We’ve moved to a 401(k) world in the private sector and households will need help designing a retirement income plan that will work for them. They may choose to go it alone, or use a financial professional that sells a product, or an investment adviser who charges 1% or more to manage their assets.
Mavericus is Latin for maverick as the practice is built very differently from nearly all other advisory practices. It is built upon the concept that there are those want access to a low-cost service that provides “advice” only for retirees.
The good news for retirees is major advances in financial technology (aka FINTECH) in recent years allow a sole practitioner operating as a Registered Investment Adviser and acting as a fiduciary to provide excellent ongoing advice on how to manage retirement income and plan for healthcare expenses throughout retirement. Further, this advice can be delivered in a virtual setting, an option far fewer would have felt comfortable with prior to the COVID-19 pandemic. Jim’s practice is definitely not for everyone, but if you are interested, please read the Ten Core Beliefs his Registered Investment Advisory firm has been constructed upon.
- High fees, such as a 1% or more annual asset under management charge can significantly reduce annual income and inheritance amounts.
- The best retirement income plans optimize Social Security and the use of low-cost index funds while minimizing fees and taxes.
- A solid base of guaranteed lifetime income (usually through Social Security alone) to cover essential expenses allows retirees to invest more aggressively than they otherwise would, while providing peace of mind during periods of stock market volatility.
- If additional guaranteed lifetime income is needed, immediate or deferred income annuities without traditional commissions built in can typically provide higher amounts of income to retirees.
- It may be best to leave some or all of a retiree’s assets in the individual’s old 401(k) plan.
- Individuals and couples with higher amounts of education and wealth need to plan for extended longevity beyond average lifespans.
- A deficient retirement income plan can create financial and emotional burdens for adult children.
- Spending in retirement is not static and a retirement income plan needs to be flexible enough to adjust.
- Taxes and Medicare surcharges can be minimized through effective planning, including the use of Roth conversions, HSA optimization, delaying Social Security, and a careful withdrawal strategy that fills the lower thresholds of tax brackets.
- Artificial Intelligence (AI) is coming to the world of financial planning and Jim’s practice will embrace these enhancements to improve client outcomes.
