![\"Solving](\"https:\/\/bulmanwealth.com\/wp-content\/uploads\/2022\/09\/Solving-for-Variables-in-Retirement-1024x683.jpg\")
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Think way, way back to Algebra class. You had to solve for variables, typically labeled \u201cx.\u201d When there was just one unknown, this was pretty simple to do. But as more multiple variables started appearing, it got more complicated. Unfortunately, when planning for retirement, there are often several variables at play \u2013 an unpredictable market, potentially staggering long-term care costs, and the possibility of higher taxes in the future. Here are some tips on solving these variables in retirement.<\/p>\n
Don\u2019t Assume You\u2019ll Time the Market Successfully <\/strong>\u00a0<\/strong><\/p>\n It\u2019s very difficult to time the market correctly. A major rebound could happen in a single day, making the probability of missing it high if you only follow a \u201ctiming-the-market\u201d strategy. Consider the findings of a study on what would happen to a hypothetical $10,000 investment into an S&P 500 index fund from January 2002 to January 2022. Staying invested throughout the entire time period resulted in gains of 9.4%. But, missing the ten best days of the market resulted in gains of only 5.21% while missing the best 30 days resulted in gains of 0.32%.[1]<\/a><\/p>\n How Much Long-Term Care Will You Need?<\/strong><\/p>\n While it\u2019s hard to say what your health will be like decades from now, the need for long-term care may be more common than you think: Someone turning age 65 today has almost a 70% chance of needing some type of long-term care later in life.[2]<\/a><\/p>\n How Much Will You Pay in Taxes in Retirement?<\/strong><\/p>\n Your tax bill might be higher than you\u2019d expect in retirement. Depending on your income, up to 85% of your Social Security benefit can be taxed. Distributions from traditional IRAs and 401(k)s are taxed at ordinary income tax rates. If you have a pension, those payments could be taxed as well. All of your taxable income sources in retirement could add up, not to mention any capital gains you realize from selling stocks, bonds, property, or valuables. Don\u2019t underestimate your tax burden, and don\u2019t forget about tax planning in retirement.<\/p>\n By removing as many variables from the retirement equation as you can, you can gain a better sense of how much money you\u2019ll have in retirement and what you can do to create a solid plan so that it lasts for the rest of your life. We can help you assess retirement unknowns and create a plan for the future. Sign up for a time to meet with us and discuss any uncertainties you have about your retirement plan.<\/p>\n <\/p>\n Disclosure: 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 adviser prior to implementation. Advisory services are offered by Chris Bulman Inc. dba Bulman Wealth Group an SEC Investment Advisor notice filed in California, Pennsylvania, Texas, and Nevada. Investment Advisory Services also offered through Retirement Wealth Advisors, LLC. a Registered Investment Advisor. Bulman Wealth Group and Retirement Wealth Advisors, LLC. are separate entities, independently owned. Insurance products and services offered through Chris Bulman Inc dba BWG Insurance Agency and Ameritas Life Insurance Corp. CA Insurance License #0D57586. Being registered as an investment adviser does not imply a certain level of skill or training.<\/p>\n 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.<\/p>\n The information contained herein 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 of California, Pennsylvania, Texas, Nevada, or where otherwise legally permitted.<\/p>\n Images and photographs are included for the sole purpose of visually enhancing the website. None of them are photographs of current or former Clients. They should not be construed as an endorsement or testimonial from any of the persons in the photograph.<\/p>\n Purchases are subject to suitability. This requires a review of an investor\u2019s objective, risk tolerance, and time horizons. Investing always involves risk and possible loss of capital.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":" Think way, way back to Algebra class. You had to solve for variables, typically labeled \u201cx.\u201d When there was just one unknown, this was pretty simple to do. But as more multiple variables started appearing, it got more complicated. Unfortunately, when planning for retirement, there are often several variables at play \u2013 an unpredictable market, […]<\/p>\n","protected":false},"author":9,"featured_media":7046,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[42,37],"tags":[],"yoast_head":"\n[1]<\/a> https:\/\/www.chase.com\/personal\/investments\/learning-and-insights\/article\/tmt-february-eighteen-twenty-two
\n[2]<\/a> https:\/\/acl.gov\/ltc\/basic-needs\/how-much-care-will-you-need#:~:text=Someone%20turning%20age%2065%20today,for%20longer%20than%205%20years<\/p>\n
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\nAll 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 indication of future results.<\/p>\n