It’s not what you save. It’s what you keep.
Most people measure retirement by the balance on their statement. But three silent risks decide how much of it you actually get to spend: taxes, a market crash at the wrong moment, and simply living longer than your money. A defensive plan addresses all three.
Depending on your other income, a large share of your benefits can become taxable — including income from your own retirement accounts.
Traditional retirement accounts require minimum withdrawals starting at 73 (75 if born in 1960 or later) — whether you need the money or not.
A downturn in the years just before or after you retire can permanently shrink the income your savings can support.
Every dollar in a traditional 401(k) or IRA has a tax bill attached. If tax rates are higher when you retire, you keep less of what you saved.
When you’re young, you have time to recover from a crash. Five years from retirement, you don’t. That’s when protection matters most.
People are living into their 90s. Without income that’s guaranteed for life, a long retirement can become a financial worry.
The problemTwenty years of diligent saving — all of it tax-deferred. Every dollar they withdraw in retirement will be taxed as income, at whatever rates exist then.
Strategies we might explore: building a tax-advantaged bucket alongside it, such as indexed universal life, where cash value can be accessed through policy loans that are generally not taxed as income.
The problemA couple has a solid nest egg — almost all of it exposed to the market. A major downturn now could push their retirement back by years.
Strategies we might explore: moving part of their savings into a fixed indexed annuity — growth potential linked to an index, with principal protected from index losses.
The problemTheir plan assumes savings need to last 20 years. Good health and family history suggest it may need to last 30.
Strategies we might explore: an annuity with lifetime income — a personal pension that keeps paying for as long as they live.
The problemThey watched a parent need years of care, and saw the savings disappear. They don’t want that for their own children.
Strategies we might explore: life insurance with chronic-illness living benefits, which can help pay for care — and still leave a benefit for the family if it’s never needed.
Illustrative scenarios, not real clients. Tax rules change and depend on your situation — we coordinate with your CPA or tax professional.
If you hesitated on even one, a 20-minute conversation is worth your time.
We’ll look at where your savings sit today, show you how taxes and market risk could affect them, and explain the strategies that protect your retirement income.
Or call Aman (703) 672-3989 · Shubhra (571) 274-0187