Before implementing any withdrawal strategy, it is essential to have a clear understanding of your retirement expenses. Create a comprehensive budget that includes all your essential and discretionary expenses. This will help you estimate the amount of money you will need to withdraw from your retirement savings each year.

The 4% rule is a widely accepted guideline for retirement withdrawals. According to this rule, you can withdraw 4% of your initial retirement portfolio balance in the first year and adjust subsequent withdrawals for inflation. This strategy aims to provide a steady income stream while preserving the longevity of your savings.

A dynamic withdrawal strategy involves adjusting your annual withdrawals based on market performance and the value of your portfolio. This approach allows you to withdraw a higher percentage during prosperous market periods and reduce withdrawals during downturns. By adapting to market conditions, you can potentially extend the lifespan of your retirement savings.

The bucket strategy involves dividing your retirement savings into different buckets based on time horizons and risk tolerance. The first bucket consists of cash or short-term investments to cover your immediate expenses. The second bucket holds medium-term investments, while the third bucket contains long-term investments with higher growth potential. By strategically withdrawing from each bucket, you can minimize the impact of market volatility on your retirement income.

To ensure a stable income stream throughout retirement, consider incorporating annuities or other guaranteed income sources into your withdrawal strategy. Annuities provide regular payments for a specified period or for life, offering protection against market fluctuations and longevity risk.

Retirement planning is not a one-time task. It is crucial to regularly review your withdrawal strategy and make adjustments as needed. Factors such as changes in expenses, market conditions, and life events should be considered when modifying your approach. Consulting with a financial advisor can provide valuable insights and guidance in this regard.

Developing effective withdrawal strategies is essential for making your retirement savings last. By understanding your expenses, following established guidelines, and considering dynamic approaches, you can optimize your withdrawals and maintain financial stability throughout your retirement years. Remember to regularly review and adjust your strategy to adapt to changing circumstances. With careful planning and prudent decision-making, you can enjoy a financially secure and fulfilling retirement.

About Matt

Matt Ward is a financial advisor and the president of New Century Investments, an independent investment advisory firm serving business owners, pre-retirees, and retirees in the Dallas-Fort Worth area and beyond. Matt is passionate about integrating investing, planning, and tax management into a holistic approach. Matt’s breadth of knowledge and experience in both taxes and investment management sets him apart, giving him the ability to design, advise on, and manage business strategies, tax efficiency, and retirement planning. He is known for his care and attention to detail and works hard to develop personal relationships with each of his clients so they can benefit from his customized service and guidance. He loves walking with his clients through their financial journey, supporting them and celebrating with them as they reach their goals.

Matt’s Corner

The post Effective Withdrawal Strategies to Make Your Money Last appeared first on New Century Investments.

Are you in your 50s and starting to think about retirement? It’s never too early to start planning, and there are a few key money moves you can make now to set yourself up for a comfortable retirement.

Here are 5 of the most important money moves you should make.

1. Review your retirement plan

The peace of mind that comes with a retirement plan is unmatched. Knowing that you have a plan in place and that your money is working for you is a huge relief. You can dream about what you want to do in retirement and not worry about how you’re going to pay for it. Working with a financial planner to create a retirement plan is one of the best decisions you can make. They will help you figure out how much money you need to save and how to invest it so you can grow your wealth. They will also help you come up with a strategy for drawing down your savings in retirement so you don’t run out of money.

If you’re nearing retirement, it’s not too late to create a plan. It may take some extra effort on your part, but it’s well worth it. Having a solid retirement plan gives you the confidence to enjoy your golden years without worrying about money.

2.  Boost your savings for retirement

It’s never too late to start saving for retirement. If you can start boosting your savings now, you’ll be in a much better position when it comes time to retire. One key way to save more for retirement is to make use of catch-up contributions, which the IRS offers for those 50 and older. This allows people in that age group to save an extra $6,500 per year in 401K’s, 403B’s, and other accounts (2022).

This catch-up contribution can be a huge help for those nearing retirement age, as it can provide them with much-needed additional savings. In addition to the extra $6,500 contribution limit, those 50 and older can also take advantage of other tax breaks that can help reduce their taxable income.

All of these strategies can add up to significant tax savings for those approaching retirement. By using catch-up contributions and other tax breaks, you can maximize your retirement savings and ensure that you have enough money to last throughout your golden years.

3. Review your debt situation

Debt can be a major obstacle when it comes to saving for retirement. If you’re carrying a lot of debt, now is the time to do something about it. Work on paying off your debts as quickly as possible so you can free up more money to save for retirement.

One way to get a handle on your debt is to create a budget. Figure out where your money is going each month and see where you can cut back. Do you have any unnecessary expenses that you can eliminate? Once you have a good understanding of your monthly expenses, you can start working on a plan to pay off your debts.

If you’re not sure where to start, there are plenty of resources available to help you get out of debt. There are numerous books, websites, and articles that offer advice on getting out of debt. You can also find helpful tips from financial advisors or credit counseling services.

The most important thing is to take action and start working towards becoming debt-free. It may seem like a daunting task, but it’s definitely possible. With some determination and hard work, you can get out of debt and start saving for retirement.

4. Invest in yourself

One of the best things you can do for your retirement is invest in yourself. Take courses and learn new skills that you have always had a passion for. For example,  if you’ve always wanted to learn how to cook, sign up for cooking classes. This will not only give you a new hobby to enjoy in retirement, but it can also help you stay active and social.

Investing in yourself can also mean taking care of your health. Retirement is the perfect time to focus on your fitness and well-being. Start working out, eating healthy, and quitting any unhealthy habits that you may have. Doing this will not only improve your quality of life, but it will also help you stay independent and active in retirement.

Investing in yourself will not only make retirement more enjoyable, but it can also help you stay active and healthy.

5. Review your estate plan

Making a will and estate plan is one of the most important money moves you can make in your 50s. This is especially true if you have children or other dependents who will need to be taken care of after you’re gone.

A well-thought-out estate plan can ensure that your loved ones are taken care of and that your assets are distributed according to your wishes. It can also help reduce the tax burden on your estate.

If you don’t have an estate plan, now is the time to start putting one together. Talk to an attorney who specializes in estate planning and work out a plan that fits your needs.

Your estate plan is important, especially if you have children or other loved ones who will inherit your assets when you die. Make sure your will and other estate planning documents are up-to-date, and talk to your trusted accountant, financial advisor, or your estate planning lawyer if you have any questions. Reviewing your estate plan is a crucial money move to make in your 50s in order to set yourself up for a successful retirement.

Talk to a financial planner

If you want to make sure you’re on track for retirement, it’s a good idea to talk to a financial planner. If you would like to meet with us, schedule now!

Matt Ward, CFP^®

Schedule a call here

Matt.Ward@newcenturyinvestments.com

817-238-6300

The post 5 money moves to make in your 50s to set yourself up for retirement appeared first on New Century Investments.

Think you can’t boost your income in retirement? You may be surprised at the options available to you! This post will explore ways to increase your income so you can comfortably enjoy your retirement years. Whether you’re retired or about to retire, read on for tips on how to make the most of your retirement savings. So what are you waiting for? Start reading now and see how you can start boosting your income today!

1) Review your retirement accounts and make changes to optimize growth

If you’re like most people, you have a 401(k) or other retirement account that you contribute to during your working years. But once you retire, it’s important to take a close look at how your account is performing and make changes if necessary. After all, your retirement income depends on the success of your investment portfolio.

One way to optimize growth in your retirement account is to rebalance your portfolio on a regular basis. This means ensuring that your investment mix—the percentage of stocks, bonds, and cash in your account—is aligned with your risk tolerance and goals.

If you’re not sure how to rebalance your portfolio, talk to a financial advisor. They can help you make the right decisions for your unique situation.

2) Downsize your living situation for a lower cost of living

One way to increase your income in retirement is to downsize your living situation. If you own a home, consider selling it and moving into a smaller home or an apartment. This will free up extra cash that you can use to supplement your income. You may also be able to save money on things like groceries and utilities by downsizing your home.

Rent out a room in your home

If you have an extra room in your home, consider renting it out. This is a great way to bring in extra income without having to make any major changes to your lifestyle. You can rent out a room on a short-term basis, such as for travelers who are looking for a place to stay, or on a long-term basis.

3) Sell unused possessions for some extra cash

If you’re like most people, you’ve probably accumulated a lot of stuff over the years. And while it may hold sentimental value, it’s not doing anything to help your bank balance. So why not take a trip down memory lane and have a good old clear out? You could make some serious money by selling unwanted items on sites like eBay or Craigslist.

Not only will you declutter your home, but you’ll also have a little extra cash to play with. So it’s a win-win! Just be sure to take some good quality photos and write descriptive listings, so potential buyers know exactly what they’re getting. Trust us, it’ll be worth it in the end.

4) Invest in dividend-paying stocks and ETFs for regular income payments

Dividend-paying stocks can provide you with a regular income stream to help supplement your other retirement income sources. When considering dividend stocks, look for companies with a history of paying and increasing their dividends, as well as those that are financially healthy and have sustainable business models.

When it comes to generating retirement income, many people think of Social Security and pensions as the primary sources. However, there are other options that can provide you with regular payments to help cover your living expenses. One such option is investing in dividend-paying stocks.

Dividend stocks are shares of a company that pay out periodic cash dividends to shareholders. These dividends can provide you with a source of regular income that can help supplement your other retirement income sources.

For added peace of mind, consider investing in dividend ETFs, which offer diversified exposure to a basket of dividend-paying stocks. This can help mitigate the risk associated with investing in a single stock.

If you’re looking for an income-generating investment to add to your retirement portfolio, consider dividend stocks and dividend ETFs. Just be sure to do your research and only invest in companies that have a history of financial strength and stability.

5) Take on a part-time job to supplement your retirement income

Do you have a hobby or skill that you could turn into a part-time job? If so, this is a great way to bring in some extra income during retirement. You can work as little or as much as you want, and you’ll get to enjoy doing something you love while making some extra money. Whether you start your own business or find a part-time gig through a friend or family member, put your skills to work and start earning some extra cash.

If you’re not sure where to start, there are plenty of resources available to help you find the perfect part-time job. Check out websites like Indeed.com or LinkedIn.com, or ask your friends and family if they know of any openings. Once you find a few possibilities, reach out and see if you can get started.

6) Consider using a reverse mortgage to access home equity

If you’re retired and own your home, you may be able to use a reverse mortgage to access the equity in your home. A reverse mortgage is a loan that allows homeowners to borrow money against the value of their home. There are plenty of cons with taking out a reverse mortgage, but a pro is the loan does not have to be repaid until the borrower no longer lives in the home. This can be an attractive option for retirees who need extra income but don’t want to sell their home. If you’re considering a reverse mortgage, make sure you understand all the pros and cons before making a decision.

Conclusion

Reviewing your retirement accounts and making changes to optimize growth is a critical step in ensuring you have enough money saved up to live comfortably during your golden years. Downsizing your living situation and selling unused possessions are also great ways to supplement your income and make the most of your savings. If you’re looking for more ideas, investing in dividend-paying stocks can provide a regular stream of income payments, and taking on a part-time job can help stretch your retirement dollars even further. Finally, if you’re concerned about having enough money saved up, consider using a reverse mortgage to access home equity – this unique loan product can help seniors tap into their largest asset while still allowing them to retain ownership of their home. What steps are you going to take today to improve your financial security in retirement?

Take the Next Step

The first step is to schedule a complimentary consultation with one of our experienced CPA or CFP® professionals. We’ll review your current situation, answer any questions you have, and develop a personalized plan to help you achieve your financial goals. Contact us today to get started! Schedule free consultation

About Matt 

Matt Ward is a financial advisor and the president of New Century Investments, an independent investment advisory firm serving business owners, pre-retirees, and retirees in the Dallas-Fort Worth area and beyond. Matt is passionate about integrating investing, planning, and tax management into a holistic approach. Matt’s breadth of knowledge and experience in both taxes and investment management sets him apart, giving him the ability to design, advise on, and manage business strategies, tax efficiency, and retirement planning. He is known for his care and attention to detail and works hard to develop personal relationships with each of his clients so they can benefit from his customized service and guidance. He loves walking with his clients through their financial journey, supporting them and celebrating with them as they reach their goals.

Matt graduated from Texas Tech University with a bachelor’s degree and is a CERTIFIED FINANCIAL PLANNER ™ and Chartered Retirement Planning Counselor℠ professional. When he’s not working, you can find Matt hiking, playing the guitar, and spending time with his family. To learn more about Matt, connect with him today.

The post Boost Your Income In Retirement With These 6 Tips appeared first on New Century Investments.

In financial terms, cash flow is the rate at which money comes into and goes out of your bank account. It also can mean after-tax income.  This article assumes that cash flow is after taxes and expenses. The more cash flow you have, the more likely it is that you will be able to save enough and live comfortably during retirement. One metric we use, we call the cash-flow-to-spending ratio. Cash-flow-to-spending can be measured as a ratio to show how much of your current income is being spent each month. This metric provides insight as to how much you can save each month, and how long it will take for you to reach your goal.

For example, if you have $4,000 in monthly expenses and $11,000 in monthly income after-taxes, your cash-flow-to-spending ratio would be 2.75. This is a healthy cash-flow-to-spending ratio and shows that you are in good financial shape. Conversely, a low cash flow ratio means you are spending more than you might be able to afford. This can put you at risk of financial trouble.

Strategies to accelerate your retirement:

Here are strategies to help you reach retirement sooner rather than later!

The goal with these retirement acceleration strategies is to increase your monthly cash flow. This will help you build a stronger financial foundation, repay debt faster and save more money for retirement. Here are a few strategies you can use to increase your cash flow.

1- Review expenses and make changes where necessary

The first step is to take a look at your current spending. Are there any areas where you can cut back or make changes? Even small changes can make a big difference in your monthly cash flow. For example, can you switch to a cheaper cell provider? Can you cut back on your grocery bill by shopping for less expensive items or buying more off-season produce? After looking at your current spending, the next step is to figure out what lifestyle changes you are willing to make, and what can be made. Are any expenses out of control and need to stop immediately? What expenses can be scaled back? What expenses can be avoided or cut back on?

This is where a budgeting app with the option to track your spending and see what you can adjust is really helpful. You’ll have more data to help you determine what changes are possible and what will save you the most money in the short term.

2- Boost your retirement savings contributions

One way to help accelerate your retirement is by increasing your retirement savings contributions. This will allow you to have more money saved for when you do retire. Plus, if your employer offers a matching contribution, be sure to take advantage of that! It’s free money that can help boost your retirement savings even more; and you may be able to reduce your taxable income by contributing to a Traditional IRA or 401(k). So not only will you be building a bigger nest egg, but you’ll also be saving on taxes now.

Another important pointer, make sure to keep an eye on your investments. Monitor how your portfolio is performing and make changes as needed. Diversifying your portfolio can help reduce the risk of losing money if one of your investments underperforms.

3- Boost your income with side hustles or a part-time

If you want to make more money and retire faster, you can start a part-time or side-hustle business. Starting a side hustle or part-time business can be a great way to save for retirement. Just make sure you pick the right type of business. Then, set some realistic goals. These two things can help you bring in some extra money that can go towards retirement savings.

You could start a small business, like a consulting business or a home-based business.

No matter what you choose, make sure it is something you are passionate about. This will help you stay motivated and stick with it when things get tough. Make realistic goals and track your progress.

4- Consider downsizing your home

One way to accelerate retirement is to downsize your home. This can provide you with more income for retirement. Downsizing can also help you simplify your life and reduce your expenses. This will allow you to save more money and prepare for retirement.

If you’re thinking about downsizing your home, there are a few things to keep in mind. First, consider the cost of selling your home and moving. This can be a significant expense, so be sure to factor it into your plans. Second, think about where you want to live. Do you want to downsize to a smaller home in the same area, or move to a new location? This is an important decision that will affect your quality of life in retirement. There are many other considerations, and New Century Investments can help you decide.

5- Create a budget

When it comes to retirement, having a budget is key. Not only will it help you keep track of your spending and saving, but it can also help you increase your income for retirement.

How?

By creating a budget, you can figure out exactly how much money you need to save each month in order to have the retirement fund you desire. And by knowing this, you can then start looking for ways to increase your income – whether through earning promotions at work, picking up a side hustle or earning extra income through investments. You can use our app to track expenses, or you may choose to use an excel file.

Simply put, budgeting for retirement is one of the best ways to ensure that you have the funds you need to live comfortably once you leave the workforce. So if you’re looking to retire sooner rather than later, start creating a budget today!

Conclusion

There are numerous strategies you can use to accelerate your retirement. These strategies will help you save more money and live more comfortably during retirement. Now that you understand the cash flow and the different retirement acceleration strategies, it’s time for you to start benefiting from them.

Take the Next Step

If you’re interested in learning more about how to accelerate your retirement, call us at New Century Investments. We have experienced CPA and CFP® professionals who can provide you with the holistic financial planning services you need. We offer tax preparation, investment management, tax planning, financial planning, retirement planning, estate planning, tax planning for entrepreneurs, and more. Call us today 817-238-6300 to learn more about how we can help you achieve your financial goals.

Matt Ward, CFP®

Schedule appointment!

Email: Matt.Ward@newcenturyinvestments.com

Phone: 817-238-6300

The post 5 Cash Flow Strategies for Accelerating Your Retirement appeared first on New Century Investments.

Selecting a trusted financial partner to work with is one of the most important decisions you can make for your financial future. Whatever you hope to achieve, it’s our mission to simplify the complexities of your financial life so you can focus on what matters most.

So if these questions resonate with you…

• Do you wonder if you are truly prepared for retirement?
• Do you want to make sure you aren’t overpaying in taxes?
• Are you ready to stress less and enjoy life more?

…we are here with customized solutions for all your financial concerns.

We’re Here to Help Virtually

We offer a no-cost 30-minute consultation to help answer your questions, learn more about you, the people in your life, and what you want to achieve.

In our free introductory session, we’ll discuss:

• The things that worry you about your financial future
• What your vision of retirement looks like
• Solutions to your specific concerns
• How our process and services can bring value to your financial life

Get Started Now

Schedule your free 45-minute introductory phone call today to take the first step toward the future you dream about.

SCHEDULE NOW

You may also call 817-238-6300 or email Matt.Ward@NewCenturyInvestments.com​.

About Matt

Matt Ward is a financial advisor and the president of New Century Investments, an independent investment advisory firm serving business owners, pre-retirees, and retirees in the Dallas-Fort Worth area and beyond. Matt is passionate about integrating investing, planning, and tax management into a holistic approach. Matt’s breadth of knowledge and experience in both taxes and investment management sets him apart, giving him the ability to design, advise on, and manage business strategies, tax efficiency, and retirement planning. He is known for his care and attention to detail and works hard to develop personal relationships with each of his clients so they can benefit from his customized service and guidance. He loves walking with his clients through their financial journey, supporting them and celebrating with them as they reach their goals.

Matt graduated from Texas Tech University with a bachelor’s degree and is a certified financial planner™ and chartered retirement planning counselor℠ professional. When he’s not working, you can find Matt hiking, playing the guitar, and spending time with his family. To learn more about Matt, connect with him on LinkedIn!

Matt’s Corner

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#1. Plan for health care costs.
Healthcare costs are exponentially increasing. Without proper budgeting or planning in this area, a retiree may be overexposed.

#2. Expect to live longer.
Life expectancy continues to go up. So longevity risk and outliving your money is becoming a concern for more people. Make sure to position your investment portfolio for enough income and growth so you don’t outlive your money.

#3. Be prepared for inflation.
Every 25 years, on average, inflation doubles the cost of living. Make sure to keep in mind that outpacing inflation is just as important as keeping money “safe.” Don’t fear growth to your portfolio more than losing purchasing power to high inflation.

#4. Position investments for growth and income.
Without any growth in a portfolio, inflation and the spending risk increases. A diversified portfolio of growth, income, and stability will help keep your principle safe, while allowing your money to continue growing reasonably.

#5. Don’t withdraw too much from accounts.
Be careful and consider the safe withdrawal rate of 3-5%. William Bengen is the financial professional who studied the 4% withdrawal rate and determined that over each 30 year period, 98% of the time a retiree will never run out of money, and less than 10% of the time will a retiree end with less principle than they started with.

Call us today! We can help ensure that your retirement portfolio is positioned prudently for the uncertainty in the election ahead, but also being mindful that we should aim to outpace inflation and add some growth.

Call today! 817-238-0100

The post 5 Ways to Protect Your Retirement Income appeared first on New Century Investments.

photo taken from Kiplinger

Rule No. 1: Wealth is not just a dollar amount.

Rule No. 2: A penny saved isn’t a penny earned — It’s more.

Rule No. 3: He who hesitates cashes in.

Rule No 4: Piggy bank your coins.

Give us a call, book an appointment online, or email us with any questions you have.

817-238-6300

Matt.Ward@NewCenturyInvestments.com

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