Retirement Planning That Puts Taxes at the Center
Retirement planning is about more than deciding how to invest your money.
As retirement approaches, decisions about taxes, retirement income, Social Security, investments, insurance, and estate planning become increasingly connected. A decision in one area can affect the others.
Harbor Wealth helps pre-retirees and retirees coordinate these decisions as part of a comprehensive retirement plan.
Based in Westchester, Illinois, we work with clients throughout the western Chicago suburbs and beyond.
What Does Retirement Planning Really Mean?
For many people, retirement planning starts with a simple question:
“Do I have enough?”
But answering that question requires more than looking at an account balance.
How much income will you need? When should you claim Social Security? Which accounts should you draw from first? What might your tax situation look like before and after retirement? How should your portfolio be positioned for the years ahead? What happens to the plan if markets decline? And does your estate plan reflect what you want to happen to your assets?
These decisions are connected.
Our approach is to look at the broader financial picture and coordinate the major decisions that shape your transition into retirement.
Our Five-Pillar Retirement Planning Process
1
Retirement Tax Planning
Taxes are one part of the retirement equation—but they can affect many other decisions.
We consider tax planning as part of the broader retirement strategy, including questions involving Roth conversions, required minimum distributions, Social Security taxation, retirement withdrawals, and coordination with your tax professional.
2
Retirement Income Planning
Retirement changes the question from “How much have I saved?” to “How will I use it?”
We evaluate retirement income sources, withdrawal strategies, Social Security, and the relationship between your spending needs and available assets.
The objective is to develop a retirement income strategy that reflects your circumstances, priorities, and financial plan.
3
Retirement Risk Planning
A retirement plan has to account for more than investment markets.
We review potential risks that could affect your financial plan, including property and casualty insurance and umbrella coverage, along with other areas of risk that may be relevant to your circumstances.
4
Retirement Investment Planning
Your investment strategy doesn't exist separately from your retirement plan.
We consider your investment strategy in the context of your retirement timeline, income needs, financial circumstances, and tolerance for investment risk.
That includes considering how your portfolio may fit into the broader plan before and during retirement.
5
Estate Planning Review
Retirement planning also raises a different question: what happens to your assets after you're gone? What if you get sick?
We review your estate planning arrangements and consider how they fit with your broader financial plan. When appropriate, we coordinate with your attorney and other professional advisers.
Questions to Consider Before Retirement
- Can I afford to retire?
- When should I take Social Security?
- When does a Roth conversion make sense?
- How should I withdraw from my retirement accounts?
- Is my portfolio appropriate for retirement?
- What happens to my plan if the market falls significantly?
- Is my estate plan up to date?
These are the questions that deserve to be considered together, rather than in isolation.
