Welcome
Mark Gabelman RETIREMENT INCOME AND LEGACY PLANNING
I am living a hybrid-retirement helping other people live their best retirement, whether it's full time retirement or not.
People hate annuities but love social security and pensions
Annuities provide protected and guaranteed lifetime income, like Social Security or pensions do
Most of the reasons Ken Fisher has to hate annuities are the same reasons I love them. But remember, no one should have all their money in annuities. Just as no one should have all their money subject to Stock market or interest rate risk.
You should have a proper allocation of financial assets spread across the spectrum.
Life Insurance and Annuities can provide the basic "FLOOR" of your retirement income plan, covering the expenses we know that we will always have. Providing you with peace of mind and better returns than a retirement plan that does not incorporate guaranteed income annuities. Email me for a report from Ernst & Young supporting annuities in retirement planning. OR
Ask Me about medicare
There is a lot more to Medicare than simple signing up!
There are a lot of moving parts to Medicare. So here are some links to get you started on understanding how it works.
Click here for a Introduction to Medicare
Click Here to see the Parts of Medicare
Ask me how to maximize your Social Security benefits
When to file for Social Security can be complex. Let's explore your options together
Early Social Security retirement refers to the option for individuals to start receiving Social Security retirement benefits before reaching their full retirement age. The full retirement age (FRA) is the age at which you're entitled to receive your full Social Security retirement benefits, based on your birth year.
Here are some key points about early Social Security retirement versus waiting until full retirement age:
Early Retirement: You can start receiving Social Security retirement benefits as early as age 62. However, if you choose to start receiving benefits before reaching your full retirement age, your monthly benefit amount will be permanently reduced. The reduction in benefits is calculated based on the number of months you receive benefits before reaching full retirement age.
Full Retirement Age (FRA): Your full retirement age is determined by your year of birth. For example, for individuals born in 1960 or later, the full retirement age is 67. For those born before 1960, it's slightly lower. If you wait until your full retirement age to start receiving benefits, you'll receive your full, unreduced benefit amount.
Delayed Retirement Credits: On the other hand, if you delay receiving Social Security retirement benefits beyond your full retirement age, you can earn delayed retirement credits. These credits increase your benefit amount by a certain percentage for each year you delay, up until age 70. Delaying benefits can result in significantly higher monthly payments for the rest of your life.
Factors to Consider: The decision of when to start receiving Social Security benefits depends on various factors, including your health, financial needs, other sources of retirement income, and
your longevity expectations. While starting benefits early provides immediate income, it also means receiving lower monthly payments for the duration of your retirement. Conversely, delaying benefits can lead to higher monthly payments, but you'll receive fewer total payments over your lifetime if you don't live long enough to make up for the years of delayed benefits.
It's important for individuals to carefully consider their options and potential financial implications before deciding when to start receiving Social Security retirement benefits. Many people weigh factors such as their health, financial situation, and anticipated retirement lifestyle when making this decision. Consulting with a financial advisor or Social Security representative can also provide valuable guidance based on your individual circumstances.
Watch out for IRMAA!!!
People with Higher Income Pay Higher Premiums for Medicare Part B and Part D.
IRMAA stands for Income-Related Monthly Adjustment Amount. It's a surcharge added to Medicare Part B and Part D premiums for individuals with higher incomes. The purpose of IRMAA is to help cover the costs of Medicare by requiring wealthier individuals to pay higher premiums.
Medicare Part B covers medical services like doctor visits, outpatient care, and some preventive services. Medicare Part D covers prescription drug coverage. If you have a higher income, as defined by the IRS, you may be subject to IRMAA, which means you'll pay an extra amount on top of your standard Medicare premiums.
The income thresholds for IRMAA can change annually and are based on your modified adjusted gross income (MAGI) from two years prior. If your income exceeds certain thresholds, you'll pay higher premiums. The Social Security Administration typically notifies individuals if they're subject to IRMAA and what their adjusted premiums will be.
We can run a report to show you how this could effect your retirement. Just email or call us.
Minimize rate of return risk from the Stock Market
Navigate Retirement with Confidence; Understanding Sequence Risk for Long-Term Financial Security
Sequence risk, also known as rate 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.
Instead of dodging tax torpedo's, sink the sub first
The difference between tax-deferred and tax-free is humongous
Required Minimum Distributions have sunk more estate plans than any pack of you boats. Make sure to do some income modeling or cash flow analysis to understand your risks to this mandated withdrawal. The ROTH IRA is the very best account you can have.
Call or email me to explore your options.
