Most financial advisors are general practitioners. They don’t specialize in retirement. We find that this leads them to accepting and recommending generally accepted advice. While this general advice may be good for some, it certainly isn’t appropriate for everyone.

retirement planning is a dynamic, fluid process. What’s good today, may not be good tomorrow. As times change, your advisors advice should change as well.

We find that this isn’t the case and too often the same advice is given to clients that was made sense 15 years ago, but is out of date today.

This video explores one of the biggest mistakes we constantly hear from new clients that their previous advisor had told them. We when do the analysis, and show them the math, they are shocked that such reputable firms would give such bad advice for their situation.

It’s not that they are bad people, it’s just that they are general practitioners and don’t specialize in retirement. Often times, retirement planning is just as new to them as it is to you.

Do you have a retirement plan that goes beyond allocating funds to truly fit your needs? We can help you create a retirement life plan customized for your retirement vision and legacy. Call us at (877) 404-0177

If you have $500K or more and would like a partnership with a firm to help you manage your investments and financial plan as in these videos, click on this link to connect with our advisors:
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When it comes to saving for retirement, individual retirement accounts (IRAs) are a popular choice for many people. However, advisors don’t always give the best advice about how to manage your IRA during retirement. Here are some of the biggest mistakes advisors make with IRAs in retirement.

1. Failing to consider taxes

One of the most significant mistakes advisors make with IRAs in retirement is not considering the tax implications of making withdrawals. While your contributions to traditional IRAs were tax-deductible, the money you withdraw is taxed as ordinary income. This means that larger withdrawals can lead to a higher tax bill, potentially putting a strain on your retirement finances.

Advisors should consider your tax situation when creating a withdrawal plan from your IRA. They should also educate you about how to optimize your withdrawals so that you minimize your tax bill.

2. Not considering inflation

Another common mistake made by advisors when managing IRAs in retirement is not accounting for inflation. Inflation, which is the increase in prices over time, can erode the value of your savings over the years.

Advisors should consider inflation when creating a retirement plan. This means that your withdrawals should be adjusted for inflation so that you can maintain your standard of living over time.

3. Overlooking required minimum distributions (RMDs)

When you reach age 72, you are required to take minimum distributions from your traditional IRA each year. Failing to take these required minimum distributions (RMDs) can result in a 50% penalty on the amount you should have withdrawn.

Advisors should remind you about RMDs and help you develop a plan for taking them. They should also be aware of other strategies, such as Qualified Charitable Distributions (QCDs), which can help you optimize your withdrawals and lower your tax bill.

4. Underestimating your retirement expenses

Another mistake made by advisors when managing IRAs in retirement is underestimating your retirement expenses. Advisors may assume that your expenses will decrease in retirement, but this is not always the case. In fact, many retirees find that their expenses increase due to healthcare costs, travel, and other activities.

Advisors should account for potential increases in retirement expenses when developing a withdrawal plan. They should also consider your lifestyle and any changes you expect to make during retirement.

5. Ignoring the impact of market volatility

Finally, advisors may make the mistake of ignoring the impact of market volatility on your IRA. The stock market can be unpredictable, and significant fluctuations can impact the value of your IRA.

Advisors should help you develop a withdrawal plan that takes market volatility into account. This may include adjusting your withdrawal rate to reflect changes in the market, or diversifying your investments to minimize the impact of market fluctuations.

Conclusion

Managing an IRA during retirement can be challenging, and advisors don’t always provide the best guidance. By avoiding these common mistakes, you can help ensure the longevity of your IRA and your retirement finances. It’s essential to work with a financial advisor who understands your goals and can provide customized guidance that reflects your unique situation.