Get expert guidance on making the most of your retirement savings

  • Can I retire at 64?
  • Impressive nest egg with small cash flow needs
  • Need guidance on how to make the most of wealth
  • Financial planner can help create a retirement plan
  • Consider lifestyle choices and non-monetary assets
  • Avoid making big mistakes with your wealth
  • Find a fee-only planner with retirement planning experience
  • Integrate investment income and retirement account distributions
  • Consider tax implications of rental income and Social Security benefits
  • Search for suitable advisers through NAPFA, Garrett Planning Network, or XY Planning Network

Question: I’m single and have $800,000 in my 401(k), $30,000 in an HSA, $30,000 in bonds, $20,000 in a Roth IRA and $40,000 in a checking account. My monthly expenses are about $3,000 to $5,000 depending on travel, going out, etc. I own a rental condo worth $300,000 (with a $96,000 mortgage) that pays $1,950 a month. I also own 14% of an office building that pays $3,570 a month. I have one credit card with an outstanding balance of $38,000, and I will inherit about $600,000 from my parents in 10 to 15 years. My question is: Can I retire at 64? Would a financial planner be the right person to guide me through this and if so, what kind of planner should I look for specifically? Answer: First, we’d like to commend you for accumulating an impressive nest egg with relatively small cash flow needs. That said, you have a problem that experts say they see frequently with good savers who reach this point: They aren’t entirely sure how their wealth can help them realize their retirement dreams. “The question is how to prudently make the most of your ‘worth-living assets’ — what we define as those values, dreams, aspirations and priorities that make your life worth living,” says certified financial planner David Maurice at WorthWhile Wealth Council. Those might include lifestyle choices like travel or relocation, philanthropic causes, as well as non-monetary items like family and friends, he notes. Viewing your financial assets as the key to supporting those worth-living assets is the approach many certified financial planners try to help clients work toward says Maurice. “You have the luxury of a degree of financial security that requires holistic financial planning to interpret what can be highly personal terms,” says Maurice. In other words, you may want to get a financial planner to you make a plan that can help you quantify how much you’ll need to lead the life you want in retirement. “As part of the financial planning process, a CFP will help you create, implement and monitor a financial plan that integrates your unique personal and personal financial circumstances,” says certified financial planner and retirement income certified professional Marguerita Cheng at Blue Ocean Global Wealth. She adds that one can also “help you analyze and evaluate portfolio withdrawal strategies and options for claiming Social Security.” What’s more, said planner can help you avoid big mistakes. “Many savers and investors find themselves in the enviable position of literally having more money than they know what to do with. Tragically, this can mean making huge mistakes that are hard, if not impossible, to recover from. So, there can be serious downsides in not knowing what one’s wealth is worth to them,” says Maurice. It’s nearly impossible to say whether you can retire at 64 without knowing more about you — for example, what is your expected Social Security benefit and do you receive 14% of the $3,570 of office rent or if your 14% share of the rent is $3,570, says certified financial planner R. Deaton Smith at Thayer Financial. We’d also need to know your current age and other relevant personal information like whether you own the home you live in or if you rent and if you have any health issues or plan to marry and have children. What kind of financial planner might be right for you? Make sure you’re working with a fee-only planner who has plenty of experience with retirement planning and retirement income planning. Fee-only planners are only paid by the client and don’t earn commissions which lessens the possibility for conflicts of interest. “A retirement planner will be able to take into consideration the various sources of income, such as the rental condo and office building, and show how they will support a spending plan during retirement,” says certified financial planner Mark Brinser at Stewardship Advisors. In addition, working with a CFP will help you determine the best way to integrate investment income and retirement account distributions into the plan. CFPs complete rigorous education requirements, pass exams, perform thousands of hours of work related experience and are obligated to be fiduciaries, meaning they’re required to put their client’s best interests ahead of their own. “They’ll help break retirement expenses into needs and wants to create a dynamic retirement plan that takes into consideration possible months of no income from vacancies in the rental condo or expense fluctuations due to travel or other spending. It’ll also be important to figure out how Social Security fits into the plan and when to start claiming benefits given these various sources of income. With the rental income and possible distributions from retirement accounts, you may be looking at a situation where up to 85% of your Social Security benefits are taxable after full retirement age,” says Brinser. Ultimately, you’ve done a good job saving. “A financial adviser can help you with things like running future projections to see how long your savings may last, income planning to be as efficient as you can in retirement, credit card paydown and setting up your investments to generate income. A good planner will help you to live a full life in retirement and help you plan for the next chapter and what you’ll be doing with your time,” says certified financial planner and financial therapist Josh St. Laurent at Wealth in Yourself. To search for suitable advisers, visit the National Association of Personal Financial Advisors (NAPFA), Garrett Planning Network or XY Planning Network where you can filter criteria like fee structure, location and more.

Factuality Level: 2
Factuality Justification: The article is not a news report but rather a financial advice column. It provides detailed information about the individual’s financial situation and offers advice on retirement planning. The information is relevant and seems to be based on the expertise of certified financial planners. However, the article lacks objectivity and contains a significant amount of personal opinion and advice, which may not apply universally. It also includes some redundant information and does not address potential risks or downsides of the suggested strategies.
Noise Level: 3
Noise Justification: The article provides relevant and detailed information on retirement planning, financial advisors, and considerations for managing wealth. It offers actionable insights and solutions for the individual’s financial situation. The content is focused, supported by expert opinions, and stays on topic without diving into unrelated territories.
Financial Relevance: Yes
Financial Markets Impacted: No information provided
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article discusses retirement planning and the need for a financial planner, but does not mention any financial market impacts or extreme events.
Key People: David Maurice (Certified Financial Planner at WorthWhile Wealth Council), Marguerita Cheng (Certified Financial Planner and Retirement Income Certified Professional at Blue Ocean Global Wealth), R. Deaton Smith (Certified Financial Planner at Thayer Financial), Mark Brinser (Certified Financial Planner at Stewardship Advisors), Josh St. Laurent (Certified Financial Planner and Financial Therapist at Wealth in Yourself)

Reported publicly: www.marketwatch.com