Retirement and Inflation: Strategies to Preserve Your Purchasing Power Over Time
Tips to Help You Mitigate this Retirement Risk When planning for retirement, there are many factors to keep in mind, and inflation is one of the most important—yet often overlooked—considerations. While you may have built a solid retirement nest egg, inflation can slowly chip away at the purchasing power of your savings. That means over time, the same amount of money may buy you less than it does today, which could impact your ability to maintain the lifestyle you envision for your golden years. The good news is that with the right strategies, you can help protect your retirement […]
Life Beyond Work: Planning for a Meaningful and Purposeful Retirement
Why You Shouldn’t Overlook the Non-Financial Elements of Retirement Planning As you prepare for retirement, a whole new chapter of life is about to unfold—one filled with opportunities and possibilities. It’s exciting, right? And while you’ve probably put a lot of effort into planning your finances for this next phase, have you thought about the non-financial aspects that make retirement truly fulfilling? In this article, we’ll discuss how to create a retirement that’s not just financially stable, but also full of purpose and meaning. No matter the lifestyle you envision for yourself, these tips can help you design a […]
Navigating Required Minimum Distributions (RMDs) and Their Impact on Tax-Free Income
Get a Comprehensive Understanding of Your Retirement Income As you approach retirement, managing your money takes on new complexities, and one important change to be aware of is Required Minimum Distributions (RMDs), which begin at age 73. It’s essential to understand how RMDs work so that you stay compliant with IRS rules and recognize how they impact your retirement income and tax strategy. This article breaks down the basics of RMDs, how they affect taxes, and offers strategies for potentially optimizing tax-free income during your retirement years.
A Smart Approach to Tax-Free Retirement Income: The ‘Three Buckets’ Approach
Consider This Savvy Strategy to Work Toward Achieving the 0% Tax Bracket Portions of the following content on the three buckets approach to tax-free retirement income have been adapted from the book Tax-Free Income for Life by David McKnight and reference his popular book, The Power of Zerol. Let’s explore a strategic method for achieving tax-free retirement income: the three buckets approach, popularized by David McKnight in The Power of Zero. This strategy divides your retirement savings into three types of accounts, or “buckets,” each with distinct tax treatments. Understanding how to balance and allocate your funds across these […]
Understanding the Role of Fixed Annuities in Creating Lifetime Income
Discover What You Need to Know About This Savvy Strategy As you enter retirement, one of your top priorities will be strategizing for a steady and reliable source of income. Fixed annuities can play a key role in meeting this need, offering a way to create consistent payments throughout your retirement years. Unlike other investment options, fixed annuities provide a guaranteed stream of income that won’t fluctuate, helping to create a solid financial foundation. Let’s dive into how these annuities work and explore why they might be a good fit for your retirement income strategy.
The Most Important Math Equation of Your Life: Solving for Guaranteed Lifetime Income
Don’t Miss a Variable in This Crucial Calculation The following article on guaranteed lifetime income planning is adapted from the book Tax-Free Income for Life, by David McKnight. There’s a massive X factor when it comes to retirement planning: you simply don’t know how long you’re going to live. You’re trying to solve the most important math equation of your life, and you’re missing the most important variable! That’s why longevity risk is every retiree’s most vexing concern. If you don’t make provisions for how long you’re actually going to live, then you could run out of money before […]
What You Should Know About the Three Percent Rule – Part II
Four Significant Shortcomings of This Common Retirement Withdrawal Rate The last article we shared, available here on our blog, introduced the Three Percent Rule – a commonly known retirement withdrawal strategy. We discussed how it came to be, and though popular, we also teased that this strategy has several disadvantages. Getting your retirement withdrawal rate right is critical of you want to avoid outliving your money in retirement, so read the below excerpt from Power of Zero guru David McKnight to learn about four significant shortcomings of the Three Percent Rule that every retiree should know.
What You Should Know About the Three Percent Rule – Part I
Is This Popular Strategy Ideal for Your Retirement Withdrawal Plan? In an earlier article, I touched on one of the biggest risks to retirement security: longevity risk. This is the possibility of living longer than expected and potentially running out of retirement savings. Today, let’s explore a common approach to managing this risk called the Three Percent Rule, which offers a strategy for helping your retirement funds last throughout your lifetime. Using ideas shared by Power of Zero guru David McKnight, I’ll share what came before it, how it came to be so popular, and most importantly, whether it’s […]
Navigating Healthcare Costs in Retirement: Strategies to Stay Financially Stable
Why It’s Critical to Plan Ahead for Your Medical Expenses – And How to Get Started Retirement is an exciting time filled with new opportunities, but it also comes with important financial responsibilities—especially when it comes to managing retirement healthcare costs. Addressing these costs is crucial to maintaining financial stability so that you can fully enjoy your golden years. Having a plan in place to navigate and optimize healthcare expenses can be a game-changer for preserving your retirement funds. The following strategies are designed to help you prepare for the rising costs of healthcare, allowing you to enjoy a […]
The Pros and Cons of Annuities in a Retirement Portfolio
Could This Tool Help You Meet Your Financial Planning Needs? When building a retirement portfolio, it’s important to consider various financial tools, and annuities are often part of the conversation. Understanding annuities is essential, as they can provide both an asset and an income stream in retirement. Like other financial options, annuities come with advantages and disadvantages. The article below will help you better understand annuities, so you can assess whether adding one to your retirement strategy aligns with your long-term financial goals.