Don’t Let These Financial Surprises Trip You Up
Financial surprises can quickly derail your plans, creating stress and uncertainty. For example, retirees often expect lower taxes but may face higher-than-anticipated rates when withdrawing from retirement accounts. Changes in tax laws or specific income sources, such as Social Security or pensions, can add to the burden. By staying aware of these risks and planning withdrawals strategically, you can manage your tax exposure effectively while keeping more of your hard-earned wealth.
Another common financial surprise is longevity. Living longer than anticipated may seem like a blessing, but without proper financial preparation, it can lead to difficulties in sustaining your desired lifestyle. Advances in healthcare mean that planning for a long lifespan is more critical than ever. Creating a financial plan that accounts for extended life expectancy and potential healthcare costs ensures you’ll remain financially secure throughout your golden years.
The good news is that these surprises can be addressed with proactive steps. Regularly reviewing your financial strategy with a trusted advisor allows you to adapt to changes in tax policies, healthcare advances, or personal circumstances. By planning ahead, you can mitigate the impact of financial surprises, stay on track toward your goals, and enjoy peace of mind knowing you’re prepared for whatever comes your way.
For personalized guidance tailored to your unique situation, contact Diversified Asset Management, Inc. at info2@diversifiedassetmanagement.com or (303) 440-2906.
Robert J. Pyle, CFP®, CFA, AEP® founded Diversified Asset Management, Inc., in 1996 to provide personalized, comprehensive wealth management services to successful individuals, families, single women, and business owners. His specialty is addressing the complex financial needs of self-employed professionals, corporate executives, and small-business owners. Our disclosure can be found here. The views, opinions, information, and content provided here are solely those of the respective authors, and may not represent the views or opinions of Diversified Asset Management, Inc. Diversified Asset Management, Inc. cannot guarantee the accuracy or currency of any such third party information or content, and does not undertake to verify or update such information or content. Any such information or other content should not be construed as investment, legal, accounting, or tax advice.