fort worth retirement planning for insurance coverage

How Health Insurance Changes in Retirement

Health insurance in retirement is a crucial aspect aspiring retirees should include in their Fort Worth retirement planning. It is critical, because if unprepared for, health care expenses—especially for those in their advanced age—can easily drain retirement funds. This is especially true for those that are looking forward to an earlier retirement (younger than 65) before they become eligible for Medicare coverage. Having said that, this is something our Fort Worth retirement financial advisor can help you plan for. We can provide you with the steps you need to follow to make your retirement dreams a reality. To this end, our Fort Worth financial advisor shall discuss how health insurance changes in retirement.

Health Insurance Coverage Prior to Fort Worth Retirement Planning

One does not need a Fort Worth retirement financial advisor to recognize that the majority of health insurance coverage in this country is employment-based. That is to say, most people are insured as a benefit of their employment or as a dependent of someone who is actively employed.

Employers are able to provide competitive insurance coverage because it is cheaper for them. By pooling the policies of their employees, administrative expenses become lower and they can minimize the effect of adverse selection which drives up premiums. Adverse selection is the tendency of those who most need insurance (unhealthy, those with preconditions) to apply for health insurance.

Insurance companies manage this risk by also insuring healthy individuals that are unlikely to cost the insurance companies much in healthcare expenses. By insuring multiple individuals, the risk of adverse selection is minimized, which is what happens when employers pool the application of their employees. Lastly, businesses also enjoy tax write-offs associated with the insurance payments they provide to their employees.

Fort Worth Retirement Planning Should Have a Plan for Health Insurance in Retirement

The need for health insurance rises with age. However, this is also the time where health insurance premiums cost the most. Thus, aspiring retirees should work closely with their Fort Worth financial advisor in coming up with a Fort Worth retirement plan with a specific provision on how to afford health insurance in retirement. Aspiring retirees should also understand how Medicare works because this will be their main source of health care insurance coverage once they turn 65. Some households can also benefit from setting up Healthcare Savings Accounts that can become a source of retirement income—which can fund healthcare expenses.

Start Your Fort Worth Retirement Planning Now

A sound retirement portfolio should be able to provide for healthcare expenses after retirement. We have seen in the discussion above that healthcare insurances cost the most when they are most needed. However, this should not discourage aspiring retirees because we all have a resource in abundance that we can utilize to turn the odds in our favor, and that is time. Our experienced Fort Worth financial advisor will give you a roadmap based on your retirement goals that is easy to follow. Call us and start your Fort Worth retirement planning now!

piggy bank covered in band-aids

Stress Testing Your Investments in Dallas Retirement Planning

Life doesn’t always go as planned. One day, you’re all set for retirement, and the next day, you’re emptying out your savings. How do people end up in the latter scenario if they diligently did Dallas financial planning? Unforeseen circumstances, such as medical emergencies, loss of employment, and market crashes can put people in a financial slump. Retire Guides is here to prevent that risk. We make sure that your retirement investments are secure through the technique of stress testing. 

What Is Stress Testing?

Stress testing is a method used by banks to simulate extreme financial scenarios. Using computer analytics, a bank tests if they are able to survive periods of economic stress with their current assets. Banks are required to conduct stress tests and pass them, or else, government intervention will be needed. This is to protect the clients and make sure they are not harmed should the bank suffer a loss. Stress testing is applied to personal investments, particularly in retirement planning. When consulting a Dallas retirement financial advisor, they would recommend a similar stress test on your retirement investments.

Key Steps to Stress Testing

The first step to stress testing is creating a budget. We help you calculate your cash needs, specific to your income and lifestyle. During a rainy day, we make sure your long-term investments are protected while still having a source of cash flow. Liquidity management is key to minimizing investment risks. Retire Guides will be with you every step of your retirement journey. We carry out our stress test using hypothetical scenarios. We simulate market crises, natural disasters, and other scenarios to determine how they may affect your assets. Using historical data, we can test how your portfolio performs against previous investment crashes. 

Hire a Dallas Financial Advisor

Don’t worry if Dallas retirement planning seems complicated to you at first. Retire Guides is committed to helping you navigate the ins and outs. We are all about transparency. We use stress testing tools to give you better insight into Fort Worth retirement planning. Stress testing is a proven technique used by a Fort Worth financial advisor to help you develop a retirement income strategy. We provide you with detailed reports to gauge how your investment portfolio stacks up against investment risks. By doing so, we can determine whether or not your retirement investments will be enough to meet your needs. 

Contact Us for Your Dallas Retirement Planning

Retirement isn’t just a dream; it is achievable. We serve as your guide in Dallas retirement planning to make sure you stay on track toward a comfortable retirement. We provide personalized financial services, such as investment management, tax efficiency, and medicare planning. Our mission is to lead you to the path to financial freedom. For your Fort Worth financial planning, trust Retire Guides to deliver solutions with integrity and exceptional service. Get in touch with us today to schedule a consultation.

An accountant and a Dallas retirement financial advisor work together to give retirement planning advice to a client.

Why Accountants and Financial Advisors Should Work Together

When you sit down to start your Dallas retirement planning, it might not be the best idea to do it on your own. Like with most things in life, this critical task can be done better if you put together a team of the right people around you to advise you every step of the way. To get the most out of your Dallas retirement planning, you need to have both an accountant and a Dallas retirement financial advisor in your corner.

Dallas Retirement Planning With An Accountant

You might know an accountant as someone who does your bookkeeping and helps you prepare your tax returns. You can also put them in charge of keeping track of your credit card and bank statements and making sure that your bills are all paid on time. This means that your accountant is always aware of how much money you have coming in, and how much you are spending, and they can help you forecast how much money you have available for investing. When the time comes to sit down for some Dallas retirement planning, this information is critical for choosing what financial instruments and investments to put your money in so that you can meet all your financial goals.

Dallas Retirement Planning With a Dallas Financial Advisor

Your Dallas retirement financial advisor is the person who is informed about the investments and financial instruments that are available to you at any given time. They are also there to advise you about setting personal financial goals and put you on the path to meeting them. Your Dallas financial advisor will need to know all about the state of your finances in order to give the most effective and practicable advice. As you can see, this is why it’s beneficial that they work with your accountant.

Dallas Retirement Planning Goes Best When Your Accountant and Dallas Financial Advisor Work Together

When both your accountant and Dallas retirement financial advisor are on the same page, they can put together their efforts to maximize your returns on your investments, helping you to reach your financial retirement goals earlier. They can schedule your payments of bills and time your investments, all while combining their knowledge of tax laws and regulations to minimize your tax bills. And should sudden and unexpected changes occur to the economy or to your personal financial state, they can make adjustments in order to keep you on track to meet your retirement financial goals. 

Let Retire Guides Help You Find Your Dallas Retirement Planning Dream Team

Dallas retirement planning is a sensitive and personal topic requiring a lot of trust and faith to exist between yourself, your accountant, and your Dallas retirement financial advisor. That’s why Retire Guides is committed to helping you find the right people to work with. This way, you can have peace of mind that your money and your legacy are in good hands. The search for the right accountant and Dallas financial advisor is as easy as scheduling an appointment today!

A Dallas financial advisor discusses potential investing strategies with a client.

Types Of Active Investing Our Dallas Financial Advisors Suggest

Investing is a tool that allows investors to put the money they have saved to work. If done properly—early, consistently, and well-planned—it can build a substantial amount of wealth that one can live on in one’s golden years. In this article, our Dallas retirement planning expert will discuss the types of active investing your Dallas financial advisor may recommend.

Active vs Passive Investing: Which Is Best for Your Investment Portfolio?

Generally, there are two types of investing, active and passive investing, which differ mostly on your involvement as the investor when it comes to your investment portfolio. investment portfolio. 

Passive Investing 

Passive investing, on the other hand, involves less buying and selling, which is exemplified by the phrase ‘buy and hold.’ Passive investors buy into index funds or mutual funds.

Active Investing

Active investing is a hands-on approach to investing with frequent buying and selling. This type of investing is employed by fund managers and active market participants, hopefully under the guidance of a competent Dallas financial planner. Usually, our Fort Worth financial planners would steer our clients towards passive investing but active investing also has its merits. You don’t need to pay the fees mutual funds charge if you invest on your own. With an actively-managed portfolio, you have the flexibility that other investors in index and mutual funds don’t have. You can build an investment portfolio, with guidance from your Dallas financial advisor, that is tailor-fit based on your income level, retirement goals, and time horizon. Should you decide on active investing, consider the following techniques.

Our Fort Worth Financial Planner Suggests Dividend Investing

When investors own stocks of a company, they literally own portions, albeit small, of that company. Companies may opt to distribute some of their earnings to their stockholders in the form of dividends. Dividend investing is a form of active investing where your Dallas financial advisor would guide you to invest in dividend-paying stocks. The advantage of dividend-paying stocks is regular cash flow (although not always guaranteed) while still maintaining the potential for stock appreciation

Our Dallas Financial Planner Suggests Sticking with Blue-Chip Companies

Active investors who are in it for the long run should listen to their Dallas financial advisor and stick with Blue-Chip companies. These are companies that are well-established, reputable, and financially sound. These are your “boring” companies that show little but consistent growth through the years. While up-and-coming companies are more exciting and have higher potential for growth, Blue-Chip companies have a proven track record of stable growth and can better weather and bounce back during downturns in the market. 

Dollar-Cost Averaging

Dollar-Cost Averaging (DCA) is investing the same amount of money in the same stock or sets of stock at regular intervals. DCA is a technique employed by our Dallas financial advisors because it is an easy way of active investing. When DCA is used, investors buy more of a stock when it is priced low and buy less when it is expensive. This outperforms those who are trying to buy low and sell high because no one can predict the movement of the market.

Start Building Your Investment Portfolio

Whether it is active or passive investing, buy and hold, Dollar-Cost Averaging, or timing the market, the highest determinant of investing success is time. Call us now and schedule a consultation with our Dallas financial advisors. Our Fort Worth financial planners will guide you every step of the way towards the retirement of your dreams.

Fort Worth Financial Advisor Doing Tax Planning

Basics of Tax Planning for Fort Worth Retirement

Tax planning is an important aspect of Fort Worth Retirement Planning. Simply put, Retirement Investing is about saving money for a nest egg while we are in our productive years. Ideally, by the time we retire, this nest egg is large enough to generate income that we can live off of in our retirement years. The operative word there is income because income is taxable. Retirement financial advisors have to account for taxes in their financial planning to make sure their clients have enough for their dream retirement life. It is our mission here at Retire Guides to help our clients make smart investment and financial decisions towards making their retired living achievable and enjoyable. To this end, our Financial Planning experts have come up with a short article on the basics of tax planning.

How Will Your Fort Worth Retirement Income be Taxed?

In order to incorporate retirement tax charges to your Fort Worth Retirement Planning, we need to understand the different regimes that apply to the different retirement investment instruments we can use.

  • Roth IRA or Roth 401(K) – Incomes arising from or withdrawals to your Roth IRAs or Roth 401(K) account are tax-free because the tax has been paid when you made the deposit. This instrument is recommended by our retirement financial advisor because the money invested in these accounts grows tax-free.
  • Traditional IRA or 401(K) – These are taxed at the same rate as your income tax bracket. However, because retirement incomes are generally lower than when one is working, retirees are effectively paying lower taxes.
  • Social Security – Depending on your income filing and computation, 50% up to 85% of your social benefits can be taxed while the rest is tax free.
  • Long-term investment such as stock - Capital gains arising from sales of stocks can be taxed up to 15%, depending on taxable income.
  • Municipal bonds – Interests and capital gains from municipal bonds are tax-exempt.

Plan for Your Fort Worth Retirement with a Trusted Retirement Financial Advisor

The tax rates charged on retirement investment income discussed above are just some of the things you have to consider when planning for your Fort Worth retirement. Retirement financial planning is a very personalized process. There are generic retirement investment strategies that can benefit all such as saving more but there are strategies that are more applicable to some than others. Thing is, in order to make the most out of your savings, we need to do the numbers to determine which combination of retirement investment instruments are optimal for your unique situation. Our team of experienced retirement financial advisors can help you navigate this as you journey towards your retirement dream by providing you a retirement roadmap that is customized to your personal goals. Call us now to schedule an appointment and let us make your retirement dreams a reality.

An elderly couple sits down with their Dallas financial advisor for estate planning

The Basics of Estate Planning

You might think that Dallas estate planning is a luxury that only benefits the rich. But you would be wrong–ask any Fort Worth financial advisor and they will tell you that it is something everybody should be doing so that when the time comes for you to go, you save your loved ones a lot of legal wrangling and minimize any expenses or taxes that come their way, ensuring that you leave behind a proper legacy.

Fort Worth Retirement Planning Will Secure Your Legacy

While we can’t take it with us when we go, we can choose who gets to inherit what we leave behind. The purpose of legacy planning is to sit down with your Fort Worth retirement Financial Advisor and formulate a game plan that makes sure that your affairs are handled properly and that your assets are preserved for your chosen beneficiaries. This means making the most out of the financial tools at your disposal. That’s why any proper Dallas estate planning is focused on crafting an ironclad will and examining the utility of a trust. If this is something you think you may need to do soon, a Dallas financial advisor is only a phone call away!

Start Your Dallas Retirement Planning With a Will and Trust Review

During a Will and Trust Review, you and your Dallas retirement financial advisor will go over your assets to make sure that they remain protected, and are taken over by your chosen successors. The major difference between a will and a trust is that a will goes into effect only after you pass away, while a trust will go into effect while you are still alive. Talk to your Fort Worth financial advisor to see which one is best for you to use in your particular situation, or if a combination of both is necessary to meet your needs. If you think you’re ready to start planning for the future and beyond, it might be time to get in touch with a Fort Worth retirement financial advisor.

Find the Estate Attorney Perfect For Your Fort Worth Retirement Planning Needs

Fort Worth retirement planning is a sensitive and personal topic requiring a lot of trust and faith to exist between yourself and your Fort Worth retirement financial advisor. That’s why finding the right estate attorney to work with is a key step to giving you peace of mind that your legacy is in good hands. The search for the right Dallas financial advisor is as easy as scheduling an appointment today!

saving for Dallas retirement planning

How to Start Passively Investing for Retirement

When it comes to Dallas Retirement Planning, investment management strategies can be better understood by categorizing them as either Passive Investing or Active Investing. While these investment strategies are not mutually exclusive from each other, it is important that our clients understand the difference so that they can make smart investment and financial decisions as they journey toward their retirement destination.

Dallas Retirement Planning 101: Active vs Passive Investing

As a start, financial planning advisors usually distinguish active investing and passive investing as a strategy through the frequency of buying and selling done by the investor. Passive Investing is usually associated with buy-and-hold strategies or buying into securities such as stock, mutual funds, or indexes and holding on to them for a long time while waiting for them to appreciate. On the other hand, Active Investing is associated with market timing strategies or ‘buying low and selling high.’ While the goal is the same for passive investing (to buy low and to sell high), the time horizon in active investing is shorter and the buying and selling more frequent. You can read more about active and passive investing in this guide prepared by our Dallas retirement planning experts.

Passive Investing for Dallas Retirement Planning

Here in Retire Guides, we recognize that personal circumstances like retirement goals differ from person to person. We understand that some—while staying committed to their retirement goals by saving regularly for investing—may not have the spare time or willingness to commit to an active investing strategy. In these cases, our Dallas Retirement Planning will be based around passive investing. Our retirement financial advisor will craft a customized retirement plan employing passive investing that they can easily follow to get started.

Set Aside Money Regularly for Passive Investing

Having enough savings is the number one prerequisite to retirement investing. You can have perfect knowledge or all the right ideas about investing but they cannot be implemented without having enough capital. Save regularly until it becomes a habit.

Passive Investing through Dollar-Cost Averaging

One of the weaknesses of buy-and-hold strategies is buying at the highs. This also applies to active investing but active investors usually implement cut loss strategies to mitigate this risk. Passive investors can implement dollar-cost averaging (DCA). DCA is a strategy of buying securities with the same dollar amount at regular intervals. For example, you are implementing a passive investing strategy by buying stock X once a year with a budget of 1,200 dollars. You can minimize the risk of buying at the highs by splitting your budget and buying at regular intervals (e.g. buying 100 dollars’ worth of stock X every end of month). The buying pattern of DCA may make it seem like an active investing but you have to remember that you are buying without regard for the stock price. Your goal is to buy regularly with a fixed amount of dollars. With this strategy you buy more of a stock when it is cheap and buy less when it is expensive. Additionally, an added bonus of employing DCA is it pairs well with the habit of saving regularly.  

Passing Investing Requires Time in the Market

Passive investing when done properly (i.e. investing in the right companies that have shown slow yet reliable growth, investing regularly through DCA) can be very rewarding but it takes time. The ‘hold’ part of buy and hold requires time in the market for it to bear fruit.

Start Your Dallas Retirement Planning with Retire Guides

Our commitment here in Retire Guides is to make retirement living achievable for the average American through sound financial planning and retirement investing. We aim to do this by providing retirement plans that are customized to our clients’ unique goals. Schedule a consultation now and let’s journey together towards your dream retirement.

Medicare paperwork with Parts A, B and C on it

Understanding Medicare in Dallas Retirement Planning

Planning your retirement may seem like an overwhelming task, especially if you feel like you have to do everything on your own. The good news is that your retirement partners are here to help. A Dallas financial advisor can help you draw out the roadmap for a comfortable retirement. They can provide you with services focused on investment, tax efficiency, and estate planning. Apart from those, Dallas financial planning involves Medicare planning. So, what do you need to know to get the most out of your insurance coverage?

What Is Medicare?

Medicare is a government-sponsored health insurance program for people aged 65 years old and above. Some people don’t need to pay a monthly premium if they or their spouse paid Medicare taxes while they were still working. If a person doesn’t qualify for premium-free, they can still purchase a Medicare program for a monthly premium. Paying premiums or insurance expenses is a big part of Dallas retirement planning. If you think you need assistance in Fort Worth retirement planning, then consider the services of trusted financial advisors.

What Type of Medicare Do I Need?

There are different parts of Medicare that cover specific health services. Part A covers inpatient services, hospice care, and care in a nursing facility. Medicare Part B covers outpatient care, medical supplies, and doctors’ fees. Especially for the elderly, Part A and Part B aren’t usually enough to cover their healthcare costs, as the bulk of their expenses is for medicine. For this, Part D is needed in Fort Worth financial planning. Medicare Part D covers prescription medication, including recommended vaccines.

Do I Need Supplemental Insurance?

Aside from hospital, doctor’s, and pharmacy bills, there are still some out-of-pocket expenses you can encounter after retirement. These include dental care and general wellness expenses. For these types of costs, Medicare supplement insurance may be recommended in your Dallas retirement planning. This type of insurance could be advantageous if you need frequent physical examinations.

How Can a Dallas Financial Advisor Help Me?

An important step of Dallas financial planning is keeping track of your health insurance expenses. Insurance policies contain long conditions that you must understand inside out, along with fine print that you could miss. A Fort Worth financial advisor will help you navigate the ins and outs of your policy to make sure that you get the coverage that you deserve. In addition to that, a Dallas retirement financial advisor can help you choose the right Medicare program for you.

Your Partner in Dallas Retirement Planning

To get the most out of your Medicare coverage, turn to the financial advisors at Retire Guides. Our mission is to help our clients make wise investments with the help of our personalized, exceptional financial services. We are here to listen to your needs and to create a retirement plan that will let you live without worries. Schedule an appointment with us today to get started on the next chapter of your life.

A man adding a small amount to his savings, the foundation for his Fort Worth retirement planning.

When to Start Saving for Retirement

‘When should I start saving for retirement?’ is a question that retirement financial advisors get asked often. The answer is simple and never-changing: start right now, as soon as you can. Your savings are the foundation for your Fort Worth retirement planning, and it is those that learn this quickly that get to retire earlier and enjoy greater benefits. Today, we’ll discuss how early savings leads to independent financial planning, which in turn leads to a greater retirement investment portfolio.

Learning to Save Early Will Make Fort Worth Retirement Planning Easier

Saving as soon as you have an income is not just about the total amount of money you have available for retirement. It is also about learning discipline and building the financial habits that will win you financial freedom in the long run. Those who learn how to save in their twenties will do so by saying ‘No’ to the temptations of immediate gratification that require frivolous spending. This means knowing how to weigh the value of each transaction. An early saver will also have a cushion to help see them through the bad times and enough capital to make the most of the good times. They will learn to take the long financial view of things, a required skill for both financial planning and retirement planning.

Your Savings Will Determine Your Fort Worth Retirement Planning Options

Having a healthy savings account means that when a retirement investment opportunity knocks, you have the liquidity to take full advantage of it. It also means both having a greater starting amount and a lot more time to put long-term investments and financial instruments to work for them. This is critical for those that prefer to rely on independent financial planning. If you want to minimize risk and prefer to play it safe with a reliable investment with a more modest return, having something to invest in it early allows you to overcome the lower returns by having a longer investment horizon. Having savings early also means more chances for you and your retirement financial advisor to diversify your retirement investment portfolio.

Fort Worth Retirement Planning With a Retirement Financial Advisor You Can Trust

When it comes to retirement planning, you need advisors that you can rely on to give the best counsel that is tailored for your specific circumstances. At Retire Guides, our team of financial advisors is guided by the principles of integrity, trust, and exceptional service. We strive to help our clients arrange their financial affairs in an efficient and effective way, with an eye toward greater financial freedom. Contact us today and start the conversation about the path to making the most out of your retirement!

jar labeled "retirement" with cash inside

How to Make Wise Financial Decisions Now For When You Retire

There are multiple ways to approach retirement planning. However, from the experience of our Dallas financial advisors, retirement planning is an activity that most people neglect doing. Some people believe they don’t make enough money to start saving for the future. Some believe that it is still too early to start thinking about their retiree years and would much rather focus on the present. But most just don’t know how or where to begin. In this article, our Dallas retirement financial advisors will discuss how you can begin your Fort Worth financial planning. 

Live Below Your Means

“Living below your means” has been getting a bad rep recently as it is being portrayed unfairly as living miserably by skimping on basic comforts like takeout coffee and restaurant dinners. Our Dallas financial planning team could not disagree more. “Living below your means” is making sense of the reality of how much you earn, how much you spend, and how these two things balance out. One takeout coffee or a restaurant dinner a day won’t make you poor if at the end of the month you still have savings that align with your goals. One takeout coffee or a restaurant dinner a day will make you poor if you had to borrow money for it. We recommend that you review your expenses. When you do, you will be surprised that you can maintain your lifestyle and still have savings.

Start Saving Early

As you discover how much you can save, what can you do with this extra money? Invest it! Make your money work for you now, while time is still on your side. By doing so, you get to harness what Albert Einstein referred to as the eighth wonder of the world, Compounding Interest. Compound interest is the interest that you earn on previously earned interest. Let’s say your $100 earns 10% interest annually. On its first year, it becomes $110 and on the second year, your investment becomes $121. The ‘extra’ is the compounded interest. As our veteran Dallas retirement planning team has seen over the years, the old investment adage “it’s not about timing the market, but about time in the market” holds true.

Diversify Your Portfolio With Our Dallas Financial Advisors

We end with what is probably the most famous saying about investing, “Don’t put all your eggs in one basket”. By diversifying your portfolio, we limit the risk exposure of our investment. One blue chip company may fail, but a set of blue chip companies from different sectors failing is highly improbable.

Start Planning for Your Future Now

Retirement is a matter of when and not if. Regardless of where you are in your retirement planning journey, our Fort Worth Retirement planning experts can assist you. Contact us now to schedule an appointment and let Retire Guides make your retirement dreams a reality.