Retirement Planning for Executives and Medical Professionals.

Retirement Planning for Executives and Medical Professionals

The approach to retirement may look different depending on when you begin planning and which age you wish to retire. And, for high-income professions, there's a lot to consider when maximizing your retirement income with tax efficiency and thoughtful estate and legacy planning.

Planning can begin at any stage of your career. In fact, the sooner you start, the more opportunities you'll have to save, take advantage of employer benefits and implement long-term strategies ensuring you have a reliable retirement income that will cover your discretionary and non-discretionary expenses so you can enjoy this phase of your life journey. As your financial partner, we help you build towards a secure retirement future.

Here's How Old Peak Finance Can Help

  • Identify your retirement goals and develop a plan based on your priorities.
  • Assess your preparedness to retire and address any income shortfalls.
  • Build a plan to meet retirement income needs by identifying sources of income and assets available to generate income.
  • Create a financial strategy based on when and how you want to retire
    • A phased approach that transitions to full retirement
    • Transition to a lower-income career, consulting, or part-time work
    • Full retirement
  • Strategically claim social security and pensions to coordinate with your life plan and minimize taxes.
  • Use executive compensation now to plan for retirement income streams in the future.
  • For medical professionals in private practice, implement retirement vehicles to defer taxes now and build income for retirement.
  • Plan required minimum distributions (RMDs)
  • Plan legacy giving utilizing QCDs (Qualified Charitable Distributions)
  • Address risks faced during retirement such as uncertain life expectancy, funding longevity needs, inflation, death of a spouse, an unpredictable stock market, and increasing health care expenses or a long-term care event

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Types of Executives and Medical Professionals We Help

  • Professionals seeking to build a retirement portfolio
  • Retired professionals looking for comprehensive financial planning and  wealth management
  • Professionals seeking to leave a financial legacy for their families or nonprofit
  • Executives and Medical professionals transitioning to retirement within the next five to ten years
  • Mid-career professionals looking to maximize retirement savings and assets
  • Young professionals and doctors starting their careers with their first 401k, ESSPs, 403bs, Roths, and IRA retirement plans

Why Work with Old Peak Finance

As an Executive or Medical Professional, thinking of retiring - no matter what your age, can feel overwhelming. Financial Planning reduces risks and protects what's most important to you.

To safeguard your future and provide for your family today and into the years to come, we help you evaluate your complete financial picture. As fiduciaries, we take an oath to put your interests first. Therefore, you can trust that you receive experienced, knowledgeable advice personalized for your goals and life situation.

How We Help

Your challenges, and how our CERTIFIED FINANCIAL PLANNERS™ help:

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BUILD YOUR RETIREMENT PLAN

Situation

You envision retirement as having the freedom to pursue new interests - or spend time on activities you love.  You may want to enjoy time with family, travel, or leave a legacy without compromising your lifestyle.

Being a high achieving professional may mean having a complex retirement mix that includes deferred compensation, stock options (RSOs, ISOs, NQSOs), multiple IRAs, and retirement plans from various companies. With your retirement within the next five to ten years, you need to forecast your future income needs and understand if you're on track.

Solution

Your retirement is as unique as you are. Today, career professionals are choosing when and how they want to retire, sometimes choosing a phased approach that reduces work hours and stress but still provides income.

This might include downshifting careers, consulting, or working part-time. This might include downshifting careers, consulting, or working part-time.

Old Peak Finance helps you with timing and planning:

  • Estimate your slow-down salary and retirement income needs
  • Understand the right time for you to tap into retirement savings (401k, IRA, Pensions)
  • Knowing when to take distributions or Social Security benefits which can have a lasting impact on your retirement income
  • Understand how working during full retirement age retirement impacts your taxable income
  • Rebalancing your portfolio to reduce risk and maximize growth
  • Withstand market volatility, inflation, and policy changes
  • Pass on generational wealth and assets with tax and transfer efficiency

ESTIMATING YOUR RETIREMENT INCOME

Situation

You have multiple retirement income sources but can't or don’t wish to access them until age 59½, 65, 70 or 72. Funding the gap years between when you want to retire, and the age at which you efficiently use your retirement savings is murky. You know you can use home equity and annuities to supplement monthly income, but you're not sure what's best for your situation and wonder how it will impact situations such as taxable income or funds you wish to pass on to your family. There are strategies for creating bridge streams of income to enable the maximum efficiency for claiming social security and required minimum distributions (RMDs).

Solution

Old Peak Finance will assess your situation and provide experienced advice on achieving your retirement goals. Beginning with your estimated income needs, we look at how to maximize your retirement income, evaluate assets that can become income, and financial products that can help extend your investments for as long as you need.

Typical sources of retirement income include:

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  • Social Security
  • Disability
  • 401k
  • Individual Retirement Accounts (Roth IRA, Traditional IRA)
  • Required Minimum Distributions (RMDs)
  • Pension
  • Military Benefits
  • Annuities
  • Reverse Mortgages
  • Property and Assets
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FINANCIAL MANAGEMENT

Situation

You're ready to simplify everything, including your financial planning. In other words, you are in the decumulation phase. You want a partner who can provide trusted advice on taxes, insurance, estate planning, financial products, and wealth management.

Solution

Together, we build a financial plan that meets your goals and provides income stability for your retirement. In addition, we assess your insurance needs, protect your net worth, and provide transparency, so you always know your money is working for you.

Old Peak Finance does not sell financial products or make commissions on our recommendations. Our advice is based solely on your best interest.

Our Comprehensive Financial Planning Includes:

  • Evaluating your current retirement and investment plan
  • Help identify and prioritize financial goals
  • Planning for health and life insurance needs
  • Estate planning
  • Identify sources of retirement income and assets that can contribute to future income
  • Planning for uncertainty, increasing healthcare expenses, and inflation
  • Guidance to maximize Social Security benefits
  • Planning for tax implications on retirement income sources, including Social Security and retirement account withdrawals

Wealth Mangement & Investment Planning

  • With better health care and longer life expectancies, your retirement may need to last 30 years or more. Create a plan that provides a reliable income regardless of how long you need it.
  • Your retirement income is taxable, but there are ways to minimize the impact on long-term savings and benefit distributions.
  • Thoughtful planning on how best to pass wealth and assets to your children and heirs.
  • Reevaluate your plan between ages 75 & 80 to account for income shortcomings or plan for greater longevity needs.

Insurance Planning

  • Life Insurance provides immediate financial benefits to your beneficiaries to assist with end-of-life expenses and debt. We help you navigate your options:
    • Term Life Insurance
    • Whole Life Insurance
    • Universal Life Insurance
  • Retirement also means health insurance needs once covered by an employer are now your responsibility. We help you estimate your needs and options to provide the level of care you need now and in the future.

Estates, Generational Wealth and Charitable Gifts

  • We begin with foundational estate planning documents: wills, financial and healthcare powers of attorney, and advanced healthcare directives.
  • Create a comprehensive plan for passing wealth to your survivors.
  • Create beneficiary instructions for your retirement plans, as there may be significant balances to disperse.
  • Assess tax-smart ways to pass assets to family members.
  • Evaluate the need for trusts.
  • Update power of attorney and health care directives on a regular basis as you age.

Personal Tax Planning

  • Timing when you begin receiving Social Security benefits may impact your taxable income and reduce your benefits. We help you understand the best time to request benefits and how they affect your survivors.
  • Understand how 401k and pension deferment affects your tax liability.

 

 

 

 

Financial Planning Resources for Retirement Planning

We write a lot about the importance of retirement planning. Here are a few of blogs on the subject.

Frequently Asked Questions

Planning for retirement can begin with your first job. Your employer's 401k, Roth IRA,  retirement plan, stock options, and life insurance can provide a foundation for your future.

The 4% rule suggests you may safely withdraw 4% of your savings during the first year of retirement while adjusting for inflation each year thereafter. Inflation fluctuations and the volatility of the stock market makes this rule outdated.

Yes, and if you claim your Social Security benefits early while you still have income from others sources, the tax implications could be significant. Smart planning provides the right amount of income while minimizing your tax risks.

The answer to this question is "it depends".  We will always review to your financial plan first to look at how paying off your mortgage early will help you achieve your financial retirement goals.  In some cases paying off a mortgage might reduce your monthly expenses.  In other cases, paying a mortgage can help by increasing your interest rate tax deduction

(However, if your cash reserves are low or you have high-interest debt, you may want to prioritize those financial areas. Also, consider the need to increase catch up contributions to qualified retirement accounts.)

Life insurance provides immediate financial resources to your beneficiaries at the time of your death.  When we create and update your financial plan, we do an insurance analysis.  Then we will work with you to determine the type of policy you need is based on your age and future goals and needs.

Term Life Insurance - The policy is limited to a set number of years and pays out if the insured dies during the policy period.

Whole Life Insurance - Pays face value no matter the insured's age. Premiums will be paid until insured dies or reaches the age of 119.

Universal Life Insurance - You pay premiums the first year and can option to have flexible payments the following years. Insured can invest the cash value in general assets of the insurance company and assumes all risk.

For high-income earners, the percentage of Social Security payout is much lower. Finding the right age to begin your benefit is determined by your expected longevity and the overall income mix you will have during retirement. Delaying your benefit can provide higher income later in life when other income sources become diminished. One thing we know for sure, as one of the few sources of inflation protected streams of income,  social security is a valuable component of your retirement income. 

How to think about retirement

Retirement planning should be considered with every employment decision. Here are a few considerations.

  • Social Security and Pension benefits are often not enough to meet your needs, therefore, make planning for retirement income sources a priority.
  • Understand how long your assets will last and have a plan for taking withdrawals, using home equity, or investing in annuities.
  • Build a plan that mitigate risks faced in retirement
    • Uncertain life expectancy
    • Inflation
    • Early death of a spouse
    • Volatility in the stock market
    • Increasing health care expenses
  • Understand how selling a business or home impacts your tax liability.
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Have Questions?

Sign up for a complimentary call. We'll listen and determine together if we can help you achieve your goals.

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