I want to discuss three significant risks that can affect your returns and impact your retirement savings. Whether you’re already a client or not, understanding and planning for these risks is crucial to preserving your wealth.

Risk #1: Taxes
Taxes pose the most significant threat to your nest egg in most accounts. Our goal is to maximize your wealth while minimizing tax burdens. Utilizing tax-free accounts like a Roth IRA or Roth conversion can help you avoid taxes on interest and eliminate required minimum distributions.

Risk #2: Long-Term Care
Long-term care risk, or medical emergencies, can force you to sell investments quickly without a plan, possibly resulting in losses and tax liabilities. Creating a strategy to address long-term care costs is essential, especially considering that women, who often outlive men, are particularly vulnerable to this risk.

Risk #3: Inflation
The third risk is inflation, a concern on everyone’s mind given the rising prices of goods and services. Over time, inflation erodes the purchasing power of your retirement funds. To combat this, we recommend a two-bucket approach, ensuring a portion of your money is invested to outpace inflation.

At Secure Money Advisors, our team can help you develop a plan to mitigate these risks and safeguard your retirement.