Adjusting Your Retirement Plan for 2024’s Economic Challenges

2024 could be an interesting year for investing retirement assets due to the uncertain market conditions that persistent inflation, earnings fluctuations, and a Presidential election will impact. So, the question is: “Will my current retirement plan protect the value of my assets in a prolonged down market?”

This highlights why retirement planning in Roseville will be more important than ever this year and into the future. Working with a fiduciary retirement planner who can guide you through various market conditions with comprehensive financial planning and advice tailored around your financial circumstances, goals, and risk tolerance is the key to pursuing the type of retirement you are working so hard to pursue and maintain. 

What used to be the norm of working for one company until retirement and enjoying a stable pension payment for life is increasingly rare. Today, the burden of securing a comfortable retirement rests largely on you, often with some help from your employer’s matching contributions. Accumulating enough savings for a comfortable retirement takes dedication, persistence, discipline, and patience.

We get it. With people living longer due to medical and technological advancements, it’s possible that your retirement could last 30 years or longer. The notion of outliving your money is not one to take lightly. That’s why your retirement plan should reflect your unique life situation, with room to adapt to unexpected twists and turns – those ‘what if’ moments.

Our team of Roseville retirement planners specializes in helping our clients create sustainable retirement plans that can withstand various market and economic conditions for the rest of their lives.

In this blog, we’ll look at common retirement concerns and proactive steps you can take to prepare yourself for 30 years of retirement. 


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Retirement Planning in 2024: Common Retirement Concerns

As financial planners in Roseville, CA, we focus on helping successful individuals and their families develop comprehensive wealth management strategies focusing on retirement planning. Many new clients we work with have personal finance-related concerns, especially when accumulating enough retirement assets. 

  1. Do I have enough assets saved up to retire when I want to?
  2. Am I using the right investment strategy aimed at growing and protecting my assets?
  3. How can I save more retirement assets in a tax-efficient manner?
  4. How can we plan for my retirement so that my income lasts as long as we do?
  5. How should I plan for rapidly rising healthcare costs in retirement?

Bulman Wealth Insights: Our team of Roseville financial advisors understand how your retirement savings can be affected by factors like inflation, taxes, longer life spans, volatile securities markets, and major life events. Our role is to provide financial advice that helps you construct a retirement plan that accommodates the known and unknown.

The bottom line is that if your retirement plan does not include these assumptions, the higher the probability you will risk running out of money late in life when you need it the most.

Social Security Planning

Many people take Social Security for granted and assume that when they turn 65 and are retired, they should immediately start taking their Social Security benefits. This is true for some people, but not everyone. Planning when you should begin taking benefits is not as one-dimensional as you might think. It takes serious planning to make sure you make the right decision.

Like many retirement planning issues, there is no one-size-fits-all solution. You need the services of fiduciary financial advisors in Roseville who can provide the knowledge and experience to develop solutions tailored to your needs.

It starts with understanding all of the sources of your retirement income. This could include Social Security, passive income from other investments, such as real estate, pensions, income from other investments, and any required minimum distributions (RMDs) you must take from traditional IRAs or 401k plans.

Then, you need to look at the amount of benefits you will receive based on your current age. The IRS rules determine your ability to take Social Security benefits using the full retirement age calculation: 

  • If you were born from 1943 to 1954, your full retirement age is 66. 
  • For those born between 1955 and 1959, the age gradually rises from 66 and 2 months to 66 and 10 months.
  • For anyone born in 1960 or later, the full retirement age is 67.

As an example, if you opt to claim your benefits early, at age 62, you will receive a smaller monthly amount, which could be up to 40% less than if you waited until your full retirement age. This could pose a challenge later in your retirement, especially if Social Security is a significant part of your retirement income.

On the flip side, you can delay receiving benefits past your full retirement age, up to age 70, which can increase your monthly benefit considerably – by as much as 8% for every deferred year, plus the annual cost of living adjustment (COLA). Delaying distributions could be beneficial if longevity runs in your family and you want to maximize your benefits in your 70s, 80s, and 90s.

But there’s more to it than just the size of your monthly check. You should also think about tax implications. Your Social Security benefits may be partially taxable, depending on your total income. This can happen if you have significant income from other sources, like IRAs and personal savings accounts.

Bulman Wealth Insights: When you begin taking Social Security benefits, it should be based on your short and long-term income needs, health status, and life expectancy. Early benefits could be the right decision if you need income now or have health concerns. Delaying might offer more security and potential tax advantages in the long run. 

Taking a Proactive Approach to Your Retirement Planning

You should have a well-thought-out retirement plan that is reviewed at least annually for many reasons. It has limited value if it sits on a shelf in a closet collecting dust.

The most effective retirement plans are an important part of the foundation that will provide a secure, comfortable lifestyle for the rest of your lives. It can also help fund your legacy for future generations. 

When your plan is an important part of your foundation, it has to be reviewed, managed, and updated regularly. This proactive process helps you stay on track, particularly if unexpected events impact you.

Here’s how we recommend managing your retirement plan: 

  • Regularly assess your retirement savings to keep pace with inflation and changing economic conditions. You may need to save more money for retirement than initially planned.
  • Given the unpredictability of today’s economy and global stabilization, diversifying your investment portfolio can help protect your assets from localized economic downturns.
  • Work with your financial advisor to keep abreast of global and local economic trends, as they can directly impact your investments and retirement plans.
  • Given the complexities of the current economic environment, consulting with a financial advisor can provide personalized strategies to optimize your retirement planning.

About Bulman Wealth

At the heart of what we do is crafting retirement plans that are simple and clear. Think of us as your guides who always have your back. As financial fiduciaries, we must always put your interests above all else. We offer a complimentary 30-minute conversation to address your biggest retirement concerns and suggest strategies to help you look forward to a bright future. Let’s connect.

All content is for information purposes only. It is not intended to provide any tax or legal advice or provide the basis for any financial decisions. Nor is it intended to be a projection of current or future performance or an indication of future results.

Opinions expressed herein are solely those of Chris Bulman Inc. dba Bulman Wealth Group and our editorial staff. The information contained in this material has been derived from sources believed to be reliable but is not guaranteed as to accuracy and completeness and does not purport to be a complete analysis of the materials discussed. All information and ideas should be discussed in detail with your individual advisor prior to implementation. Investment advisory services are offered through Chris Bulman Inc dba Bulman Wealth Group, an SEC Registered Investment Advisor. Insurance products and services are offered through Chris Bulman, Inc. dba BWG Insurance Agency and Ameritas Life Insurance Corp., CA State Insurance License # 0M46922. Being registered as an investment advisor does not imply a certain level of skill or training.

Bulman Wealth Group, BWG Insurance Agency and Ameritas Life Insurance Corp. are not affiliated with or endorsed by the Social Security Administration or any other government agency.

Any statements or opinions expressed should in no way be construed or interpreted as a solicitation to sell, or offer to sell, advisory services to any residents of any State other than the States where otherwise legally permitted.

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Purchases are subject to suitability. This requires a review of an investor’s objective, risk tolerance, and time horizons. Investing always involves risk and possible loss of capital.

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