Lake Point Advisory Group

Imagine you’ve saved your target amount for retirement and are on track to receive your optimal Social Security benefit. Many think these are the only things to take care of, but retirement planning consists of much more. It’s also crucial to consider how much risk you’re taking and how much risk your money can manage. No one can predict the next 30 years of market ups and downs, how long they’ll live for, or what their tax rates will be in 10 years. Here’s what to consider when assessing risk in retirement. Market Risk Chances are most retirees will have to live through at least one bear market. In fact, the average retiree will likely face three to five such bear markets in retirement. It’s important to consider historical trends like these, as well as possible worst-case scenarios. Take the COVID-19 pandemic: Few foresaw it, or its full effect on the market. But, many panicked and sold before seeing a recovery and may have experienced a significant financial setback in or close to r...

There’s a good chance you’ll need long-term care for some period of time later in life. Longtermcare.gov estimates that, on average, 70% of those turning age 65 can expect to need some form of long-term care. With the high costs of nursing homes and in-home health aid, as well as the complex nature of Medicaid, it’s important to plan for how you can cover the costs and use the benefits available to you. Lake Point Advisory Group can help you   determine which methods of paying for long-term care are right for you and your family and secure your legacy for generations to come.

Even if you don’t plan to rely primarily on Social Security for income in retirement, it’s still an important part of your retirement plan. Despite its importance, only 4% of retirees claim Social Security benefits at the optimal time, losing out on an average of $111,000 per household, according to a recent study. You might have many worries in today’s world, especially when planning for retirement. But, when it comes to Social Security, focus on what you can control. Is Social Security Recession-Proof? While Social Security benefits aren’t affected by the stock market (unlike income from investments), it doesn’t mean the system can’t be affected by the COVID-19 pandemic. Increased lifespans and a declining birth rate were already putting a strain on the Social Security trust fund, which was projected to run dry by 2035. But, after a period of increased unemployment and financial strain that can cause Social Security beneficiaries to claim benefits early, that date could change. The i...

Your healthcare needs can change in retirement, as can the way you pay for them. At 65, most Medicare beneficiaries must start navigating a new system. If you are or will be a Medicare beneficiary, one important date that should make it onto your calendar is October 15th. This is the beginning of the Medicare Open Enrollment period, which ends on December 7th. Everyone knows that good healthcare is important for a good retirement, but unless you’ve been a Medicare beneficiary for a number of years, you might not know how the enrollment process works, or how to pick the best plan for you. Between  the rising cost of healthcare in retirement   and even more Medicare Advantage plans to choose from for 2020, there’s a lot to know about your healthcare needs in retirement. During the open enrollment period you can Switch from Original Medicare to Medicare Advantage, or vice versa. Switch from one Medicare Advantage plan to another Switch from Medicare Part D, which covers prescript...

Here’s proof that funding retirement has changed: In 1970, 45% of private-sector employees were covered by a pension plan. Now, 4% are covered. Pensions have largely been replaced by 401(k), IRAs, and similar retirement plans, and retirees must find a way to make their savings last throughout retirement. If you are lucky enough to have a pension, you still have important decisions to make as to how you want to receive payments. Pension or no pension, you should have a plan for creating retirement income. Can You Rely On Your Pension? Last year, General Electric announced plans to freeze pension benefits for over 20,000 employees and to offer pension buyouts to about 100,000 former employees. This is part of a larger trend in the private sector, where there is no guarantee that companies that originally promised pensions will follow through. If workers do receive their pension, they may have to decide between larger payments over their lifetime, or smaller payments over both their and t...

A wise strategy to maximize your Social Security benefits claim may result in additional retirement income. Social Security retirement benefits help provide lifetime, inflation-adjusted income. Combined with your retirement savings, plus any pension benefits you may receive, Social Security may serve as an important component of your overall plan for retirement income. Don’t automatically think that claiming Social Security benefits early is your best decision. It may have been the right choice for your parents, but it could be the wrong choice for you. Remember, your need for income and views about life expectancy will only be two of many important factors in determining when to receive benefits. Lake Point Advisory Group   can help you customize a report that will show you how, when and why to file for Social Security.

We all know that a 401(k) is one of the most important retirement planning tools we have. The potential tax benefits and power of compound interest can make it a great saving and investment tool for anyone who practices financial discipline and contributes regularly. There are several important things to know about your 401(k), such as how much you can contribute, options for your 401(k) when you leave your job, and how much you are paying in 401(k) fees. You Have Options for Old 401(k)s When you leave a job, you can either cash out of your 401(k), roll it over into a 401(k) at your new job, leave your money in the old 401(k) with your former employer, or roll it over into an IRA. While in many cases, you can leave your 401(k) with your former employer, this can complicate your finances if you end up with multiple 401(k)s. Cashing out may mean a large tax burden since funds will be taxed as ordinary income. However, if you roll your old 401(k) into a new one, you will not pay tax on th...