Using Spring Cleaning to Rethink Retirement Planning


The arrival of spring brings feelings of renewal and a time to refresh priorities. It’s also the perfect time to put your house in order, hence the expression “spring cleaning”. And a recent Nationwide blog post notes that now is the time for financial advisors to apply the concept of spring cleaning to their clients’ finances.

Once clients have their basic finances in order, advisors should “talk to them about their plans to save for retirement,” according to the blog. And while some of these options may seem basic, spring is the perfect time to review some of these essentials.

One of the easiest ways for clients to start saving for retirement is to join their employer’s 401(k) plan. Many employers offer dollar-for-dollar matches up to a certain percentage with this type of plan. And because contributions to traditional 401(k)s are tax-deferred, they aren’t taxed on the money until they’re withdrawn. And by then, the retiree could be in a lower tax bracket.

At national scale paycheck impact tool can show how it can affect customers. Financial advisors should also be prepared for conversations with clients who are looking to quit their job and are curious about how it affects their 401(k) or retirement plans.

Nationwide also recommends using a health savings account. HSAs can help clients save for health care in retirement. And in addition to providing potential tax advantages, HSAs can also reduce the need to use personal savings on health care costs in retirement.

Clients can also consider planning for their Social Security now, so they can incorporate it into their overall retirement plan. At national scale Social Security® 360 Analyzer allows advisors to use different scenarios to help with Social Security planning.

Nationwide’s Advocate Advisor editorial team also advocates for clients to diversify their sources of retirement income. “It’s likely that your clients won’t rely solely on Social Security income in retirement and will want to consider a diversified portfolio of retirement income, such as their 401(k), Roth IRA, or a variety of other investment opportunities,” according to Nationwide. “Because market conditions change over time, their investments can have varying degrees of returns. By diversifying their sources of retirement income, you can help your clients limit their financial risk and better prepare for retirement.

Once advisors have discussed retirement and investment options with their clients, the next step may be to discuss estate planning possibilities. “Inheritance planning is extremely important and gives you another opportunity to empathize and gain the trust of your client,” writes Nationwide’s legal advisor editorial team. “It’s never too early to start talking about your client’s estate plan and how they will pass on their wealth to their beneficiaries. It also allows you to work with their families and build additional relationships there.

At national scale offers a variety of actively managed ETFs for advisors that cater to a range of investment exposures and strategies for those seeking retirement income options for their clients as part of their broader retirement planning.

For more news, information and strategy, visit the Retirement Income Channel.

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