It is advisable to start planning for retirement as early as possible. The earlier you start, the more time your investments have to grow through compounding. Ideally, planning should begin in your late 30s, but it's never too late to start.

The amount you need to save depends on various factors such as your desired retirement lifestyle, expected lifespan, inflation rates, and potential healthcare costs. A financial advisor can help you calculate a personalized savings goal. Please contact our advisor for a detailed estimate.

Tax-efficient retirement strategies aim to minimize the amount of taxes paid on retirement savings and income. Examples include contributing to tax-advantaged accounts like IRAs or 401(k)s, strategically timing withdrawals, and diversifying investments across taxable and tax-deferred accounts.

Social Security benefits can supplement retirement income. Understanding when to start claiming benefits and how much you can expect to receive is crucial in your retirement planning strategy. Factors like your age at claiming and your work history affect the amount you receive.

Defined benefit plans, such as pensions, provide a specific monthly benefit at retirement based on salary and years of service. Defined contribution plans, like 401(k)s, depend on contributions made by you and your employer, with benefits determined by investment performance.

Regular review of your retirement plan is essential to ensure it stays aligned with your goals and adjusts to any changes in your financial situation or life circumstances. Typically, it's recommended to review your plan annually or whenever there are significant life events, such as job changes or market shifts.

RMDs are mandatory withdrawals from certain retirement accounts (like Traditional IRAs and 401(k) plans) starting at age 72 (as of 2023, previously age 70½). The amount is calculated based on your life expectancy and account balance.

Contributions to a Traditional IRA may be tax-deductible (depending on income and participation in employer-sponsored plans), and taxes are deferred until withdrawals are made. Roth IRAs, on the other hand, are funded with after-tax dollars, and qualified withdrawals (including earnings) are tax-free in retirement.

Early withdrawals (before age 59½) from retirement accounts like IRAs and 401(k)s may incur a 10% penalty in addition to income taxes, unless an exception applies (such as certain medical expenses, first-time home purchases, or qualified education expenses).

Medicare is a federal health insurance program primarily for people aged 65 and older, as well as certain younger individuals with disabilities. It consists of different parts (A, B, C, and D) covering hospital services, medical insurance, and prescription drugs. Understanding enrollment periods and coverage options is crucial for retirement planning.