Your Retirement Planning Strategy Should Change as Your Income Grows

Dec 27, 2021 | Retirement Planning

Your retirement planning strategy might be rendered obsolete by your rising income level. Now is the time to reevaluate your long-term priorities and resynchronize your retirement objectives with your growing wealth.

It may seem like a delightful problem, but accumulating wealth is not without its challenging consequences. What once seemed like a prudent retirement plan might now seem antiquated given the growth of your income and resources. It’s vital you take steps to help ensure your money does all it is capable of doing.

Security is Job One.

In their early years, many investors concentrate on accumulating enough wealth to ensure a secure, well-funded retirement. But when you achieve what once seemed like a formidable task, you realize you have the latitude to address other concerns, such as ensuring your estate reflects your personal values for your family and society. In some cases, your old retirement plan may be too narrow to encompass the various decisions you’ll want to make about your wealth over the remainder of your life.

Insuring the future.

Insurance has the potential to do many wonderful things beyond paying a cash benefit someday. It can lock in portions of your wealth free from market volatility.* But it can also serve as the basis for funding various entities, such as trust funds, annuities, foundations, and endowments. You should consider capitalizing on these possibilities by including an insurance component that will allow you to control your wealth for decades to come.

Heads you might win, tails you might win.

Of immediate concern is how to restructure your retirement portfolio for maximum benefit. Two factors interact in a fascinating way. On the one hand, you can afford to assume riskier investments with higher return potential, having already established a secure financial foundation. On the other hand, you can afford to manage your risk by radically enlarging the variety of assets, thereby increasing diversification. You can also consider exploring the many alternative investments available only to accredited investors.

Time to reassess your tax strategy.

Estate planning is just the beginning of your tax strategy. You want to minimize your current and future taxes, so you have more money left over to accomplish your long-term goals. A financial professional can help you determine what other tax-friendly strategic elements could benefit you.

Revitalize your retirement plan.

When you consider how much you can potentially accomplish through an optimized retirement plan, you may not want to delay reviewing it another month. Call me to set up a consultative session where we can re-establish the relevancy of your retirement plan and align it to your life’s successes.

Disclosures:

*Life insurance policies contain exclusions, limitations, reductions of benefits, and terms for keeping them in force. Your financial professional can provide you with costs and complete details. Guarantees are based upon the claims paying ability of the issuer.

Alternative investments may not be suitable for all investors and should be considered as an investment for the risk capital portion of the investor’s portfolio. The strategies employed in the management of alternative investments may accelerate the velocity of potential losses.

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

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