Retirement Resilience
Many Americans have decided that the best retirement plan is to not retire, or at least delay retirement as long as possible. By working more, they increase the odds of not outliving their retirement savings.
According to the Employee Benefit Research Institute (EBRI), over one-third of workers expect to work indefinitely or retire at 70 or later. However, in practice, those plans often change. In 2023, two-thirds of workers who retired earlier than planned did so involuntarily. Instead, their retirement resulted from a medical hardship or changes at their company.
The benefits of working longer are clear. Continuing to work means a steady income, additional time for savings to grow, and greater Social Security benefits. While working longer can be a critical part of a sound retirement plan, it shouldn’t be the only plan.
Unexpected early retirement can significantly alter one’s financial landscape. This unpredictability underscores the importance of having a diversified retirement strategy. Besides working longer, individuals should consider various other measures. These strategies include maximizing contributions to retirement accounts and ensuring the proper asset allocation for their stage of life and risk appetite.
Additionally, it’s crucial to plan for rising care costs, which can be a major expense in retirement. Regularly revisiting and adjusting your retirement plan to align with changing life circumstances and market conditions is essential.
At First Fiduciary, we’ve helped many clients prepare robust retirement strategies. Our approach is not “one size fits all.” Instead, we take the time to listen and gain a complete understanding of our client’s situation and goals, then assist in tailoring a comprehensive safety net that may include extending working years, if desired. We explore tax-efficient withdrawal strategies, analyze potential retirement income streams, and adjust investment plans as clients near retirement.
Planning for retirement is not just about hitting a certain age; it's about being financially, emotionally, and physically prepared for a new phase of life. The earlier and more holistically you plan, the better prepared you'll be for whatever retirement throws your way. With First Fiduciary at your side, you can aim for a retirement that is not only financially secure but also fulfilling and stress-free.
Articles We Enjoyed:
Heads or Tails
A coinflip is a 50/50 proposition, or is it? After 48 volunteers flipped 350,707 coins, a researcher from the University of Amsterdam says the odds are not quite 50/50.
Ice Cream
Scientists were befuddled by the surprising discovery that eating ice cream appears to reduce a person’s risk of developing diabetes. As The Atlantic details, that led to a years-long attempt by scientists to prove they were wrong. After many experiments, eating ice cream still showed health benefits. The takeaway: don’t skip dessert.
Matthew Perry
A touching tribute to Friends star Matthew Perry, who recently passed away.
Maize Mazes
A designer walks through the process he employs to design and build elaborate corn mazes in the burgeoning field of “agritainment,” which is the idea of bringing people to the farm and making it fun.
Natural GLP-1
Want some of the benefits of the weight loss drug Ozempic without doctor visits or weekly shots? Add some barley to your diet, say doctors from the University of Arizona.
Birth Rate
Millennials aren’t having children. The Washington Post tries to answer why.
Peak TV
Daring and groundbreaking television have been replaced by more conventional content as streaming giants gain power, says TV critic Peter Biskind in his latest book, Pandora’s Box.
Notable Read:
The Animal Family
by Randall Jarell
This deceptively simple tale belies a profound exploration of love, loss, and the power of family, whatever that might look like. Despite being written for children, the story's poignant prose and rich symbolism resonate deeply with adults, making it a timeless classic that deserves a place on every bookshelf. Reading it to my children (ages 6 and 8) was a joy. – AG
More Than a Trusted Advisor
Recently, we reviewed a client’s long-term charitable giving plans. Our client is grateful for the good fortune in her life and is committed to giving back. Through thoughtful planning, the client will be able to use her qualified retirement account as the source of future giving. The favorable tax treatment she receives once she turns 70 1/2 will enhance her giving.
Let us know if you face any changing situations. We would be happy to help you strategize the best way to handle them.
The data contained within this newsletter is for informational purposes only. The information contained herein should not be considered investment, tax or legal advice.
This newsletter contains links to external third party websites that are not affiliated with First Fiduciary Investment Counsel. FFIC does not control or direct the content of the information contained on these websites. Information contained on the third-party website is relevant on the date the newsletter was published but may be changed or revised by the third parties without the knowledge of and/or notice to FFIC.
Statistics and other information have been compiled from various sources. First Fiduciary Investment Counsel believes the facts and information to be accurate and credible but makes no guarantee to the complete accuracy of this information.
Past performance does not guarantee future results. The mention of securities or types of securities in this newsletter should not be considered as an offer to sell or a solicitation to purchase or sell any securities mentioned. Neither First Fiduciary nor the authors hold positions in any of the stocks mentioned unless otherwise stated.
First Fiduciary Investment Counsel, Inc. is a registered investment adviser with the Securities and Exchange Commission. A more detailed description of the company, its management and practices is contained in its firm brochure document, Form ADV, Part 2. A copy of this form may be received by contacting the company at: 6100 Oak Tree Blvd., Suite 185, Cleveland, OH 44131; Phone: 216.643.9100; Email: ffic@firstfiduciary.com.