FINANCIALLY FOCUSED

July 2025 Newsletter

AGE-PROOF YOUR RETIREMENT PLAN

One of the cornerstones of retirement planning is preparing for longevity risk, which is simply the possibility of outliving your retirement savings. As life expectancies increase, retirees could face extended periods of financial need, making it crucial to implement strategies that ensure financial stability throughout retirement.

UNDERSTANDING LONGEVITY RISK

Living longer can strain retirement resources because of inflation, rising healthcare costs, and market volatility. For instance, the median cost of a private room in a nursing home is currently more than $10,000 a month and rising.

And relying solely on traditional withdrawal strategies, like the 4% rule, may not be enough for long retirements.

STRATEGIES TO MITIGATE LONGEVITY RISK 

• Tax-efficient withdrawals: Developing a withdrawal strategy that considers tax implications can help preserve your nest egg. Instead of sticking to a fixed percentage, tailor withdrawals based on spending needs and account types.
• Diversify income streams: Incorporate stable income sources like annuities, to supplement Social Security. These may provide steady income regardless of market conditions.
• Prepare for healthcare costs: Establish Health Savings Accounts (HSAs) and consider long-term care insurance and other potential options for reducing that financial burden in later years.
• Regular reviews: Consistently monitor your retirement plan and adjust it for changes in expenses, market conditions, and personal circumstances.

By proactively addressing these areas, retirees can improve their financial resilience and make it more likely their savings lasts.

KEY TAKEAWAYS

1. Plan for longevity and rising costs: With people living longer than ever, retirement plans must account for more years, increasing healthcare expenses, and inflation. Failing to prepare for these factors can significantly erode savings over time.
2. Build multiple income streams: Relying solely on Social Security or traditional withdrawal strategies like the 4% rule may not be enough. Incorporating stable income sources like annuities and using tax-efficient withdrawal methods may help your money last longer.
3. Stay flexible and review regularly: A retirement plan isn’t “set it and forget it.” Regularly reassessing your strategy, especially with a financial services professional, can help your plan adapt to market shifts, healthcare needs, and lifestyle changes.

SOURCE

https://www.kiplinger.com/retirement/how-to-age-proof-your-retirement-plan

WHAT WE’RE READING

Here are some recent financial news stories that we found particularly compelling and useful.

• A Sherwood article, As goes Tesla, so goes the US stock market, that details how Tesla’s stock performance correlates with the overall market.
• A piece from AARP, 8 Ways to Keep From Going Broke in Retirement, that provides some quick and meaningful tips.
• Thinking about a long-term retirement adventure? Then you won’t want to miss the Investopedia article, Want To Retire in Another Country? Here’s What To Know About Retirement Visas.
• If you’re looking to build up your credit (which is always a good idea) check out this Nerdwallet article, How to Build Credit Fast: 9 Strategies to Try.

Thanks for reading and we hope you’ll have plenty of time to get out and enjoy the summertime sunshine!

HOT DIGGITY DOG

Few things scream 4th of July like a good ol’ Hot Dog Eating Contest. Currently Joey Chestnut holds the record for eating the most hot dogs in 10 minutes – an astounding 83 dogs. On average Americans eat about 150 million hot dogs on July 4th alone.

SOURCES

https://www.npr.org/2024/09/03/nx-s1-5098967

https://www.hot-dog.org/media/consumption-stats

GRILLED ROMAINE SALAD

This perfect grill romaine salad is loaded with the classics: juicy tomatoes, chives and toasty breadcrumbs. You get a bite of everything! Plus, smoky, charred romaine lettuce topped with crunchy bacon, blue cheese and ranch? Yes, please!

Get Cooking!

Advisory services are offered through Gateway Financial & Estate Planning, Inc., a Registered Investment Advisor in the State of Idaho. Insurance products and services are offered through Gateway Insurance Services, Inc., an affiliated company. Gateway Financial & Estate Planning, Inc.and Gateway Insurance Services, Inc.are not affiliated with or endorsed by the Social Security Administration or any government agency.

All written content is for information purposes only. It is not intended to provide any tax or legal advice or provide the basis for any financial decisions. The information contained herein is not an offer to sell or a solicitation of an offer to buy the securities, products or services mentioned, and no offers or sales will be made in jurisdictions in which the offer or sale of these securities, products or services is not qualified or otherwise exempt from regulation. The information contained in this material have been derived from sources believed to be reliable, but is not guaranteed as to accuracy and completeness and does not purport to be a complete analysis of the materials discussed.