Do you know how much you should have saved to retire? What if you want to retire by 60 or 65 – maybe even sooner like 50? The answer depends on many variables in your life and potential income sources.

There’s not really a “magic number” like, “If you have __, you can retire at __ years old.” We first need to figure out what your anticipated income needs will be in retirement – we can call this educated guessing. Once we have our best estimate (guess) of your expenses, we can start to uncover how much you might need for retirement.

 This post was last updated on April 30, 2023, to reflect all updated information and best serve your needs.

The IRS established required minimum distribution (RMD) rules on IRAs and similar tax-deferred savings plans to eventually collect on the taxes previously deferred. RMD rules require you to begin making withdrawals from certain retirement accounts when you reach age 73.

 This post was last updated on April 30, 2023, to reflect all updated information and best serve your needs.

Retirement accounts grow from pre-tax (deductible) contributions during employment. During retirement, account withdrawals, or distributions, are then taxed as ordinary income. To many entering retirement, it would make sense to let these accounts sit, accruing tax-deferred value to further build their savings and/or inheritance to pass on.

Retiring early might sound nice, but not if you’re forced into it!  If you are forced to retire sooner than you planned, you’ll need to prepare yourself for your next chapter a bit abruptly.  You may not have saved as much money as you had hoped, or this may mean smaller dreams for you.

Regardless of what forced you to retire early, there are steps you can take to improve your financial position. Let’s talk about what you need to consider if you find yourself in this situation.

Deciding on when to draw Social Security based on only one or two factors could be a huge mistake.  As you approach retirement, your financial life doesn’t necessarily become less complicated.  In some ways it gets even more complex.

It may seem like making the right decision is pretty straightforward.  However, once you include all the different income, tax, and lifestyle variables, it isn’t that easy.  At NextGen Wealth, we help guide you through these decisions in a deliberate and methodical approach.

The safety of your money is important when working with a financial planner for the first time. You worked hard to save for retirement. Protecting your assets may be why you’re hiring a financial planner in the first place.

The type of financial planning professional, compensation models, business structures, and legal protections are all important considerations. Not all firms manage investments the same - some don’t manage investments at all.

Setting your date to retire can be one of the most stressful decisions you’ll ever make. Maybe you’ve been anticipating this day for a long time - or dreading it. Retirement means different things to different people, but no matter what, you still need to prepare.

Let’s talk about the five things that you need to consider: what you are retiring to, current income versus retirement income, current expenses versus retirement expenses, having enough resources (money), and changes to your plan.

Earning a pension is a feat all to itself. Maintaining the security of your pension becomes even more important once you enter retirement. Luckily, there are programs like the Pension Benefit Guaranty Corporation (PBGC) looking out for your pension as well.

Although the name can be misleading, the PBGC is ran by the federal government to ensure retirement security for pensioners. There are laws governing what benefits you might receive if your covered pension fails. This could be another consideration for whether you should take a lump sum instead of a pension.

Kansas City is one of the most interesting and fulfilling places to live in the country. There are three big reasons why you should consider staying in Kansas City for retirement – the people, lifestyle, and affordable health care. Sure, there are many other places in the country to retire to, but there really is something special about Kansas City.

Where you stay or move in retirement is critical to many aspects in retirement planning. Actually, many important decisions in retirement revolve around physical location. You and your financial advisor need to plan out taxes, housing rates, medical care, and so many other variables tied to where you live.

Inflation can really eat into your retirement if you’re not careful. However, with proactive planning, you can effectively combat inflation. You don’t have to let inflation slowly erode your lifestyle over time.

To be clear, there’s little we can do to eliminate inflation completely. However, you can avoid losing purchasing power over time. A properly constructed portfolio can withstand the damage of inflation.

Deciding how to spend down your life savings can be stressful. Working hard for decades to accumulate a nest egg is no easy feat. Spending money in retirement can be challenging because you don’t want to accidentally spend too much and mess things up.

Fortunately, you’re not the only one going through this, and you don’t have to do it alone. There are a multitude of options for what to do with the money you’ve worked hard for.

This post was last updated on April 28th, 2023, to reflect all updated information and best serve your needs. 

If you have a retirement account like a 401(k) or IRA, Required Minimum Distributions (RMDs) can be a real drag in retirement. Knowing if RMDs will affect your retirement is critical so you can make the right adjustments now and moving forward.

This post was last updated on April 29th, 2023, to reflect all updated information and best serve your needs.

If times are tough, a hardship withdrawal from your 401k might sound like a good solution. Hold your thoughts and do lots of research first. There are irreversible consequences to taking a hardship withdrawal for emergency situations.

When talking about retirement planning, most of the focus is on how and where you’ll be saving money. While that should be your primary concern, you also need to figure out what comes after - withdrawing money to fund your retirement. 

In this article, we’ll talk about the different rules regarding traditional and Roth IRA withdrawals. Depending on your situation and your needs in retirement, you can maximize your earnings while minimizing your tax burden. Here are the tips that you need to know. 

Roth IRAs are one of the most fruitful investment accounts for people trying to develop a healthy nest egg. Among their numerous benefits, the tax-free growth and retirement distributions with Roth IRAs can set you up for maximum retirement earnings. 

Unfortunately, high-income earners are generally barred from taking advantage of a Roth IRA. In 2020, single earners with an annual income exceeding $139,000 were limited to a traditional IRA only.

There may be several points in your life that are ideal to retire, but when is best for you? As you approach retirement, you might be wondering, “Is there an ideal age to retire?” Of course, this depends on your unique personal and financial situation.

It’s understandably difficult to pinpoint exactly what retirement will look like. Did you know five years ago exactly what your life would look like today? Yeah, we didn’t either.

Roth conversions are one of the most powerful methods for maximizing long-term tax savings. If you believe that a Roth conversion might be something you could benefit from, the next question is how much to convert. The right amount will vary based on your situation.

Once you’ve decided to implement a Roth conversion strategy, you’ll want to look at areas of opportunity. We usually look at projected cash flows throughout retirement and attempt to find any dips in income. Dips in income may be opportunities for additional Roth conversions.

You hear the words “diversified portfolio” all the time, but what does diversified even mean? At first, we’re not even comfortable asking because it feels like something we should know, but don’t. Let’s explore what being diversified really means and why you need a diversified portfolio.

You might be surprised at how little it really takes to be “diversified.” There are a lot of technical terms surrounding portfolio construction, but you don’t need to get too wrapped up about those. We’ll talk a lot more about your overall risk in your portfolio.

Recessions and down markets are scary, but they can also offer lots of opportunities too! If you’re wondering what to do with your money, you’re not alone. When markets get sideways, folks tend to look to make moves to protect their assets.

Depending on what your financial life looks like, you can employ a number of tax saving strategies and other methods to boost your financial stability. There are some particularly useful strategies for down markets.

Can you still retire in a recession or “down” market? Many have done it, but there’s so much to think about when things don’t feel very optimistic. Don’t worry.

There are lots of things you can’t control like the markets and when recessions will occur. Many other things you can. Let’s look at what needs to happen to successfully retire in a down market.