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What Strategies Can Help Overcome Financial Hurdles in Retirement Planning?

What Strategies Can Help Overcome Financial Hurdles in Retirement Planning?

Navigating the complexities of retirement planning can often present financial hurdles that demand innovative solutions. We've gathered insights from seven esteemed financial professionals, including Lead Financial Planners and Certified Financial Planners™. They share unique strategies ranging from incorporating part-time work and restructuring investments to recommending Solo 401(k) plans for high earners.

  • Incorporate Part-Time Work and Restructure Investments
  • Utilize VA Disability and Social Security Programs
  • Suggest Delayed Social Security Claim
  • Employ Diverse Financial Solutions
  • Implement Tax-Efficient Retirement Strategies
  • Rightsize Expenses and Pursue Passion
  • Recommend Solo 401(k) for High Earners

Incorporate Part-Time Work and Restructure Investments

One unique strategy I used to help a client facing a shortfall in their retirement planning was incorporating part-time work into their initial retirement years. By leveraging their skills and passions, they were able to generate additional income, which reduced the strain on their savings and allowed their investments more time to grow. Additionally, we restructured their investment portfolio to include more income-generating assets, ensuring a steady cash flow while maintaining long-term growth potential. This dual approach provided them with financial security while easing their transition into full retirement.

Chad Lively
Chad LivelyLead Financial Planner, Lively Financial LLC

Utilize VA Disability and Social Security Programs

A veteran client had a shortfall in their retirement income. Upon further investigation, the veteran client was qualified for a VA Disability program. This meant they would receive income for life from this program. Combined with Social Security, the client was able to reach 33% of their income in retirement paid for and stable through these two government programs. This is a fitting tribute to their service to our country!

Dr. Adam Link
Dr. Adam LinkFinancial Advisor, Fireweed Capital

Suggest Delayed Social Security Claim

I once worked with a client, Tom, who was 55 and had saved a respectable $200,000. His goal was to retire at 62. Despite his diligent savings, Tom was concerned about the sustainability of his retirement income. To address this, I suggested a delayed Social Security strategy. By postponing his Social Security claim until age 70, Tom could potentially receive a higher monthly benefit. This strategy could provide a significant boost to his retirement income and help him achieve his financial goals.

Drew BlackstonCertified Retirement Counselor, Pearl Wealth Group

Employ Diverse Financial Solutions

As financial advisors, we have many arrows in our planning quiver. Here are a few:

Single client, no heirs, some savings, but enormous home equity. A reverse mortgage was the perfect solution.

Couples with good savings: showing them that the growth in their retirement accounts outpaces their projected and desired spending, meaning they'll be fine.

A new widow with no idea of her income or outflows. Extensive budgeting, giving her a financial snapshot, did the trick.

Glenn DowningPrincipal, co-founder, CameronDowning, Inc.

Implement Tax-Efficient Retirement Strategies

Our most unique and impactful strategy with clients involves reducing effective tax rates over time. We aim for individuals to pay taxes at the lowest possible rates, thereby lowering their total lifetime tax burden in real dollars. This is often achieved through Roth conversion ladders, strategic timing of retirement account distributions, and tax-efficient asset location. We engage in detailed tax planning with our clients and prefer to collaborate with their tax preparers to ensure the best outcomes.

Eric JohnsPresident and Lead Planner, Equilibrium Financial Planning LLC

Rightsize Expenses and Pursue Passion

It's not a popular thing in the financial sphere, but rightsizing one's expenses is one strategy. Fifteen years ago, a 58-year-old client had lost his executive job and hated his work. To maintain the lifestyle to which he had become accustomed, he needed to find a similar position.

I asked him, "If money was no object, what would you love to do instead?"

Without hesitation, he replied, "I would teach yoga." He was already doing this on the side.

So we ran the figures on what he would need to cut to make that happen. When we finished, I asked if he thought he could really be okay without the restaurant meals, weekend trips, and theater nights he would be giving up.

"Absolutely," he said. Not only did he do it, but he got a VA contract, making more than we ever projected he would, so he didn't have to give up as much.

Holly DonaldsonFounder, Holly Donaldson Financial Planning, LLC

Recommend Solo 401(k) for High Earners

I have recommended an individual 401(k) plan, also known as a solo 401(k), to a physician who had self-employment income so that he and his spouse could save money in a Roth retirement account. This strategy works great for highly compensated professionals who make too much money to contribute to Roth IRAs the traditional way, and who wish to avoid the potential tax complications of back-door Roth contributions. Another bonus is that you can build up your Roth retirement savings at a much faster rate because of higher contribution limits.

Phillip Bollin
Phillip BollinCertified Financial Planner™, Bollin Wealth Management LLC

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