Planning Ahead for Your Retirement

Welcome to today’s CT Buzz. I’m Allison Demurs. Ben Fuchs, founder of Fuchs Financial, is here to talk about when it’s time to get started on financial planning for your retirement years—and it may be sooner than you think. In addition to being a certified financial planner, Ben is also a certified private wealth advisor professional. Ben, many people don’t know where to begin on financial planning for retirement. Are there some initial steps they should take? Yeah, the first step for me is always understanding three key things: what do you have? What is it earning? And what are you spending? Those are the key components, and everything else we can build a plan around. If we figure out that what you’re spending is more than you can generate in retirement, that’s a conversation. If you’re spending less than what you’re generating, maybe you can retire a little earlier. Everything builds off that plan. What if someone feels unsure about their retirement finances and thinks they’ll just make do with what they have? Terrible idea. This is all that I do. Many people wait to come see us because of anxiety, feeling they don’t have enough, or working with an advisor for years who only grows their money without helping with retirement planning. Walking into retirement anxious is not ideal—we recommend a checkup with quantitative analysis to understand where you stand. Don’t worry about it—or not. If I feel like I’ll run out of money at 73 and my grandmother lived to 102, I want to understand that before retiring. What are the numbers? Let’s make them work. What are some of the questions people should consider? There are many. When do I take Social Security? How much am I paying in taxes? Where will my money go after I’m gone? Do I want to give everything to my kids? Will my child’s spouse take my money? These are all considerations to address before retiring. Is the old saying “there’s no time like the present” really true? Yes. There’s always an opportunity to improve and plan. If we know your target retirement age, we can start goal planning and ensure your savings generate the income to live the lifestyle you want. Otherwise, you’re just hoping. Have recent federal tax law changes affected this planning? Yes, especially for seniors or soon-to-be retirees. Changes like the OBBBA and new SALT deductions can affect income and taxes. For example, too much income might prevent taking advantage of these deductions, and it’s important to navigate Medicare and tax rules carefully. You can reach out to Fuchs Financial for a complimentary consultation. They are located in Middletown, West Hartford, Middlebury, and Mystic, or visit their website at taxesandincome.com, or call 860-461-1709. Thank you for joining us for today’s CT Buzz. I’m Allison Demurs. See you next time.