Commentary: How to Build a ‘Results in Advance’ Plan for Your Retirement

Retired Couple
by Ford Stokes


Creating a solid retirement plan is essential for a worry-free and stable future. Still, many people lack the knowledge to achieve a successful retirement plan. 

Here’s a can’t-lose, three-step strategy to assist you in developing an effective “Results in Advance” plan for your retirement.

Step 1: Delete the IRS & minimize your taxes in retirement

Paying taxes is an inevitable part of life, but there are ways to minimize your tax burden in retirement. Consider the following strategies:

  1. Roth conversion: Convert funds from other retirement accounts into a Roth IRA. Roth IRAs offer tax-free growth and tax-free distributions in retirement. There are no required minimum distributions with Roth IRAs, allowing your savings to continue growing.
  2. Use life insurance for tax-free income: Invest in life insurance options that provide a death benefit for your family. If you don’t pass away unexpectedly, you can withdraw money from these policies tax-free.

Implementing these strategies can significantly reduce your tax burden and maximize your retirement savings.

Step 2: Get rid of unnecessary portfolio fees

Comprehending the expenses linked to your portfolio and retirement accounts is crucial. It’s imperative to have a thorough understanding of the associated charges and their potential impact. To optimize your savings, follow these steps:

  1. Eliminate excess fees: Identify and eliminate unnecessary fees, especially on underperforming assets. This will ensure you get the most out of your hard-earned money.
  2. Establish a personal pension: Replace bonds in your portfolio with fixed-indexed annuities (FIAs) to create a fee-efficient and market-efficient investment option. This will help you generate safe and predictable income streams during retirement.

By reducing portfolio fees, you can maximize your retirement income and make the most of your savings.

Step 3: Generate more income from your savings

Retirement is all about income, not just the size of your nest egg. To create a smart income plan, consider the following:

  1. Assess expected income sources: Look at your expected income sources during retirement, such as Social Security, pensions, and personal pensions. Consider establishing a personal pension using FIAs to supplement your income.
  2. Focus on retirement income: Instead of solely focusing on the size of your savings, prioritize creating a retirement income plan. This will ensure you can sustain your desired lifestyle throughout your retirement years.

Building a “Results in Advance” plan for your retirement requires careful consideration and strategic decision-making. By minimizing taxes, eliminating unnecessary fees, and generating more income from your savings, you can create a solid foundation for a secure and comfortable retirement. Start planning early and seek professional advice to maximize your retirement years.

The top 5 retirement tips for 2024

As you plan for your retirement in 2024, it’s essential to consider some key strategies that can help you achieve a secure and comfortable future. Here are five retirement tips to keep in mind:

  1. Diversify your retirement portfolio: By spreading your investments across different asset classes, such as stocks, bonds, and real estate, you can reduce the risk of losing all your savings in case of a market downturn. Consider working with a financial professional to create a well-balanced, diversified portfolio that aligns with your risk tolerance and retirement goals. 
  2. Maximize your retirement contributions: Take advantage of the maximum contribution limits for retirement accounts such as 401(k)s and IRAs. In 2024, the contribution limit for 401(k)s is $23,000, while the limit for IRAs is $7,000 for individuals aged 50 and older. By contributing the maximum amount allowed, you can benefit from tax advantages and potentially grow your retirement savings faster. 
  3. Plan for healthcare costs: Healthcare expenses can be a significant burden during retirement. Plan for these costs and consider options such as long-term care insurance or health savings accounts (HSAs). HSAs offer tax advantages and can be used to cover qualified medical expenses in retirement. Explore Medicare options and understand how it fits into your overall healthcare strategy. 
  4. Continuously educate yourself: Retirement planning is an ongoing process, and it’s essential to stay informed about changes in laws, regulations, and investment strategies. Attend seminars, read books and articles, and consider working with a financial professional who can provide guidance and keep you updated on the latest retirement trends and opportunities. 
  5. Create and stick to a budget: A realistic budget is essential for a successful retirement. Take the time to assess your expected income, including Social Security benefits and any other sources of retirement income. Then, determine your anticipated expenses and create a budget that aligns with your financial goals. Regularly review and adjust your budget to ensure you’re on track to meet your retirement objectives.

Following these retirement tips can enhance your financial security and allow you to enjoy a fulfilling retirement in 2024 and beyond. Remember: It’s never too early or late to start planning for retirement, so act today to secure your future.

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Ford Stokes is a licensed financial advisor who hosts Retirement Results, a financial radio show, on the John Frederick’s Radio Network on 18 stations in 9 states on Saturdays and Sundays. Ford is an author of three financial education books including, Annuity 360, Taxes Are on Sale and The Smart Retirement Plan Book. He educates prospects and clients to help them invest and retire successfully. Retirement Results is an advertiser on the John Fredericks Media Network.

Investment advisory services are offered through Brookstone Capital Management, LLC (BCM), a registered investment advisor. BCM and Active Wealth Management are independent of each other. Insurance products and services are not offered through BCM but are offered and sold through individually licensed and appointed agents.
Ford Stokes and/or Active Wealth Management are not affiliated with or endorsed by the Social Security Administration or any other government agency.



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