Page 6 - Hobe Sound Reflections - July '23

Page 6, Hobe Sound

FInanCIal FoCus ®

Biggest Threats To A of your portfolio and the amount of income you receive maximize the benefits from Medicare or your Medicare
Comfortable Retirement? from other sources, such as Social Security. A financial Advantage plan. Also, if you contributed to a Health
Savings Account (HSA) while you were working, and you
professional can help you determine a withdrawal rate
that’s appropriate for your needs. haven’t depleted it, you can use the money in retirement.
By Sally Sima Stahl • Market volatility – The financial markets will always As long as the HSA funds are used for qualified medical
If you save and invest fluctuate. When you’re still working, this volatility may expenses, withdrawals are tax- and penalty-free, and
for decades, you’d like not be such a problem, as you have years or decades to won’t be included in your income. This could help
to know you can retire recover from short-term downturns. But when you retire, keep your income below certain levels, lower your
without financial worries. you don’t want to have to sell investments when their Medicare premiums or avoid the 3.8 percent surtax on
Nonetheless, you still have price is down. To help prevent this, you can tap into the net investment income that can be assessed on high-net-
to be aware of some threats cash in your portfolio, assuming you have enough to cover worth taxpayers.
to a comfortable retirement several months’ worth of living expenses. You could also Retirement can be a pleasant time in your life — and
— and how to respond to draw on a CD “ladder” — a group of CDs that mature at you’ll enjoy it more if you’re prepared for the challenges
them. different times — to provide you with resources for the that face all retirees.
These threats include: next few years and allow your equity investments time This article was written by Edward Jones for use by
• Inflation – Inflation to recover their value. your local Edward Jones Financial Advisor, Edward
has been high recently, but even a mild inflation rate can • Unexpected costs – You had them when you were Jones, Member SIPC.
seriously erode your purchasing power. In fact, with just working, and you’ll probably have them when you’re Edward Jones is a licensed insurance producer in
a 3 percent inflation rate, your expenses could double in retired: the furnace that breaks down, the car that needs all states and Washington, D.C., through Edward D.
about 25 years — and your retirement could easily last a major repair, and so on. But if you’ve established an Jones & Co., L.P., and in California, New Mexico and
that long. So, if you’re going to rely on your investment emergency fund containing a year’s worth of living Massachusetts through Edward Jones Insurance Agency
portfolio for a sizable part of your retirement income, you expenses, with the money kept in a liquid account, you of California, L.L.C.; Edward Jones Insurance Agency
will need to own a reasonable number of growth-oriented may be able to “ride out” these costs without jeopardizing of New Mexico, L.L.C.; and Edward Jones Insurance
investments, such as stocks or stock-based funds, whose your investment portfolio. Be sure to keep these reserves Agency of Massachusetts, L.L.C.
potential returns can equal or exceed the inflation rate. separate from your typical day-to-day accounts to avoid Edward Jones, its employees and financial advisors
• Excessive withdrawals – Once you retire, you the temptation of spending your emergency money. cannot provide tax advice. You should consult your
should establish a withdrawal rate for your portfolio — an • Health – Retirees may face more health concerns qualified tax advisor regarding your situation.
amount you can take out each year and still feel secure than younger people, and those concerns often come Contact us at (561) 748-7600, Sally Sima Stahl, AAMS,
that you won’t run out of money. Some people make with larger medical bills. That’s why it’s important to 1851 W. Indiantown Road, Ste. 106, Jupiter, FL 33458.
the mistake of withdrawing too much, too soon, once
they’re retired. Your withdrawal rate should be based on
several factors, including your age at retirement, the size

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