As the financial landscape continues to shift, from changing tax laws and evolving retirement plans to the growing importance of sustainable investing, it is more important than ever to take proactive steps toward financial security. Whether you are just starting to build your wealth, preparing for retirement, or somewhere in between, these five actions can help you stay on course
1. Reassess Your Retirement Income Strategy
Most people think of retirement income as “just annuities and withdrawals,” but there are smarter ways to structure this so you get stability, flexibility, and protection against inflation. Consider:
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Diversifying income streams such as Social Security, pensions, investment portfolios, and possibly annuities
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Evaluating inflation-protected products, like TIPS or inflation-adjusted annuities
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Assessing when you start drawing down assets, since there can be benefits in delaying withdrawals or optimizing tax timing
Blue Marble Advisors can help you model different scenarios so you know what tradeoffs look like for your lifestyle.
2. Revisit Your Annuity Options
Annuities often get a mixed reputation because people do not always have the right ones for their situation. When structured correctly, they can offer:
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Peace of mind with guaranteed income
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Protection for your beneficiaries
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Potential tax advantages depending on the type and your state
If you have not reviewed your annuity recently, or you are unsure whether your current one still makes sense, now is a great time to take another look. Refinancing or restructuring certain annuities might unlock better options.
3. Evaluate Your Tax Strategy
Taxes can take a big bite out of your returns, especially in retirement. Some important areas to examine include:
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Roth versus Traditional accounts and which makes more sense for you now compared to later
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Tax-loss harvesting or charitable donations to offset taxable income
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State tax implications, especially for retirees who are relocating or living between states
Smart tax planning is often undervalued, yet it can dramatically improve your net income in retirement.
4. Incorporate Longevity and Health Costs
People are living longer, and healthcare costs continue to rise. Accounting for this in your financial plan helps avoid unpleasant surprises. Consider:
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Long-term care insurance or hybrid policies
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Health savings accounts (HSAs) for both savings and tax advantages
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Setting aside a cushion in your budget or investments specifically for health and emergency costs
5. Review Your Estate and Legacy Plans
An estate plan is more than just deciding who receives your assets. It ensures your wishes are honored and reduces friction and costs for heirs. Important questions to ask include:
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Is your will up to date?
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Do you have appropriate trusts in place if needed?
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Are beneficiary designations current on IRAs, insurance policies, and other accounts?
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Do you have powers of attorney set up for both financial and healthcare decisions?
Legacy planning also involves thinking about the kind of impact you want to leave. This could include charitable giving, family foundations, or passing on investments with purpose.
Why Acting Now Matters
Delaying even small financial adjustments can have significant consequences. Market shifts, policy changes, and unexpected life events can throw off long-term plans. By acting now, you can harness compounding, reduce risk, and position yourself to make the most of opportunities.
If you would like a customized analysis of where you stand, reach out to Blue Marble Advisors. Together, we can review what is working well and what may need adjusting so that you are prepared for the future.