Cortburg Speaks Retirement

5 Financial Wellness Myths Surrounding Near Retirees

• Miguel Gonzalez, MBA, AIF®, CPFA®, CRC® • Season 2024 • Episode 171

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Cortburg Speaks Retirement - episode #171: 5 Financial Wellness Myths Surrounding Near Retirees / Investment in Stock Market, Financial Planning, Retirement Planning, Money Management
In this audio podcast episode, Miguel discusses financial wellness myths for retirees and those nearing retirement. The internet is full of retirement information but not all of it is accurate. To avoid any surprises, Miguel covers 5 financial myths he wants to bust surrounding near-retirees.

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About Cortburg Retirement Advisors, Inc. 

Cortburg Retirement Advisors is a full-service, boutique financial planning firm - helping guide clients through turbulent and calm economies. Their goal is to help grow, protect, and preserve their assets from their first job through retirement. Cortburg’s “all in one house” capabilities mean that their experienced team can help with all financial needs - wealth management, estate and tax planning, group retirement, employee benefits, insurance, and retirement planning.    

Welcome to Cortburg Speaks Retirement Podcast 
with Miguel Gonzalez, MBA, AIF®, CPFA®, CRC®

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INTRODUCTION

Welcome to Cortburg Speaks Retirement

An audio podcast about investing in the stock market, financial planning, money management and retirement planning.  Each Wednesday, we help investors at all stages of life learn how to potentially grow and preserve their money from first job through retirement.

Now here is your host, Miguel Gonzalez.

 

HOST

Good morning and welcome to the CORTBURG SPEAKS RETIREMENT audio podcast.   

On this week’s audio podcast, I share 5 financial wellness myths you want to avoid.

When people think of retirement, they often have an image formulated in their minds of what it will be like. The thing about it, the reality might not be what they expected. The internet is full of retirement information; however, not all of it is accurate. Some of it is pure myth. To avoid any surprises, here are five financial wellness myths we want to bust surrounding near-retirees.

 

Myth #1: No more taxes

You may think you are no longer subject to taxes once you retire. That couldn't be further from the truth. Some of these retirement taxes include:

 

·         Social Security gets taxed based on your income and primarily affects higher-net-worth individuals.

·         Required Minimum Distributions (RMDs) are taxed if you are age 73.

·         Capital Gains tax is required on investment profits if your income is $44,626 or more.

·         Gift taxes are required for gifts exceeding $17,000 per person, $34,000 per person, per married couple.

·         Lifetime exclusion gift taxes become a factor if your gifts exceed $12.92 million per individual.

 

 

Myth #2: Social Security will cover your expenses

Some retirees believe Social Security benefits will be sufficient to cover their retirement expenses, although this may be a risky strategy and lead to long-term financial challenges. Over time, housing, healthcare, food, entertainment, and other retirement expenses can experience a decrease in purchasing power while the cost of living continues to rise. This can be difficult if you try to maintain a specific lifestyle on a fixed income like Social Security.

 

Myth #3: Nobody works after they retire

What are you going to do after you stop working to keep yourself busy? Some plan to keep working. According to the U.S. Bureau of Labor Statistics, among adults ages 65 to 74, workforce participation is expected to grow to as much as 30.7% by 2031. The 75-and-older crowd is expected to be around 11.1%. Each of these retirees will have their own reason for continuing to work. Some may depend on an income to live comfortably, others need it to survive, and some are just working to stay busy and give themselves something to do and keep their minds sharp. As the planning director at Creative Financial Concepts in New York put it, "Boredom is a huge problem." Having a job to do every day gives people a reason to get up in the morning. Many retirees miss that.

 

Myth #4: It is too risky to invest in the stock market

Some retirees feel that investing in the stock market may be too risky. However, there are investment strategies for retirees with a lower risk tolerance. One way is through diversification, for example, purchasing treasury bills, bonds, municipal bonds, annuities, mutual funds, and life insurance. A financial professional can help you manage your portfolio so you are diversified and can work to make the market work for you.

 

 

Myth #5: Retirement planning is easy, and I can do it myself

Retirement planning is not easy and as many of you have learned over the years, there are many moving parts that are frequently evolving with a constantly changing world, from tax rules to interest rates, cost of living, to your short and long-term goals. Getting the help you need from a financial professional can be beneficial in so many ways.

 


 


Schedule that appointment with your financial professional today!  We are here to help.  

Make sure to visit our website, www.CortburgRetirement.com. Our site is filled with educational videos, eBooks, publications, and financial calculators designed to help you learn more about your finances.  As you search our site, send us a note regarding any questions you may have about any particular investment concepts or products. We will get back to you quickly with a thoughtful answer.

This is Miguel Gonzalez, Certified Retirement Counselor (CRC) and Managing Partner, with Cortburg Retirement Advisors signing off for this week’s educational podcast.  

 

DISCLOSURES  

Opinions expressed are subject to change without notice and are not intended as investment advice or a solicitation for the purchase or sale of any security. Please consult your financial professional before making any investment decision. 

All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.

This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.

CRC conferred by The International Foundation for Retirement Education.

Securities offered through LPL Financial. Member FINRA/SIPC. Investment advice offered through Private Advisor Group, LLC, a registered investment advisor.  

Private Advisor Group, LLC and Cortburg Retirement Advisors, Inc. are separate entities from LPL Financial.

Investing involves risk including possible loss of principal.

·         The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial professional prior to investing.

·         Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments.

·         There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

·         This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.

·         All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.

·         This article was prepared by LPL Marketing Solutions

·         Sources:

o   1 in 6 retirees are considering a return to the workforce (cnbc.com)

o   2022-2023 Long-Term Capital Gains Tax Rates | Bankrate

o   KA-02471 · FAQ | SSA

o   Gift Tax: How It Works, Who Pays and Rates - NerdWallet

o   9 Reasons People in "Blue Zones" Live Longer, Healthier Lives | Houston Methodist On Health

o   6 Low-Risk Investments With High Returns for Retirees | Investing | U.S. News (usnews.com)

o   Taxes in Retirement: How to Reduce Taxes on Your Withdrawals (ml.com)

Retirement Reality Check: Debunking the Top 8 Retirement Myths - IFW (the-ifw.com) 

Contributor

Miguel Gonzalez, MBA, AIF®, CPFA®, PPC®, CRC®

Host