The Truth about the Magic Number for Retirement Savings

Trying to simplify your plan for retirement savings with a magic number that works for everyone?

Want to know if a magic number really works as a retirement plan?

Looking for advice from professionals in wealth management in Ann Arbor about saving for retirement?

We understand that planning for retirement is complicated. Really complicated. And it’s actually harder to figure out and more abstract the further away you are from retirement age. That’s where the idea of the magic number for retirement savings comes in handy. Without needing incredibly specific plans for retirement, calculating the magic number allows people to begin a solid retirement fund early in life to setup success and comfort later on.

But the truth about the magic number is that it’s just a rough estimate and can’t take the place of a retirement plan tailored to your life.

What’s your magic number?

The general rule for calculating the magic number is to save ten times your final salary by retirement age, or 67 years. That means if you expect to make $85k/year at retirement, you should have saved $850,000 in a retirement fund.

This is a great place to start, but leaves a lot out of the equation like your precise social security benefit, plans for travel, reduced living expenses if you downsize or move to a less expensive area, or any interest in leaving an inheritance for children.

Because you could end up needing a lot more or a lot less that your magic number depending on how you want to spend retirement, basing your plan on the oversimplified equation is usually not the best route. 

Trust your retirement plan to a professional in wealth management in Ann Arbor

Don’t settle for a retirement savings goal that’s one-size-fits-all. Get a plan tailored to your unique situation, wants, and needs with Imber Wealth Advisors in Ann Arbor. Give us a call today to make sure you’re on the right plan for the retirement you’ve been dreaming of.

Should You Take an Early Retirement Offer?

Are you considering early retirement?

Is your employer putting together an early retirement offer that you’re unsure about?

Want to know if your early retirement offer is worth what you deserve?

An offer of early retirement can sound generous and extremely appealing to an employee who is facing retirement within the next several years. While it can be a great option for some, we have to remember that ultimately an employer’s motivation behind an offer of early retirement tends to be cutting costs and saving money.

So, is early retirement a good option for you? Let’s take a look at some of the considerations you should make when weighing your early retirement offer.

1. Does the offer include medical coverage until you are eligible for Medicare?
With the high cost of medical care these days, make sure you’re considering this expense when you’re looking at the numbers.

2. How does the compensation compare to the amount you would earn as an employee?
Know the precise amount you can expect per year with the offer and compare to the salary you would earn as an employee.

3. Is there a bonus to cover the difference between the offer and the amount you would have earned as an employee?
It’s possible your employer will cover the difference between salary and your retirement offer with a bonus, but make sure you consider any taxes you’d owe on that sum.

4. Is the company experiencing a period of transition?
Think about what’s prompting the offer such as downsizing or merger. 

5. Is the company likely to let you go down the line if you pass on the retirement offer?
If your company is struggling and continues to do so after you pass on an offer, you may end up being terminated without an offer.

6. Will the offer bridge the gap between retirement and when you receive social security?
If your early retirement is several years before social security benefits kick in, compare the offer to your expected benefits and make sure you’ll earn enough to afford retirement.

7. Is there room for negotiation in the offer?
If you think negotiating a better offer is an option, make sure you ask for what you need to be comfortable. But keep in mind that the first offer tends to be the best.

8.  Can your nest egg sustain an early retirement plan?
If the offer falls a little short of what you planned, check the status of your nest egg to see if it can make up the difference.

9.  Are you considering tax or other penalty implications on the offer?
When you’re crunching numbers, don’t leave out any taxes or penalties you are expected to pay on severance, bonuses, and etc.


10. Do you have a high-stress or extremely fulfilling job?
There are costs and benefits to consider that aren’t easily quantified, like the stress or joy you get from your job.

11. Have you discussed the offer with an independent professional in wealth management in Ann Arbor?
Your employer may offer counseling to help you understand your benefits with early retirement, but you should also talk to someone independent from the company so you know your best interest is represented.

Get advice on early retirement from a professional in wealth management in Ann Arbor.

Be confident in your response to an early retirement offer! Discuss all your options and benefits with our team of professionals at Imber Wealth Advisors. We look forward to hearing your story and helping you meet your goals in retirement. Give us a call today.

5 of the World’s Most Epic Road Trips

If there’s one thing on your retirement checklist, it should be a great road trip! After years of hard work, you deserve a great vacation with your family! Or just go solo!

Booking.com, one of the leaders in connecting travelers with places to stay, highlights some of the best road trips this year.

While one of these trips is in the United States, the others require a passport, so make sure you make your travel plans well ahead of time!

1.    Pacific Coast Highway – San Francisco

This route along the iconic California coast from San Francisco down to San Diego is known for having some of the most scenic views in the world. Over 621 miles long, you’ll see amazing coastal views, seaside villages, and sunny wine vineyards.

2.    Great Ocean Road – Melbourne, Australia

This route along the southern coastline of Australia is full of cliff-hugging turns, seascapes, and rain forests. At 170 miles long, you’ll start in Torquay, which is home to Apollo Bay and Great Otway National Park.

3.    Southern Scenic Route – Queenstown, New Zealand

This road trip encompasses everything from deserted beaches, native forests, waterfalls, lakes, and snow-covered peaks. The 380 mile route is perfect for scenery and adventure lovers.

4.    Amalfi Coast – Sorrento, Italy

Warning: this trip isn’t for the faint of heart! Narrow, winding roads along steep clifftops will give you stunning views of rugged shorelines, fishing villages, and cliff-side lemon groves. This route is 37 miles long between Sorrento and Salerno, and is filled with boutique hotels and coastal towns.

5.    Overwater Highway  - Xiangshan, China

Labeled as the Overwater Highway, this seven-mile road is built in the middle of a river and follows the natural curve of the valley. The views of the valley itself coupled with the nearby fishing villages will have you talking about this trip for weeks afterwards.

So, are you ready to hit the road, or hop on a plane? To help make your travel dreams a reality, talk to a financial advisor in Ann Arbor about your retirement plans! You’ve worked hard for years to achieve a worry-free retirement, and we want to help you have the retirement you’ve always wanted, whether that includes road trips, or just quality family time at home.

Whatever your dreams are, we want to help you reach them. To schedule your no obligation consultation, contact us today!

3 Money Mistakes to Avoid When You Retire

Have you recently retired?

Are you planning your retirement?

Do you want to make sure you have an easy, worry-free transition from working to retirement?
It can be difficult to make sure you have everything lined up for a perfect, no-stress transition to retirement, but talking to a financial advisor can help!

These simple tips from your financial advisor can help you achieve your dream retirement:

1. Don’t claim social security too early. Although you can start claiming retirement benefits at 62, experts caution that it still might be too soon. The longer you wait, the more you’ll receive in monthly benefits. 
2. Don’t discount inflation. Do you remember how much a pack of gum, a gallon of gas, or a gallon of milk cost when you were a kid, and how much they cost now by comparison? That’s inflation. If you discount inflation when you’re planning for retirement, you may find that you’re being too conservative when it comes to asset allocation.
3. Don’t forget to plan for medical and long-term care costs. According to Time.com, “The cost of medical care rises higher than general inflation, at a rate of about 5% or 6% a year.” A mistake many people make is not taking into consideration out-of-pocket costs, and the costs of items not covered by Medicare, like hearing aids, and dental work.

Even if you and your partner have been diligent savers, you could forget to plan for the factors that may make your path to retirement a bit bumpy. Talking to a certified financial advisor in Ann Arbor could help!

At Imber Wealth Advisors, we take into consideration your lifestyle, your overall health, and your goals for retirement as we put together a plan tailored specifically for your family. If you’re planning for retirement but still have questions, there’s no time like the present!

Contact us today to set up a no-obligation consultation to see how we can help you achieve your dream of a worry-free retirement. 

The 10 Best Beaches in the World

Have you been planning for retirement?

Are you ready to start thinking less about the financial side, and more about the adventurous side of retirement?

Does your retirement planning include talking to a travel agent?

You’ve worked hard to get to retirement, and deserve a nice getaway! According to the Huffington Post and TripAdvisor’s annual “Traveler’s Choice Awards” for best beaches in the word for 2018, here’s where you should consider going:

1)    Grace Bay – Providenciales, Turks and Caicos
2)    Baia do Sancho – Fernando de Noronha, Brazil
3)    Varadero Beach – Cuba
4)    Eagle Beach – Aruba
5)    Seven Mile Beach – Cayman Islands
6)    La Concha Beach – Donostia, Spain
7)    Clearwater Beach – Florida
8)    Seven Mile Beach – Negril, Jamaica
9)    Bavaro Beach – Dominican Republic
10)     Playa Norte – Isla Mujeres, Mexico

Are you ready to pack a suitcase and hit the beach? We want to help make your dream a reality!
Whether your ideal retirement is a life of leisure on the beach, or staying home with the grandkids, we want to help you get there. Our firm specializes in using a client-centered approach built on your personal and family goals.

Give us a call today if you’re ready to take the next step in your retirement planning!

8 Things to Do During Your First 30 Days of Retirement

Have you been talking to a retirement planner about your future?

Have you already been thinking about where you’ll travel, what sights you’d like to see, and how you’re going to fill your days when you’re no longer going to the office every day?

Many people have a good idea of what to do leading up to retirement, but what happens when you officially retire? Check out these things you should consider doing during your first 30 days of retirement:

1. Celebrate! You’ve waited a long time and worked really hard to get to this point in life. Take a moment to celebrate it! Buy a nice bottle of wine, go out to eat at that upscale restaurant you’ve always wanted to try, or take a weekend trip.
2. Set a few parameters. Make sure you and your partner talk about your initial plans for retirement, especially if those plans include downsizing, moving, or some other big life change.
3. Try to avoid being a couch potato. During the first few days of retirement it can be tempting to spend all your time lounging now that you’re able to, but remember, staying active plays a big role in staying mentally sharp during retirement! Instead, spend time reading books, visiting friends, and experiencing events.
4. Make concrete plans with friends. According to Forbes, “In retirement having strong relationships and an active social life is one of the most crucial elements in making a successful transition.” Get out your calendar and mark specific dates and times.
5. Start journaling. One of the easiest ways to enhance your memory during retirement is to write things down. Start to keep a journal about your thoughts, feelings and activities.
6. Address stress. To have the best retirement possible, decrease the amount of stress you have by putting yourself in situations with people that won’t make you worry about gossip, money worries, and other stressful topics.
7. Be physically active! While retirement can offer you the time to finally start exercising, it doesn’t automatically include motivation and energy. During the first 30 days of your retirement, develop a routine, and try something new, like yoga or kickboxing!
8. Go on a health shopping spree. If you have a Flexible Spending Account or Health Savings Account for health insurance, be sure to spend all available dollars in those accounts if they expire when you terminate your employment, or at the end of the year.

When you reach retirement, the possibilities are endless! You’ve worked hard to be able to have a worry-free retirement, and we want to help! At Imber Wealth Advisors, we can help you with retirement planning, estate planning, investments, and more. Contact us today!

Don’t Waste Time! 5 Facts to Help You Reach Retirement

Are you beginning to think seriously about retirement?

Have you talked to a financial planner, or are you still looking for advisors you can trust with your future?

If you’re planning for retirement but are still in the fact-gathering phase, consider these five financial facts from Time Magazine:

1. Saving is a surer way to wealth than investing. According to Time, “investing is important, but all the investing skill in the world doesn’t amount to much unless you regularly set aside savings that you can invest.” While saving and investing are both required for building wealth, saving is the more reliable of the two.
   
   
2. Higher returns always involve higher risks. When the financial markets aren’t delivering the gains you’d like, it can be very tempting to go out and hunt for investments that can do better. “Any time you’re tempted to stretch for a higher return or fatter yield, remember: The investing world offers no free lunches. One way or another, higher returns always come with greater risk, even if that risk isn’t always apparent,” says Time.
   
   
3. Simple is better than complex. The more complicated your investing strategy is, the harder it is to manage your portfolio and the more things that can go wrong. A streamlined approach has a much greater chance of success.
   
   
4. Overconfidence is your worst enemy. It’s okay to admit you don’t know as much as you think you do about investing! Talking to a financial advisor before making big decisions regarding your portfolio is encouraged rather than making quick, overconfident decisions.
   
   
5. At the end of the day, the onus is on you to make good financial decisions. According to Time, “At some point, most or all of us rely on some source outside ourselves for financial guidance, whether it’s a financial advisor, a friend or relative whose opinion we value or a publication or website we trust.” While that’s fine, and natural, a second opinion or sounding board should still be backed up with good research and financial knowledge.

Still not sure what the right financial moves are? Talk to a trusted financial advisor in Ann Arbor! At Imber Wealth Advisors, our sole focus is you, your family, and your dreams for the future. We’ll help you put together a plan, and will sit down with you whenever you have questions or concerns. Give us call and visit our website today for more information!