As another year ends and a new one begins, it’s a good time to ask: Is your retirement plan prepared to support you for the many years ahead?

Considering how rising costs in California may impact your retirement savings and investment plans, a thorough year-end review can help you prepare for expected and unexpected expenses, identifying gaps in your strategy.

In this post, Bulman Wealth Group will walk you through key elements to assess in your retirement planning in California, from reviewing your savings and setting realistic goals to maximizing income and planning for long-term care. These year-end insights can make a meaningful difference if you’re looking to boost your financial confidence in California.

Assessing Your Current Financial Situation

Start with a clear view of your current financial situation, as it’ll help you see where you stand and identify needed adjustments.

Review All Your Assets

Take stock of your assets:

• Retirement plans and investment accounts: Assess the performance of your 401(k)s, IRAs, brokerage accounts, and other investments. Are they meeting your goals, and is there a need for repositioning?

• Real estate and businesses: Evaluate the value of any real estate holdings or businesses. Consider market conditions and whether these assets are performing as expected.

Review Liabilities and Debts

Understanding your liabilities is as important as tracking your assets:

• Debt overview: Take note of mortgages, credit cards, and loans. Are your debts increasing or decreasing?

• Debt strategy: Consider whether you should focus on paying down specific debts to improve your financial position as you near retirement.

Evaluate Income

Look at both your current income sources and how they may change:

• Income stability: Is your income rising, stable, or decreasing? This could include full or part-time work, pensions, or investment income.

• Impact of taxes and inflation: Review how taxes, inflation, and rising expenses could impact your income over time, especially if you’re already retired or it’s approaching soon.

Assess Your Savings Goals

Reflect on your savings progress:

• Last year: Did you reach your savings goals this past year?

• Next year: Consider your savings target for the new year and any changes needed to stay on track for retirement.

Bulman Wealth’s team of fiduciary financial advisors in California can update your financial plan and offer recommendations to strengthen your retirement strategy.

Setting Realistic Retirement Goals

After reviewing your current situation, it’s time to consider your retirement goals and see if they match your lifestyle and needs. Here’s how to tackle this step.

Define Your Retirement Lifestyle

Start by envisioning the lifestyle you hope to enjoy in retirement. Think about these factors:

• Location and housing: Where do you want to live? Consider whether you’ll stay in California, downsize, or relocate to a new area.

• Travel and activities: Include any travel plans, hobbies, or volunteer work that are important to you.

Estimate Your Retirement Expenses

With your lifestyle in mind, estimate the costs associated with it:

• Plan for the expected: Include regular expenses and anticipated needs.

• Plan for the unexpected: Build an emergency fund for unplanned expenses, such as major home repairs, that aim to protect your savings.

There are many factors to consider; partnering with an experienced financial advisor in California, like those with Bulman, can help you create a tailored savings and investment plan that fits your lifestyle and goals.

Maximizing Your Retirement Income

Here are strategies to help you make the most of your savings and take advantage of retirement tax benefits in California.

Social Security Claiming Strategies

Maximize your Social Security benefits by carefully timing your claim:

• Spousal benefits: If married, coordinate claims to optimize combined income.

• Delay for higher payments: Waiting until age 70 can significantly increase monthly benefits.

Tax-Efficient Withdrawal Strategies

Minimizing taxes on retirement income helps preserve your savings. Key strategies include:

• Roth IRA Conversions: Convert funds to a Roth IRA for future tax-free withdrawals, potentially lowering tax liability.

• Required Minimum Distributions (RMDs): Starting at age 73, you must take RMDs from retirement accounts. Coordinate these withdrawals with other taxable income to help minimize tax impacts.

• Tax-loss harvesting: For taxable investment accounts, consider selling those with losses to offset gains and reduce your tax bill.

Investment Strategies for Retirement

Managing investments in retirement requires balancing growth with stability. Key strategies include:

• Diversification: Spread investments across asset classes to reduce risk.

• Asset allocation: Adjust your asset mix to align with your goals and time horizon, shifting toward preservation as you near or enter retirement.

• Income generation: Focus on income-generating investments like dividend-paying stocks or bonds to support your retirement needs.

• Risk management: Regularly assess and manage risk to help protect against market volatility and unexpected downturns.

Aiming to Protect Your Assets and Planning for Long-Term Care

Year-end reviews of your estate, healthcare, and insurance plans are crucial to aim to secure your assets as retirement approaches.

Estate Planning

A comprehensive estate plan can help ensure your wishes are honored by your loved ones:

• Trusts: Specify how you want your assets distributed and consider setting up trusts to manage wealth transfers to avoid probate.

• Beneficiary designations: Check if any updates are needed and make sure you have both primary and contingent beneficiaries.

• Power of attorney: Appoint someone to make financial or healthcare decisions if you cannot.

Long-Term Care Planning in California

With high medical and long-term care costs, early preparation can ease future financial strain:

• Health insurance: Secure adequate Medicare, Medigap, or Medicare Advantage coverage for healthcare expenses.

• Long-term care insurance: Helps cover extended care costs, including in-home or nursing facility care.

• Medi-Cal eligibility: California’s Medi-Cal provides limited long-term care assistance; be aware of asset limits and plan accordingly.

Partner With Bulman Financial Advisors in California

Planning for retirement is an ongoing journey that requires thoughtful reflection and proactive decision-making. Bulman’s team is here to guide you confidently through these complexities.

Our California-based services focus on five key areas: investment management, retirement income planning, healthcare in retirement (including long-term care planning in California), legacy planning, and tax planning.

We’ll work closely with you to review your financial situation, clarify your goals, and refine your retirement plan to help keep you on track.

Please schedule a consultation with us today to explore strategies designed to support your retirement goals and long-term financial security.

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.