Retirement planning is much more than just setting aside money in a savings account or contributing to a 401(k). To help ensure a comfortable and preserve retirement, it’s essential to adopt a comprehensive, strategic approach that accounts for multiple aspects of your financial and personal life. At McIntosh & Associates, we call this the FOCUS Process, which stands for Future Income Planning, Optimizing Investments, Comprehensive Tax Strategies, Understanding Health Care, and Strategic Legacy Planning. In this blog, we’ll break down each component of the FOCUS process and explain how it helps our clients achieve financial clarity.

1. Future Income Planning

One of the most important aspects of retirement planning is ensuring that you have enough income to last throughout your retirement years. In fact, 75% of Americans are worried about outliving their savings, according to a recent study by the Employee Benefit Research Institute (EBRI) . This is where Future Income Planning comes into play.
With future income planning, we help you understand:

• Your guaranteed sources of income, such as Social Security and pensions.
• Ways to generate additional income through investments and annuities.
• Creating a withdrawal strategy that optimizes your savings while helping minimize the risk of running out of money.

A strong future income plan that helps ensure that you’re able to maintain your lifestyle without fear of running out of funds.

2. Optimizing Investments

Your investment strategy should evolve as you transition into retirement. In the FOCUS process, Optimizing Investments means balancing risk and return to ensure that your portfolio aligns with your retirement goals. We typically recommend a diversified portfolio that includes a mix of stocks, bonds, and alternative investments.
Key considerations include:

• Reducing risk as you age to preserve your savings from market volatility.
• Keeping a portion of your portfolio in growth assets to combat inflation.
• Rebalancing regularly to stay aligned with your risk tolerance and goals.

By optimizing investments, we help you get the most out of your savings while preserving your retirement nest egg.

3. Comprehensive Tax Strategies

Taxes don’t go away when you retire – they can actually become more complex. Comprehensive Tax Strategies are designed to help minimize your tax liability and help you keep more of what you’ve earned.
Some strategies we employ include:

• Timing your withdrawals from tax-deferred accounts like 401(k)s or IRAs to help reduce your tax bill.
• Using tax-efficient accounts such as Roth IRAs.
• Planning for required minimum distributions (RMDs) to help avoid hefty penalties.

With rising taxes being a major concern for retirees, it’s important to develop a strategy that keeps your tax burden as low as possible while adhering to current regulations.

4. Understanding Health Care

Health care costs can easily become one of your largest expenses in retirement, with many retirees spending an average of $315,000 on health care during their retirement years . The FOCUS process emphasizes Understanding Health Care by planning for both expected and unexpected medical expenses.
We help you:

• Estimate future health care costs, including long-term care needs.
• Explore insurance options, including Medicare and supplemental plans.
• Review your current coverage to ensure it’s optimized for your health needs.

By planning for health care costs now, you can avoid unexpected expenses that could derail your retirement.

5. Strategic Legacy Planning

Finally, retirement isn’t just about spending your savings; it’s also about leaving a lasting legacy. Strategic Legacy Planning ensures that your assets are distributed according to your wishes and that your loved ones are cared for.
This includes:

• Creating or updating wills and trusts.
• Planning for the tax-efficient transfer of wealth.
• Incorporating charitable giving if it aligns with your values.

Legacy planning helps you leave behind more than just money – it ensures that your family and your values are protected for generations to come.

---

Resources:

• Social Security Administration: Tools and calculators to help estimate your Social Security benefits: www.ssa.gov
• IRS Retirement Plans FAQs: Learn more about tax considerations in retirement: www.irs.gov
• Medicare.gov: A resource for understanding Medicare coverage options: www.medicare.gov

With the FOCUS Process, we aim to provide clarity and confidence in your retirement journey. If you’re ready to take the next step, we’re here to help guide you every step of the way.

Insurance products are offered through the insurance business McIntosh & Associates, Inc.. McIntosh & Associates, Inc. is also an Investment Advisory practice that offers products and services through AE Wealth Management, LLC (AEWM), a Registered Investment Adviser. AEWM does not offer insurance products. The insurance products offered by McIntosh & Associates, Inc. are not subject to Investment Adviser requirements. Investing involves risk, including the potential loss of principal. Neither the firm nor its agents or representatives may give tax or legal advice. Individuals should consult with a qualified professional for guidance before making any purchasing decisions. 2630699 10/24