-qualified account to lower your income or a Roth. So that way you can get some sort of subsidy, you know, at a cheaper level than just going out to the you know marketplace to gather insurance pre-65. Right, okay.
SPEAKER_01And then the last big decision that um people going into retirement will obviously have to make um to prepare for the worst is long-term care if that is a need. Um so how can we help clients with that?
SPEAKER_00Yeah, so we'll kind of go through, you know, what are your assets? You know, do you have an estate plan in place? Um, you know, what does that look like from do you need some sort of long-term care insurance, you know, to put in place in case you don't have enough assets to supplement what that looks like. But we'll go through and say, hey, what do you have today? What do we need to plan for in the future to say, you know, will you cover a long-term care event for you know, you and your spouse or just you?
SPEAKER_01Okay, perfect. Thank you so much for your insight today, Crystal. If you are watching this video and you are nearing retirement or you have any questions whatsoever, please feel free to reach out to our office and we're happy to help you through those. Um, but we thank you for watching, and we'll see you next time on Pursuing Knowledge.