Live the Dream

An investment policy will be developed for you based on your planned spending. Then portfolio withdrawals are monitored to verify the allocation is properly maintained and distri­b­u­tions are not excessive. The investment goal while you are living the dream is to grow your income so you can keep pace with inflation. Rodgers & Associates helps you keep up by using the 4% rule for prudent withdrawals as a guide. An industry study¹ found that an investment portfolio with the proper asset allocation may be able to sustain annual withdrawals of 4% and keep pace with inflation. Our regular portfolio review for each client can provide confi­dence that their investment strategy is working and stays on track to reach their goals.

We educate our clients about healthcare coverage options and choosing the right coverage can be compli­cated. Many seniors rely on Medicare to provide their health insurance coverage. We educate our clients about a range of healthcare coverage options because Medicare does not cover every­thing. There may be reasons a client should choose a Medicare Advantage plan over tradi­tional Medicare. We help our clients work through the pros and cons so that they can make a choice for their unique situation.

When should you draw Social Security benefits? Should your spouse draw first? These are questions we help clients answer to get the most from this important government program. The Social Security website contains more than 2,700 separate rules governing when benefits can be claimed and how. It is important our clients get this right the first time. We feel a financial strategy should consider other income sources, taxes and potential health issues to determine the optimum time for each client to sign up for benefits.

Human beings are social by nature. We thrive on inter­action with each other which may have been found daily through work. You will want to find ways to stay engaged with family, friends, and your community. Transi­tioning out of a lifestyle with deadlines can create a different kind of stress. You should still have goals and keep track of things you want to accomplish.

Did you know that Social Security can be taxable based on your income? Or that Medicare premiums are deter­mined by your Modified Adjusted Gross Income? Our tax-efficient approach to retirement planning, the New Three-Legged Stool™ strategy, is designed to minimize taxes and Medicare premiums. Part of each quarterly review is devoted to minimizing taxes by analyzing the best place to draw income for each client’s situation. A 2019 study² evaluated the impact of tax-efficient distri­b­u­tions on the sustain­ability of withdrawals and found the most tax-efficient sequence could extend the portfolio seven and a half years longer than the least tax-efficient sequence!