Milestone Planning
Navigating Key Financial Planning Milestones for Franklin, TN Clients
For residents of Franklin, Tennessee, and the surrounding areas, financial planning opportunities at milestone ages can help you identify and address important issues through the decades. Access to professional wealth management services in Middle Tennessee is an essential component in navigating the complexities of financial planning and helping you achieve your long-term goals as you approach retirement.
Franklin, has become a prime location for wealth management services, attracting top-tier professionals and firms. The city’s thriving economy, high quality of life, and proximity to Nashville make it an ideal destination for those seeking expertise in financial guidance.
Explore the importance of wealth management, the benefits of working with experienced Franklin, Tennessee financial advisors, and how to find the right firm in Franklin, Tennessee, to navigate the complexities of financial planning. Here are some suggestions to begin a conversation with our team.
Ages 50 – 59 ½: Last Chance to Accumulate
- Age 50: Catch-up contributions
- Age 55: Early retirement options
- Age 59 ½: Penalty-free IRA withdrawals available
If you are in your 50s you may be in the midst of peak career earnings and may be in the last decade of accumulating assets for retirement. We call this the Retirement Red Zone where prudent financial decision making is crucial. It’s also an important time to consider a retirement income strategy, especially if you are thinking about early retirement.
- Schedule a contribution review with a professional financial advisor.
- Make sure you know about catch-up contributions to qualified retirement plans and IRAs.
- Investigate strategies that will provide future tax planning flexibility when you begin taking distributions.
- Learn about a Separation from Service withdrawal from your 401(k) if you plan to retire early.
Ages 60 – 66: Transitioning to Retirement
- Age 62: First eligible for Social Security benefits
- Age 65: First eligible for Medicare benefits
- Age 66: Full Social Security benefits
In your 60s, it’s important to understand the importance of building a distribution strategy aimed at maximizing income in a tax-efficient way. Age 62 is the age at which Social Security benefits become available. Working with an experienced financial planner can help you consider how potential Social Security benefits fit into your overall retirement plan.
- Meet with a professional financial advisor and your CPA to create distribution and drawdown strategies.
- Consider consolidating retirement plan assets and Roth IRA conversions.
- Understand your Medicare options and premiums before your 65th birthday.
- Learn how to optimize your retirement benefits.
- Review survivor benefits for married couples.
Age 70+: Taking Tax-Efficient Income Distributions
- Age 70: Maximum Social Security benefits
- Age 72: RMDs for traditional IRAs
Tax-efficient income distribution becomes paramount when you are in your 70s. At this time, you may also want to discuss beneficiary designations and consider your legacy strategy. Make sure you are aware of when Required Minimum Distributions (RMDs) begin to avoid the high price of failing to take your RMDs.
- Introduce your beneficiaries to your financial planning team if you haven’t already.
- Understand your options for RMDs and if you are required to take more than you need, such as making a charitable gift or funding a 529 savings plan for grandchildren.
- The SECURE Act will determine when you are required to begin taking RMDs. Your CPA and financial advisor can help you determine aggregate RMD amounts.
Navigating the key financial planning milestones at various stages of life is crucial. By understanding and leveraging these opportunities, you can make informed decisions that pave the way for independence and fulfilling retirement. Working with experienced financial advisors in Franklin, Tennessee our goal is to help you ensure that you receive the tailored advice and strategic planning we believe necessary for achieving your financial goals.
Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.
Any opinions are those of the author and not necessarily those of Raymond James. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy selected, including diversification and asset allocation.
