The Retirement Game of Chess

Retirement planning is like a game of chess. Think of a married couple as the king and queen, while their assets are chess pieces on the board, and their liabilities are the opposing chess pieces.

Chess is a game that you play to win. There are many pieces on the board to move to protect the king and queen. In a game, you think logically when deciding each move because each move matters in reaching your objective. Managing the pieces on the board, like your assets, is crucial to be able to live the lifestyle you want for retirement.

Kevin Duffy, Certified Financial Planner, will help you create a strategy to win the game and live the lifestyle you choose.

There are several things one needs to consider when planning for retirement as there are many moving pieces. Retirement planning begins with creating a budget to live the lifestyle you choose. Then, consider how your assets fit into your lifestyle and how best to utilize liabilities.

On your side of the chess board are interest, dividends, capital gains, stock portfolio, CD’s, pension, social security, personal residence, investment property, IRA’s, 401k and anything bringing you income. This also includes your will, health care proxy and power of attorney.

On the opposite side of the board are your monthly expenses, mortgage payment or rent, real estate taxes, car insurance, health insurance, vacations, income taxes, estate taxes and any expenses.

Decisions on when to take social security need to be made and what options are available to you if you have a pension. Beginning in 2023, the SECURE 2.0 Act raised the age that you must begin taking RMDs to age 73. If you reach age 72 in 2023, the required beginning date for your first RMD is April 1, 2025, for 2024. Maintaining health insurance and revising your wills are also included in your plan.

Retirement is a big life changing event and can bring a range of emotions. Knowing you have a plan in place to care for yourself and loved ones can make the transition go smoothly so you can enjoy retirement.

Every move you make could impact your income taxes and /or monthly budget. The decision to take social security early at age 62, or waiting until full retirement age, makes a difference in personal income.

In our free consultation, I will breakdown your options and shift the focus away from deciding with emotions and guide you to think logically about your retirement plan. My goal is to assist you in each move to maximize the value of your assets.