You've worked hard to create a life and lifestyle you can be proud of. It only makes sense for you to take the necessary steps to secure your future. And the experts at MB Group can help. We're a team of Certified Public Accountants (CPAs) who offer exclusive experience helping high net worth individuals plan for a successful retirement.
We understand there are no one-size-fits-all solutions when it comes to high net worth retirement planning. As a result, we take a high-touch, tailored approach to helping you achieve your goals. Let's take a closer look at the key areas we focus on when we engage in high net worth retirement planning.
Develop Targeted Strategies
One of the first things you should understand about high net worth retirement planning is traditional strategies do not work. In addition to IRAs, 401(k)s, and Roth IRAs, high net worth individuals should consider alternative investment products to realize additional benefits including:
- Tax-Free Withdrawals. Many alternative investment strategies can offer tax-free withdrawals and tax-free growth. By working with an experienced high net worth retirement planning specialist and paying taxes upfront, you could enjoy tax-free growth and withdrawals. The net result could be multiple hundreds of thousands of dollars more.
- Stop Loss Guarantees. Stop-loss guarantees ensure your portfolio will always close at a preset level to protect your portfolio from sustaining losses outside of what you're willing to tolerate.
- Enjoy Ample Flexibility. It's best to use specific strategies that will allow you to have more flexibility about when and how you withdraw money. For example, certain products allow you to access funds before 59.5 without a penalty, allow you to use the funds to pay for education, and have no withdrawal requirement at age 70.5.
Partner with a Financial Professional with Wealth Management Experience
As someone with a high net worth, you must have control over where and how your money is invested. While most people can choose virtually any financial advisor to provide this guidance, you're in a slightly different scenario. It's best for you to partner with a financial advisor, CPA, and other financial intermediaries who have experience working with others in your tax bracket.
In doing so, you'll be able to use decades of wisdom and learning to your advantage. By partnering with a qualified financial planner with investment management experience, you'll confidently know your assets are actively working toward your long term goals.
Carefully Plan for the Future
Today, people are living longer than ever. Yet, the majority of people are not ready to live longer and are not planning on it. One of the most common mistakes made by people with high net worth is underestimating their longevity. If you're building your retirement to the age of 85, but you live longer; you could have a significant shortfall.
For this reason, many high net worth individuals work with experienced financial planners to implement different lifetime income annuities you can't outlive. This strategy offers you a guaranteed stream of income — regardless of how the market performs — and unparalleled peace of mind. This way, you can enjoy the same standard of living you've become accustomed to without worrying about outliving your savings.
Don't Forget Taxes
Although taxes are important for any income bracket, they are exponentially more important for people with substantial wealth. For instance, many retirees are surprised when their tax bill increases after they've turned 70.5 and began taking withdrawals. This increase is due to the withdrawals being taxed at the highest tax bracket.
While 401(k)s and IRAs may allow you to reduce your tax liability as you grow your funds, it can cost you severely in the end when you withdraw. Instead, through tax planning, it's best to utilize more tax-efficient vehicles like Roth 401(k)s, Roth IRAs, and Insurance products that allow you to access a reliable stream of tax-free income at retirement.
Contact MB Group for High Net Worth Retirement Planning
When it comes to planning for retirement and your future, you're not alone. You have access to decades of experience and expertise at MB Group. Contact us today to schedule a consultation.