By Ted Stricker, CFP®
Creating a retirement income plan can be a rewarding and enlightening endeavor for both the advisor and the client. Oftentimes doing so can reveal illuminating insights as to how the “numbers work” and whether someone’s aspirations and objectives can be met with a relatively good probability of success.
But the planning process doesn’t end with the final presentation and a handshake. The last and probably most important step in the financial planning process must be undertaken on a regular basis: Monitor the plan.
Why? Life happens.
Change is a constant in today’s world. New tax laws appear, income and benefits change, financial markets shift, and with each passing year, we’re all another step closer to a life event.
This is why our firm emphasizes the importance of regular reviews to determine whether adjustments or new strategies might be needed to achieve client objectives.
Here are some of the key points check in your own plan this year:
Changes in Retirement Income Needs
Your intended lifestyle in retirement may have changed since the last plan review, requiring a reassessment of both discretionary and non-discretionary expenses. If expenses increase significantly over time, the success of the plan may be compromised.
Increases in Social Security Income Benefits
Did you know that your benefit could increase with each new year of income? Your benefit also increases each year due to cost-of-living adjustments (COLA) made by the Social Security Administration. These adjustments could make a difference whether you retire a little earlier or whether meeting your retirement income goals could be a little easier.
Examine Withdrawal Strategies for Tax Efficiency
Plan and reexamine how you’ll withdraw from retirement resources to meet lifestyle expenses and other goals, such as charitable intentions. Look for tax-efficiencies so you don’t pay more tax than necessary on these withdrawals.
Be Mindful of Healthcare Costs
Look for changes to healthcare costs and ways to mitigate them. Healthcare expenses continue to be a significant concern for retirees. Reevaluate your Medicare plan, deductibles, Medicare Supplement programs, and whether a change in coverage could save money. Consider what long-term care strategies or coverage might be beneficial for you and your spouse in the future.
Look for Changes in the 2025 Tax Law and Your Income
The “Big Beautiful Tax Law” is winding its way through Congress this year. Be aware of changes that could affect your retirement and work with your tax advisor to implement new tax-saving strategies. Understand the implications of Social Security, pension and required minimum distributions (RMDs) on your taxable income this year.
Review Other Risk Management Needs
Gather all your life insurance and disability policy statements to determine how these are meeting your risk management objectives (or not!). Review home and auto insurance coverage to see if deductible or premiums can be adjusted safely. Consider umbrella liability coverage to shield your hard-earned wealth from liability lawsuits.
Estate and Legacy Planning
Coordinate your retirement income planning with your legacy and philanthropic objectives, as well as your overall estate plan. Be sure your Will, Trust, and other documents continue to reflect your unique values and bequests and how you wish your legacy to unfold in the future.
Review Investments for Strategic Adjustments and Opportunities
Market volatility and changing tolerance for risk may require an adjustment to how your investments are allocated. Consider whether further diversification or changes with your investments may better suit your long-term objectives, short-term withdrawal needs, and tolerance for the rapid changes to the markets and economic policy.
In summary, reviewing all these key markers could identify gaps in your retirement income plan or yield some insights that call for adjustments or strategy changes. Doing so with experienced and qualified legal, tax, and financial planning professionals would be an even better idea.
If You Have Questions, Let’s Have a Conversation
Retirement planning is a core service we offer at Bernath + Rosenberg, and we’re here to help!
Our experienced team of Certified Public Accountants and CERTIFIED FINANCIAL PLANNER® professionals stays current with the latest in tax laws and planning strategies to help you pursue a rewarding and comfortable retirement, according to your unique and special objectives. By coordinating your retirement planning and long-term goals, we can assist you in avoiding unexpected surprises late in life that could disrupt your retirement or legacy objectives.
To get started and make the most of the wealth you’ve accumulated, schedule a meeting by calling (212) 221-1140 or email tstricker@brwealth.com.
About Ted
Ted Stricker is a partner and financial advisor at Bernath + Rosenberg, a full-service accounting, tax, and wealth management firm with offices in Monsey, NY, Lakewood, NJ, Cedarhurst, NY, and Miami Beach, FL. The firm demonstrates a personalized approach to custom-tailored solutions and an unwavering commitment to client service. With over 26 years of experience in the financial services industry, Ted manages the firm’s wealth management team, and specializes in designing financial plans for business owners and affluent families. Since joining the team in 2015, he provides practical and sound advice, combining innovative approaches and solutions that reflect clients’ personality, lifestyle, and goals.
Professionals associated with Bernath & Rosenberg P.C. may be either (1) registered representatives with, and securities and advisory services offered through LPL Financial, Member FINRA/SIPC, a registered investment advisor; or (2) solely tax professionals of Bernath & Rosenberg P.C., and not affiliated with LPL Financial. Tax/accounting/CPA-related services offered through Bernath & Rosenberg P.C. is a separate legal entity and not affiliated with LPL Financial. LPL Financial does not offer tax advice or tax/accounting/CPA-related services.
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