Retirement Planning

Couple riding bicycles on a forest path

The main area of concentration of our firm is retirement planning from tax efficient accumulation to tax efficient distribution and/or transfer.

Many concerns that individuals have regarding retirement stem from the uncertainty of their expenses, inflation and time horizon.

The good news is that on average we are generally living much longer than previous generations on average. This good news means that if we want to enjoy a prolonged retirement, we will need considerably more assets to accommodate our needs. Pension plans have been on the decline over the past two decades with more than 80,000 private sector pension plans having terminated. There were approximately 112,000 plans in 1985 and only 30,460 plans in 2007. (Source: Pension Benefit Guaranty Corporation, 2007)

Medical costs are on the rise faster than inflation as we are spending more on medical costs than ever before. In 1950, medical care accounted for approximately 4% of consumer spending. However, by 2007, medical care had grown to account for nearly 17% of consumer spending. (Source: Bureau of Economic Analysis, 2007).

Taxes also take away from our nest egg. Income taxes are just one part of the pie; add this to consumption taxes, estate taxes, and possibly penalty taxes for early withdrawal from retirement accounts or failing to withdraw money after reaching age 70 ½. With all of these pieces depleting your nest egg, how much will be left for you? 

Senior couple in the park together

Inflation is the silent killer for many retirement plans as many individuals concentrate on the current income needs for this year and never look at the whole picture for their time horizon. What typically happens is that many individuals become too conservative with their portfolio too soon into retirement because they may have initially had a nice pension plan from their employer. Not taking time horizon and inflation risk into consideration could present long-term consequences.  If inflationary trends continue as it has been, fixed pensions would become a smaller percent of the income source placing a much heavier burden on the portfolio as most pensions do not adjust for inflation. Many individuals will not ever have a defined benefit pension plan and will need to accumulate substantially more to accommodate a prolonged retirement.

A proper financial plan will take into account all of these issues and many, many more.


Are you sure your current portfolio is on track for your retirement?
Is your current portfolio taking into account rising medical costs?
Do you have a clear understanding along with a written plan describing what your income sources are, where and when you will draw from these sources, and what is the most efficient tax strategy for your withdrawals?

Give us a call for your complimentary review.