Did you miss the recent Forbes article by President of CKS Summit Group, Al Caiceido? Here’s another chance to catch The Three Stages Of Baby Boomers.

Retirement planning is often full of challenges and uncertainties. You may be asking yourself, “How much money will I need? How long will my money last? When should I stop working? When should I start taking Social Security? Are my current allocations in line to provide me the income I need in retirement? How will I take care of aging parents? Is my portfolio ready to satisfy required minimum distributions at age 70 ½? Am I risking too much?” The questions go on and on, and the current overhaul of tax laws is making things even more challenging. Whether you are an early boomer, a middle boomer, or a late boomer, here are some concepts for you to consider while navigating to and through retirement.

Early Boomers (Born 1946-1950)

There is a high probability that you are retired or very close to retirement. Things to think about include:

1. Understanding the possible ramifications of working during retirement. Working in retirement can keep you active and supplement income, but it could also increase taxes on income and Social Security.
2. Being prepared for required minimum distributions (RMDs) in the year you turn 70 ½. Failing to take RMDs is one of the biggest mistakes IRA owners can make. Even worse, it carries the highest penalty: 50% on undistributed assets. If you are not sure about regulations and which tables to use, seek guidance from an advisor.
3. Simplifying your finances. Consider consolidating your accounts to allow for better coordination of withdrawals. If you are married, it can also make things easier for your spouse to understand and manage.
4. Getting your estate in order. Make sure you review your estate plan, including your will, trust, power of attorney, trustees, and executors. Working with your attorney in conjunction with your advisor can make this process easier.

Middle Boomers (Born 1951-1958)

Your retirement is very close or just a few years away. You might even have opted for early retirement. Here are some things to think about:

1. Educating yourself or getting advice on proper Social Security planning. There are over 500 ways for a couple to calculate Social Security, and making the wrong decision could cost you thousands of dollars in lost benefits. Seeking out an advisor who has a thorough understanding of this subject can greatly enhance your benefits.
2. Understanding tax diversification. We all think about simplifying our assets, but how often do we think of simplifying our taxes? Transitioning your assets to reliable, tax-efficient retirement income might be more important than picking the right stock or bond.
3. Resetting your risk levels. The closer you get to retirement (or in the early years of your retirement), risk management becomes more important. Remember, time was your ally in your working years; now, time can become your enemy if your portfolio takes a significant hit early in retirement.
4. Focusing on income. Here is the basic formula for total return: TR=G+I (Growth & Income). Most investors believe the only way to boost returns is to invest for growth. The problem with their thinking is the G (Growth) sometimes becomes an L (Loss). As you get closer to your retirement age, losses can require you to possibly adjust the age at which you want to retire. Thinking about the I (Income) can reduce risk levels while possibly providing you with a steady income flow. Remember: Retirement is all about maintaining lifestyle.

Late Boomers (Born 1959-1964)

You should be well into retirement planning; however, retirement is still several years down the road. Here are some things to keep in mind:

1. Evaluating your current asset position. It’s time for you to start taking a serious look at your total asset base and see if your target aligns with the lifestyle you want to live in retirement. Doing this will help you decide whether or not you need to boost your savings.
2. Taking care of your parents. At this stage of life, some of us might be in the position of taking care of elderly parents. This situation can become a financial burden on you as the caregiving child or children, especially if you are also taking care of your own children. Make sure you have a handle on your parents’ finances.  Help your parents claim the benefits they are entitled to. Seek support, and don’t forget about respite.
3. Should you continue to max out your tax-deferred retirement plans or build up more after-tax savings? We have all been programmed to sock away money into our retirement program, but most have never thought of the potential tax tsunami that’s to come, especially with the debt this country is carrying. Take action:  Start mitigating future taxation on your retirement income while enhancing your overall income position when you retire. Seek out an advisor who focuses on tax management and minimization strategies.
4. Taking time to really picture how you want your retirement life to look. Write down your vision and idea of your perfect retirement. Where will you be? Where will you travel? What will you do to make yourself smile?

Throughout the Boomer Retirement Cycle, the different stages require unique strategies and approaches. Your ability to navigate these three stages will go a long way in determining if you will be able to live the type of retirement you envisioned prior to retiring. Taking control of your learning and seeking out the right advice will only enhance the possibility of living out your goals and dreams in retirement. Dare to think different. Dare to dream big. Dare to live the retirement life you worked so hard for.

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Remember: Retirement is meant to be enjoyed!

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