Welcome
Mark Gabelman RETIREMENT INCOME AND LEGACY PLANNING
I help people lower retirement income tax risk, maximize guaranteed income and protect money from health care emergencies
First get a handle on what could happen in retirement
Eliminate and Minimize Risks to your Retirement Income
There are several potential risks that can impact your retirement plans. It's important to be aware of these risks and take steps to mitigate them. Here are some common risks to consider:
Market Risk: Investments in stocks, bonds, and other assets are subject to market fluctuations. Market risk refers to the possibility of your investments losing value due to factors such as economic conditions, geopolitical events, or changes in market sentiment. A significant market downturn, especially close to or during retirement, can have a substantial impact on the value of your retirement savings.
Inflation Risk: Inflation erodes the purchasing power of money over time. If the rate of inflation exceeds the rate of return on your investments, the value of your savings may not keep up with rising prices. This can reduce your standard of living and impact your ability to meet future expenses during retirement.
Longevity Risk: Living longer than expected is a risk that many individuals face in retirement. While increased longevity is positive, it also means you'll need to support yourself financially for a longer period. If you haven't saved enough or planned for a longer retirement, you may outlive your savings and struggle to maintain your desired lifestyle.
Healthcare Costs: As you age, healthcare expenses tend to increase. Rising medical costs, long-term care needs, and potential gaps in Medicare coverage can all impact your retirement finances. Failing to adequately plan for healthcare costs can deplete your savings or require you to compromise on your medical needs.
Sequence of Returns Risk: As discussed earlier, the order of investment returns can significantly impact your retirement savings. Experiencing poor investment performance in the early years of retirement, especially if coupled with withdrawals, can lead to a diminished portfolio and reduce its ability to recover.
Tax and Legislative Changes: Changes in tax laws and regulations can affect your retirement income and investment strategies. Alterations to retirement benefits, Social Security, or healthcare programs can impact your financial planning. Staying informed about potential changes and adjusting your plans accordingly is crucial.
Personal and Family Circumstances: Unexpected events such as a job loss, a major illness, or supporting family members financially can impact your retirement savings. These personal or family-related financial challenges can disrupt your retirement plans and necessitate adjustments to your budget and savings goals.
To mitigate these risks, it's essential to engage in comprehensive retirement planning. This includes saving and investing early and regularly, diversifying your investments, considering risk tolerance, creating an emergency fund, and obtaining appropriate insurance coverage. Seeking professional financial advice can also help you develop a retirement strategy that addresses your specific circumstances and risk tolerance. Regularly reviewing and adjusting your plans as needed is key to staying on track and ensuring a more secure retirement.
protected lifetime income
Secure Your Retirement with this Proven Strategy and Unlock Lifelong Income and Tax Advantages
Unlocking the Power of LIRPs: Secure Your Financial Future with a Powerful Strategy
Are you ready to take charge of your financial future and achieve peace of mind during retirement? Look no further than LIRPs (Life Insurance Retirement Plans). Designed to be the game-changer you've been seeking, LIRPs offer a unique blend of growth potential, tax advantages, and lifelong income guarantees.
Imagine a retirement where you don't have to worry about market volatility or the fear of outliving your savings. With LIRPs, you can enjoy the best of both worlds: growth potential tied to market performance, with a floor of protection against downturns. It's a powerful combination that ensures your retirement nest egg is shielded from unpredictable market swings.
But that's not all. LIRPs also provide incredible tax advantages. Imagine the ability to accumulate wealth on a tax-deferred basis, allowing your money to grow faster without the burden of immediate taxes. And when the time comes to access your funds, you can do so in a tax-efficient manner, potentially reducing your tax liabilities and maximizing your retirement income.
What truly sets LIRPs apart is their ability to generate a reliable stream of income that can last a lifetime. By leveraging the power of annuities within the policy, you can create a customized retirement income plan tailored to your unique needs. Say goodbye to the uncertainty of traditional retirement plans and embrace the security and predictability that LIRPs offer.
As a trusted retirement income planner, I specialize in helping individuals like you harness the full potential of LIRPs. Together, we can build a solid foundation for your retirement, ensuring financial freedom, and the ability to live life on your terms. Let's embark on this journey towards a worry-free retirement and unlock the true power of LIRPs.
Protect your assets with Mark Gabelman Retirement and Legacy Planning
Navigate Retirement with Confidence; Understanding Sequence Risk for Long-Term Financial Security
Sequence risk, also known as sequence of returns risk, refers to the potential negative impact that the order, or sequence, of investment returns can have on a portfolio's value, particularly during the withdrawal phase of retirement.
The order in which investment returns occur becomes crucial for individuals who are withdrawing funds from their investment portfolio to cover their living expenses during retirement. If a retiree experiences poor investment returns early in their retirement years, it can significantly impact the longevity of their portfolio.
For example, consider two individuals who retire with identical portfolios and withdraw the same amount of money each year for living expenses. However, Individual A experiences a series of poor investment returns in the initial years of retirement, while Individual B enjoys strong investment returns during the same period.
Since Individual A's portfolio is hit with losses early on, the withdrawals they make to cover living expenses are taken from a reduced portfolio value. This combination of withdrawals and poor returns can lead to a faster depletion of their portfolio and a diminished ability to recover from the losses. On the other hand, Individual B, who benefits from favorable returns early in retirement, has a larger portfolio base from which to withdraw and can better withstand any subsequent market downturns.
Sequence risk can significantly impact the sustainability of a retirement portfolio, as the timing of market returns becomes critical. It highlights the importance of not only the average return but also the order and volatility of those returns during the retirement phase. Mitigating sequence risk can be achieved through strategies such as diversification, asset allocation, and having a well-thought-out withdrawal plan that takes into account market fluctuations.
Understanding sequence risk is essential for retirement planning as it helps individuals make informed decisions about asset allocation, investment strategies, and withdrawal rates, aiming to minimize the potential negative effects of unfavorable market sequences and increase the longevity of their retirement savings.
Essential Medicare Planning Tips
Medicare Choices: First choose; if a Medicare Advantage or a Medicare Supplement is best for you?
Medicare risk refers to the potential financial exposure and uncertainties individuals may face when relying on the Medicare program for their healthcare coverage. While Medicare provides valuable benefits, there are still certain risks and limitations to be aware of.
One aspect of Medicare risk is related to out-of-pocket expenses. While Medicare covers a significant portion of healthcare costs, it doesn't cover everything. Beneficiaries are responsible for paying premiums, deductibles, copayments, and coinsurance, which can vary depending on the specific Medicare plan and services received. These out-of-pocket costs can add up, particularly for individuals with extensive medical needs or those who require services not fully covered by Medicare.
Another aspect of Medicare risk is related to coverage limitations. Medicare has certain coverage gaps and exclusions, such as prescription drugs (Part D coverage) and certain types of care like dental, vision, and long-term care. These gaps may require individuals to seek additional insurance coverage, such as a standalone prescription drug plan or private supplemental insurance (Medigap) to help fill these coverage gaps.
Furthermore, Medicare risk can also stem from potential changes to the Medicare program itself. The program is subject to modifications in terms of eligibility requirements, covered services, reimbursement rates, and other factors. These changes can impact the level of coverage and the costs individuals may incur, introducing uncertainties and potential financial risks.
To mitigate Medicare risk, individuals can take several steps. First, it's essential to thoroughly understand the various Medicare plans and coverage options available, as well as their associated costs and limitations. This knowledge enables informed decision-making regarding enrollment and supplemental coverage.
Additionally, individuals can explore supplemental insurance options, such as Medigap plans or Medicare Advantage plans, to help bridge the gaps in coverage and provide additional financial protection. Regularly reviewing and reassessing coverage needs and comparing plans during the annual Medicare open enrollment period is also advisable to ensure the most suitable coverage is in place.
Understanding Medicare risk empowers individuals to make proactive choices to manage their healthcare costs and coverage effectively. By staying informed, exploring supplemental coverage options, and regularly evaluating their healthcare needs, individuals can navigate Medicare risk and secure the necessary coverage for their well-being in retirement
