How Retirement Planners in Phoenix Help You Face Reality
When it comes to retirement planning, you may have to forget conventional wisdom. Some of the generally accepted advice of the past may not be in your best interest. Following some of the old guidance could harm your retirement.
Working with retirement planners in Phoenix can help you avoid making serious mistakes. Professional advisors will help separate fact from fiction when it comes to investing for your golden years.
Here are some of the common misconceptions about retirement planning:
- You will need less income during retirement than what you currently earn – It is true you will eliminate some work-related costs when you leave your job. Things like commuting costs, daily lunches, work supplies and professional attire will go away. But often, these expenses are replaced with those for leisure activities. You may also incur higher health care costs as you age. And if you are still paying off a mortgage, your income needs may not decrease very much, if at all.
- You will reduce your taxes during retirement – This statement may also not be factual for many retirees. In many cases, retirees can expect to pay taxes on Social Security, pensions, portfolio income and retirement account distributions. In addition, the federal government may increase tax rates in the future.
- If your retirement funds are not sufficient, you can continue to work – Many retirees want to work during retirement to stay busy. Others must work to supplement their income. However, jobs must be available for older workers and your health must be good for you to be able to work. You may not be able to count on either of these things.
- Stock market gains will help make up for insufficient savings – Although the stock market over the years has delivered tremendous gains for investors, it has also impacted the life savings of some investors during crashes. No investor should bank on high returns from the stock market. Retirement planners in Phoenix will help you project realistic returns based on a variety of expected outcomes.
- You can rely solely on Social Security – The problems with the Social Security trust fund have been well documented for many years. According to the Social Security Administration, the trust fund is expected to remain solvent through 2036. After that, benefits could be cut for recipients, means testing may be conducted to determine benefit levels, or something else could be done to shore-up the system.
The key to avoiding a social security crisis is to work with retirement planners in Phoenix. Professional advisors can help you stay on an even keel — going forward with strategies and attitudes that are not too pessimistic and not too optimistic.
WealthTrust Arizona provides sound strategic recommendations to help clients reach their retirement planning goals. Whether retirement is a long way off or just around the corner, we work to preserve and grow your wealth so you don’t outlive your money. We develop a plan that considers your current assets, tax planning and risk management.
To learn more about retirement planners in Phoenix, call for a free consultation at (480) 483-7300 or contact us online today for more information.