Newsletter

Rodgers & Associates works to help high-net-worth individuals have a more efficient retirement plan, in ways reflected in these newsletters. If you enjoy what you find, please sign up to receive future issues using the form on the right.

Latest Newsletter: One Year from Retirement? What You Should be Doing to Get Ready

Posted on

Retirement is now just one year away. Let’s assume you have already addressed the big financial issue—you have enough money to retire. It is time to create a final checklist for the next twelve months. The goal should be to retire only once. No one wants to miscalculate and be forced to return to work for another year or more because they cannot afford to remain retired.

The following are some items to add to your one-year checklist:

Refine your budget.

You should have calculated how much money you plan to spend each year when you retire. Can you really live on that amount? We recommend using the 12 months before retirement as practice. For financial purposes, pretend you are retired and track your spending closely to make sure you can live on what you have budgeted. It’s better to find out now if spending is off than after you’ve left your job.

Understand your medical coverage.

Make sure you know well in advance what costs you will be responsible for and what your company will cover once you retire. What if your spouse is on your medical plan? Will you be able to continue covering them as a retiree? Many employers don’t provide any healthcare benefits for retirees other than COBRA (Consolidated Omnibus Budget Reconciliation Act of 1985). COBRA coverage will last for 18 months following separation of service. You can include spouses and dependents on COBRA. Seniors become eligible for Medicare at age 65. Retiring at 65 would solve the problem or retiring at age 63½ with COBRA. Younger retirees will need another plan.

Look at all your employer-provided benefits.

Dental, vision, life insurance, and disability are a few common employer-provided benefits. You may not need life insurance if you’ve grown your assets sufficiently and your house is paid off. However, dental and vision expenses will continue. This would be the year to take care of any dental or vision related issues while you still have coverage.

If you have a pension, make a payout choice.

Your options will include whether you want to include a benefit for your spouse—joint life expectancy for all or some portion of the benefit. You may want to consult a financial planner to help you evaluate this option. Once you make your pension election, the decision is often irrevocable. Generally, the option based on a single life expectancy will offer a higher monthly benefit, and the option based on joint life expectancy will provide lifetime income and more security for you and your spouse.

Decide on other distributions.

Many of today’s more popular defined contribution plans, such as 401(k) and 403(b) plans, offer a choice of lifetime income or a lump sum distribution. You should carefully consider all the options available to you. Some of the options could have serious tax consequences if the wrong choice is made. Gather information about your retirement plans, so you know the rules and deadlines for making your elections before you cash your last paycheck.

Review your most recent Social Security estimate of benefits.

One of the most important decisions you need to make is when to take Social Security benefits. Eligible workers can begin drawing benefits at age 62 but benefits increase each month you wait to draw until age 70. Smart use of your other retirement accounts and personal savings may be able to provide the income you need so you can delay starting benefits.

Consider how you’ll spend your time.

Some of the most important issues you need to face in retirement will involve lifestyle decisions. How will you spend your time when you’re not working anymore? Will you work as a volunteer or start a new vocation? How frequently will you travel, if at all? Will you spend winters in a warmer climate? Make sure you always have something scheduled that you can look forward to doing.

Retirement planning is an ongoing process. Picking up your gold watch does not mean you can rest easy. Each year, you will want to check in with your financial adviser to make sure your financial strategy is performing as expected and make any adjustments that may be needed to help you stay on track.

Ease into your new retirement lifestyle. Don’t make dramatic changes, such as selling your house and buying a new one in another part of the country. You should consider renting first to make sure this is really where you want to live. Don’t pull a big chunk of money out of a retirement account to pay off a mortgage or other debt. Doing so could reduce your monthly bills, but at what cost? Paying an additional 20% or more in taxes to pay off a 5% mortgage may not be a wise financial decision. Consult with a knowledgeable financial adviser for guidance on making these decisions.

Rick’s Insights:

  • Choosing health insurance through COBRA continues your employee coverage for 18 months after you separate from service.
  • Before you retire, make sure you know the rules and deadlines for making benefit elections on health insurance and retirement programs through your employer.
  • Retirement planning continues even after retirement. Annual reviews and updates can keep you on track for a comfortable retirement.

You’ve worked hard to save for retirement. How can you turn your wealth into an income that’s designed to last your lifetime?

Now that retirement is a reality, or will be soon, you probably have questions. Here on our website, you can find generalized advice, but don’t you deserve advice tailored just to you?

Clint Krushinsky is here to help you get answers. Simply call him at 717-560-3800 or 1-888-876-3437. He’ll answer your questions and help you get to know us. If we are a potential fit for each other, Clint can arrange for up to two hours of initial consultation with no cost or obligation and no sales pitch.

More Newsletters

February 6, 2020 — As You Approach Retirement, How You Save is Extremely Important
January 24, 2020 — Use the Ten Years Prior to Retirement to Position Yourself for Success
January 9, 2020 — Will Changes to the Life Expectancy Tables for RMDs Make a Difference?
December 26, 2019 — Are Your Heirs Ready? 3 Lessons to Teach Children About Wealth Now
December 12, 2019 — 6 Ways to Help You Reach Your Retirement Goals
November 21, 2019 — Worried About Running Out of Money in Retirement? What the Numbers Tell Us
November 14, 2019 — What should you do if your employer offers a lump-sum cash payout?
October 31, 2019 — Dos and Don’ts of Retirement Planning
October 17, 2019 — What to do if You Miss a Required Minimum Distribution (RMD): Report on IRS Form 5329
October 3, 2019 — Data Breaches are on the Rise: How to Protect Your Personal Information
September 19, 2019 — 5 Ways to Save for Retirement…before it’s too late
September 5, 2019 — Evaluating Where to Retire: Pennsylvania Vs. Surrounding States
August 22, 2019 — Are Qualified Charitable Distributions (QCD) Permitted from SEP IRA, SIMPLE IRA, 401(k) or 403(b) Accounts?
August 8, 2019 — Is Your Vacation Home a Residence or a Rental Property?
July 25, 2019 — The Waiting Game: When is the Best Time to Begin Social Security Benefits?
July 11, 2019 — What is Concierge Medicine?
June 27, 2019 — A Special Purpose Entity Enables Individual Participation in PA’s EITC Program
June 13, 2019 — How Qualified Charitable Distributions Can Impact Your Taxes and Favorite Charities
May 30, 2019 — Tax-Efficient Investing: Why Tax Planning and Investments Should Work Together
May 16, 2019 — RESA & SECURE Act Aim to Help Save for Retirement
May 2, 2019 — What We Can Learn from the Habits of Wealthy People
April 18, 2019 — 2 Ways to Help Children and Grandchildren Financially…Without Spoiling Them
April 4, 2019 — 3 Factors That Affect When to Take Social Security Benefits
March 21, 2019 — Why Optimism Can be Good for Investing
March 7, 2019 — How Do Retirees Get Paid in Retirement?
February 21, 2019 — Don’t Lose Track of Your Previous Employer Retirement Plans
February 7, 2019 — Understanding the 5 Tax Filing Statuses: Which is Best for You?
January 24, 2019 — Are Retirement Funds Exempt from Creditors, Including the IRS?
January 10, 2019 — Are You Taking Advantage of the Opportunities that Come with a Bear Market?
December 27, 2018 — Are You Due to Reevaluate and Switch Your Car Insurance?
December 13, 2018 — What Part Will Social Security Play in Your Retirement?
November 29, 2018 — What You Need to Know About Retirement Contribution Limits
November 15, 2018 — Do Target-Date Funds Hit the Target for Retirement Savers?
November 1, 2018 — A Guide to Required Minimum Distribution Rules for IRAs and Employer Plans
October 18, 2018 — Medicare Supplement Insurance Plans
October 4, 2018 — 5 Keys to Financial Success, Revisited
September 20, 2018 — Advantages of International Investments Against a Weak Dollar
September 6, 2018 — Planning an Overseas Vacation? Do you Have Appropriate Medical Coverage?
August 23, 2018 — 11 Things Everyone Should Know About Social Security Benefits
August 9, 2018 — Thinking of Helping Out Your Adult Child(ren) Financially? You Might Not be Helping.
July 26, 2018 — The DOL’s Fiduciary Rule is Dead. Can the SEC Clear Things Up for the Consumer?
July 12, 2018 — Understanding 403(b) and 457(b) Plans
June 28, 2018 — You Can’t Simply “Will” Your Heirs to Carry on the Family Legacy.
June 14, 2018 — Volatility is Not a Bad Thing. Learn to Embrace It.
May 31, 2018 — Converting an IRA to a Roth IRA? Know the Pro-Rata Rule
May 30, 2018 — 6 Reasons to File an Amended Tax Return
May 29, 2018 — How the Death of a Spouse Affects Taxes and Retirement Income
May 28, 2018 — Non-Profit Pledge Obligations: What You Need to Know
May 21, 2018 — How To Avoid Being Double Taxed On Your After-Tax IRA Contributions
May 17, 2018 — What is the IRS Form 1040-SR?
May 3, 2018 — Under TCJA, can Investment Advisory Fees Still have a Tax Benefit?
April 24, 2018 — Follow the Rules When Rolling Over Your Pension to an IRA
April 19, 2018 — When and Why You Should Convert an IRA to a Roth
April 5, 2018 — Is it Time for a Fire Drill? You Need a Strategy for When the Market Declines.
March 22, 2018 — Will Lower Corporate Tax Rates Yield Higher Wages?
March 15, 2018 — 5 Steps to a Successful NUA transaction
March 8, 2018 — Understanding The Tax Cuts and Jobs Act of 2017
February 22, 2018 — Are Your Online Habits Putting Your Accounts and Identity at Risk?
February 8, 2018 — Is Bitcoin an Investment or Speculation?
January 25, 2018 — The New Tax Law May Change How You Give to Charity
January 11, 2018 — How are Fee-Only Financial Planners Paid?
January 4, 2018 — Are You Keeping Up with Your Financial Plan’s Maintenance Schedule?
December 14, 2017 — Why Business Owners Should Diversify Their Portfolios
November 30, 2017 — How We Choose Funds for our Clients’ Investment Portfolios
October 26, 2017 — Why You Should Plan for Retirement Without Social Security and Pensions
September 28, 2017 — 5 Tips to Control Your Fear in Retirement
September 14, 2017 — Legacy Planning – How to Use Your Money and Wealth to Help Bring Your Family Together
August 31, 2017 — How Would You Define a “Trusted Adviser”?
August 17, 2017 — How Do You Measure a Life Well-Lived – And How Will Your Children?
August 3, 2017 — 7 Steps to Take When You Inherit an IRA
July 20, 2017 — What Does It Mean to Be a “Retirement Specialist”?
June 6, 2017 — The Impact IRS Budget Cuts Has on Your Chances of Being Audited
May 15, 2017 — 5 Crucial Ingredients for a Professional Advisory Relationship
May 2, 2017 — How to Deal with the Death of a Spouse From a Financial Perspective
April 14, 2017 — What you should know about ETFs
March 28, 2017 — What to Expect from President Trump’s First 100 Days in Office
March 14, 2017 — 5 Ways to Close the Retirement Gap and Increase Savings
March 3, 2017 — Tips on How to Determine if you should make a Roth Conversion
January 19, 2017 — Thoughts on Improving Retirement Readiness
January 4, 2017 — What Impact Will Inflation Have on Your Retirement?
December 8, 2016 — Maximizing the Value of Your Charitable Giving
November 29, 2016 — Don’t Retire Broke!
November 7, 2016 — What’s Next for the Stock Market Now That the Election is Over?
October 5, 2016 — Consider all of your alternatives before starting a foundation
August 25, 2016 — How You’re Saving For Retirement Is More Important Than Ever – Here’s Why.
August 11, 2016 — The Risks of Adding Your Child to Your Home’s Deed
July 28, 2016 — Why a Happy, Healthy Retirement Is About More Than Just Money
June 30, 2016 — How Will You Find Meaning, Identity, and Purpose in Retirement?
June 16, 2016 — Variable Annuities: How To Evaluate Whether You Should Keep One
June 2, 2016 — How To Avoid Paying Taxes Twice on the Same Income
May 19, 2016 — What Those Extra Letters on Your Medicare Card Mean
May 5, 2016 — Follow the Rules When Rolling Over Your Employer-Sponsored Retirement Plan
April 21, 2016 — 7 Steps To Follow When You Receive a Pension Buyout Offer
April 7, 2016 — How Obama’s Proposed Tax Changes Could Impact Your IRA
March 10, 2016 — Could You Be Obligated To Pay a Parent’s Nursing Home Bills?
February 25, 2016 — Three Common Pitfalls To Be Aware of When Taking Your RMD
February 11, 2016 — What It Means When Your Account Is “Insured”
January 14, 2016 — Qualified Charitable Distributions Now Permanent
December 31, 2015 — New Retirement Report: You Need To Have a Backup Plan
December 17, 2015 — Is a Reverse Mortgage a Good Idea?
December 3, 2015 — New Law Ends Several Popular Social Security Claiming Strategies
November 19, 2015 — Cost of Healthcare for Retirees: Saving Tax Efficiently Can Have a Big Impact
September 24, 2015 — Understanding Volatility Can Make You a Smarter Investor
September 10, 2015 — Maximize Health Savings Account Tax Benefits
August 24, 2015 — Tax Loss Harvesting: Don't Lose Sight of Your Long-Term Strategy
August 13, 2015 — Failure to Take the RMD from Your IRA Can be Costly
June 18, 2015 — Income Tax Traps: Don't Let Them Trip You Up
May 7, 2015 — Fiduciary vs. Suitability Standard
April 23, 2015 — Estate Planning: What You Should Know About Asset Titling
April 9, 2015 — Balancing Finances Can Make You Feel Happier
March 26, 2015 — Itemizing Deductions Can Make a Big Difference on Your Tax Return
March 12, 2015 — Not All Annuities Are Bad
February 26, 2015 — Will I Run Out of Money in Retirement?
February 12, 2015 — Should You Provide Financial Assistance to Your Adult Children?
January 29, 2015 — Why Even Long-Term Investors Should Hold Quarterly Reviews
January 15, 2015 — Here Are 6 Ways to Make the Shift From Working to Retirement Smoother
December 18, 2014 — How To Legally Transfer After-Tax Money Into a Tax-Free Roth IRA
October 23, 2014 — Don’t Let Procrastination Doom Your Retirement
September 25, 2014 — Reduce Your Death Tax with a Personal Residence Trust
September 11, 2014 — The Surprisingly Simple Key to Successful Wealth Transfers: Good Communication
August 28, 2014 — One Year Before Retirement – Will You Be Ready?
August 14, 2014 — The Tax Advantages of Charitable Remainder Trusts
July 31, 2014 — Employee or Employer: Who Really Wins With Lump-Sum Pension Payouts?
July 17, 2014 — The IRS Has Unprecedented Access to Your Foreign Account Information: Here’s What You Need To Know
July 3, 2014 — Why 70% of Wealth Never Transfers to a Third Generation
June 19, 2014 — Retirement Planning and the Surviving Spouse By Rick Rodgers
June 5, 2014 — Consider Roth IRA’s to Balance Your Retirement Savings Strategy
May 22, 2014 — Maximizing Social Security Benefits
May 8, 2014 — Important New Rules for IRA Rollovers
April 24, 2014 — 8 Investment Decisions That Can Have a Huge Impact on Your Taxes
March 13, 2014 — How to Manage Risk in Your Retirement
February 27, 2014 — Why a Fiduciary Relationship May be Critical to Your Financial Well-being
February 13, 2014 — When Should You Take Social Security?
January 30, 2014 — Having a Written Plan Can Increase Your Odds of Retiring
January 22, 2014 — Retirement FAQs – Answers to Your Rollover Questions
January 1, 2014 — Tips for Reviewing Your Life Insurance Needs
December 11, 2013 — What You Need to Know About RMDs
November 13, 2013 — What’s Your Strategy to Defeat Inflation?
November 6, 2013 — Do You Still Need Your Trust?
October 23, 2013 — More Common Retirement Questions
October 16, 2013 — Spending – The Overlooked Part of the Retirement Equation
October 9, 2013 — Drop Dead Date for Withdrawing Excess Contributions to Your IRA
October 2, 2013 — It’s Time to Start Your Year-End Tax Planning
September 25, 2013 — Three More Questions Retirees Ask
September 4, 2013 — Should Retirees Invest for Yield or Total Return?
August 28, 2013 — Who Insures Your Pension?
August 21, 2013 — Don’t Miss the Qualified IRA Charitable Distribution (QCD) Opportunity to Save on Taxes!
July 24, 2013 — Common Questions About Social Security
July 17, 2013 — What Happens if You Die Without a Will?
June 26, 2013 — Has Planning for Retirement Ever Been More Difficult?
June 19, 2013 — Are We Ready for a National Sales Tax?
June 12, 2013 — What’s Driving the Stock Market and Can It Continue?
May 29, 2013 — Estate Planning Options for Parents of Minor Children
May 8, 2013 — ESOP’s May Help in Business Owners Succession Planning
May 1, 2013 — Teach Your Children Well – Or They Are Likely to Waste Their Inheritance
April 17, 2013 — Can You Eliminate Your State’s Estate or Death Tax?
April 10, 2013 — Teaching Your Children and Grandchildren the Basics of Money
April 3, 2013 — What You Need to Know About IRA Withdrawals
March 20, 2013 — Hardship Withdrawals – What are the Real Costs?
March 13, 2013 — 9 Ways to Beat the Medicare Surtax – Part 3
March 6, 2013 — 9 Ways to Beat the Medicare Surtax – Part 2
February 27, 2013 — 9 Ways to Beat the Medicare Surtax – Part 1
February 13, 2013 — Five Strategies for High Income Earners to Deal with the New Tax Rules
January 30, 2013 — Social Security Basics
January 16, 2013 — Understanding the Impact of Consumer Confidence on the Markets
December 26, 2012 — The Fiscal Cliff and the Alternative Minimum Tax (AMT)
December 19, 2012 — Reducing Taxes on an Inherited IRA
December 12, 2012 — Dealing with Capital Gains in Taxable Accounts
December 5, 2012 — Avoiding the Unpleasant Surprise of a Mutual Fund Capital Gain Distribution
November 28, 2012 — Strategies to Manage the Taxation of Social Security
November 14, 2012 — Stop Saving for Retirement and Start Planning for Financial Independence!
October 31, 2012 — Understand and Plan for the New Medicare Tax
October 10, 2012 — Lump Sum or Annuity – What You Need to Know
October 3, 2012 — It’s Time to Review Your Trust!
September 26, 2012 — Preserving Your Income Stream Through Retirement – Part Three
September 19, 2012 — Preserving Your Income Stream Through Retirement – Part Two
September 12, 2012 — Preserving Your Income Stream Through Retirement – Part One
September 5, 2012 — Are Bonds Still a Good Investment if Interest Rates Go Up?
August 22, 2012 — Should You Buy Pet Insurance?
August 8, 2012 — 8 Principles of Preparing For Retirement – Part 3
August 1, 2012 — 8 Principles of Preparing for Retirement – Part 2
July 25, 2012 — 8 Principles of Preparing for Retirement – Part 1
July 18, 2012 — Passing on Your Home as Part of Your Estate Plan
July 11, 2012 — Medicare 101 – The Basics You Need to Know!
June 27, 2012 — What To Do When a Relative Passes Away
June 20, 2012 — Countdown to Retirement – An Important Checklist To See If You Are Ready
June 13, 2012 — Social Security – Part 2: Minimizing Taxes on Social Security Benefits
June 6, 2012 — What You Need to Know Before Taking Social Security Benefits – Part 1
May 23, 2012 — Tips to Make Sure Your Homeowners Coverage Has Stayed Current
May 9, 2012 — Investor Behavior, Not Market Timing, Matters More in Your Portfolio
April 11, 2012 — Retirement Guidelines for Federal Government Employees
April 4, 2012 — 8 Keys to Help Audit Proof Your Tax Return
March 28, 2012 — Estate Planning Considerations – Spendthrift and IRA Trusts – Part 3 of 3
March 21, 2012 — Estate Planning Considerations – Part 2 of 3
March 7, 2012 — Planning on Leaving your Legacy to your Children? Make sure they can handle it first. Part 1 of 3.
February 29, 2012 — 10 Ways You Can Avoid Penalties on Early IRA Withdrawals
February 22, 2012 — The Dangers of Rolling Your Company Stock into an IRA
February 15, 2012 — It Takes Planning to Reduce Your Medicare Premiums
January 11, 2012 — What You Need to Know About Annuities
December 28, 2011 — Stay in Control of Your Retirement Savings
December 21, 2011 — Do You Hold Title Correctly for Your Real Estate?
December 14, 2011 — Don’t Throw Away Your Legacy!
December 7, 2011 — Thinking of Paying off Your Mortgage Before You Retire?
November 23, 2011 — 5 Things You Should Do to Prepare for Retirement
September 16, 2011 — Compare Your Wealth
Lower Your Audit Profile
August 12, 2011 — What Not to Do Right Now
Maximizing Executive Compensation
July 20, 2011 — When Is Your Beneficiary Not Your Beneficiary?
June 15, 2011 — Planning for Pets
June 2011 Newsletter | Indexed Annuities, Planning for Pets
Annuity Traps (Part 2)
May 20, 2011 — Annuity Traps (Part 1)
Consolidating Employer Retirement Accounts
2025 Lititz Pike, Lancaster, PA 17601
Phone: 717-560-3800, Toll-Free: 888-876-3437