Comprehensive Financial Solutions, Inc.

440-343-4223

Certain Uncertainties in Retirement

The uncertainties we face in retirement can erode our sense of confidence, potentially undermining our outlook during those years.

Indeed, according to the 2017 Retirement Confidence Survey by the Employee Benefits Research Institute, only 18% of retirees say they are “very confident” about having enough assets to live comfortably in retirement. Almost 40% were either “not too confident” or “not at all confident.“

Today’s retirees face two overarching uncertainties. While each on their own can lead even the best-laid strategies to go awry, it’s important to remember that remaining flexible and responsive to changes in the landscape may help you meet the challenges of uncertainty in the years ahead.

An Uncertain Tax Structure

A mounting national debt and the growing liabilities of Social Security and Medicare are straining federal finances. How these challenges will be resolved remains unknown, but higher taxes—along with means-testing for Social Security and Medicare—are obvious possibilities for policymakers.

Whatever tax rates may be in the future, taxes can be a drag on your savings and may adversely impact your retirement security.¹ Moreover, any reduction of Social Security or Medicare benefits has the potential to place a further strain on your retirement.

Consequently, you’ll need to be ever mindful of a changing tax landscape and strategies to manage the impact.

Market Uncertainty

If you know someone who retired, or looked to retire in 2008, you know what market uncertainty can do to a retirement blueprint.

The uncertainties haven’t gone away. Are we at the cusp of a bond market bubble bursting? Will the Euro Zone find its footing? Will U.S. debt be a drag on our economic vitality?

Over a 30-year period, uncertainties may evaporate or resolve themselves, but new ones historically have emerged. This means understanding that the solutions for one set of economic circumstances may not be appropriate for a new set of circumstances.

Scottish Philosopher Thomas Carlyle said "He who could foresee affairs three days in advance would be rich for thousands of years.”² Preparing for uncertainties is less about knowing what the future holds as it is about being able to respond to changes as they unfold.

  1. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation.
  2. Brainy Quote, 2017

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright 2019 FMG Suite.

Share |
 

Related Content

Should You Ever Retire?

Should You Ever Retire?

A growing number of Americans are pushing back the age at which they plan to retire. Or deciding not to retire at all.

IRA Withdrawals that Escape the 10% Tax Penalty

IRA Withdrawals that Escape the 10% Tax Penalty

The list of IRA withdrawals that may be taken without incurring a 10% early penalty has grown.

Investment Strategies for Retirement

Investment Strategies for Retirement

Investment tools and strategies that can enable you to pursue your retirement goals.

 

Have A Question About This Topic?







Thank you! Oops!

What Is a Roth 401(k)?

Roth 401(k) plans combine features of traditional 401(k) plans with those of a Roth IRA.

Volunteering in Retirement

For many, retirement includes contributing their time and talents to an organization in need.

Social Security: Two Benefit Strategies Eliminated

Here are several important changes to Social Security that may impact how and when you can begin taking income benefits.

View all articles

Estimate Your RMD

Help determine the required minimum distribution from an IRA or other qualified retirement plan.

Roth 401(k) vs. Traditional 401(k)

This calculator compares employee contributions to a Roth 401(k) and a traditional 401(k).

Saving for Retirement

This calculator can help you estimate how much you may need to save for retirement.

View all calculators

Retirement Plan Distributions

There are a number of ways to withdraw money from a qualified retirement plan.

Investment Strategies for Retirement

Investment tools and strategies that can enable you to pursue your retirement goals.

An Inside Look at Retirement Living

A number of questions and concerns need to be addressed to help you better prepare for retirement living.

View all presentations

Should You Tap Retirement Savings to Fund College?

There are three things to consider before dipping into retirement savings to pay for college.

The Power of Tax-Deferred Growth

Why are 401(k) plans, annuities, and IRAs so popular?

Tuning Your Social Security Benefit

When should you take your Social Security benefit?

View all videos