At Eric Scott Financial, we’ve worked with people on their retirement planning for decades, and during that time, we’ve helped people make decisions at important points along their journey. Our retirement planning process encompasses what we call “The Five Crossroads.” Here is a brief summary of each one.
- Retirement Income
Once you stop working and having a regular paycheck coming in, your income becomes a top priority. We look at optimizing your Social Security along with any pensions, and then we help you create income streams from the assets you’ve accumulated. Our goal is to set you up with reliable income you cannot outlive, regardless of the economy, the stock market—no matter what.
- Tax Reduction
Surprise, you may owe big taxes in retirement. Even Social Security income can be taxed depending on your situation! Planning ahead is the only way to help make sure you pay less tax, especially when RMDs (Required Minimum Distributions) kick in at 70-1/2, when you will be forced to take money out of qualified, tax-deferred accounts like 401(k)s whether you need the money or not.
We look at seven key areas in your tax return, and analyze many ways to reduce your taxes owed, including charitable giving. (Request our charitable giving whitepaper.)
- Risk Management
Risk management involves hedging risk, whether it’s the risk of losing money in the stock market, the rising cost of healthcare in retirement, or the risk of needing long-term care at some point in your life. We help our clients select the right Medicare coverage for their needs and find ways to make sure that their other risks are covered and insured properly. There are many new options today that weren’t available a decade ago.
- Budget and Debt Planning
If you do go into retirement with debt, we want to take a look at the best ways to manage that. And when it comes to your budget, living within your means is only part of it. Investing properly is critical to protecting your nest egg as well as outpacing inflation. We utilize tactical wealth managers to help get your portfolio to cash quickly during downturns or crashes, and help find low-risk ways to take advantage of bull markets whenever possible.
- Legacy Preparation
It’s estimated that seven out of 10 people do not have their beneficiaries set up correctly. And the beneficiaries you designate on 401(k) plans and insurance policies take precedence over your estate planning documents, like wills and trusts. That’s why the fifth crossroad we help you navigate includes an estate plan to pass on wealth to your chosen heirs in the most tax-advantaged and efficient way possible.
Call Eric Scott Financial in St. George, Utah for a complimentary review of each retirement crossroad you will be facing before you retire. You can reach us at 435.773.9444.
Have you seen our video about The Five Crossroads? View it here:
Watch for Eric Scott’s expanded and updated book, The Five Crossroads, How the Choices We Make Affect Our Retirement Journey, coming in 2019!