A fresh approach for the new age of retirement planning

Integrated retirement planning services to prepare for the life you want to lead.

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Retirement plans are just the beginning

Preparing for the future means building momentum toward whatever you want to pursue. Your retirement years bring the promise of realizing the goals you worked so hard to reach, but they also come with a host of questions. And your 401k is only one piece of the retirement planning puzzle. Start with a partner who knows how wealth planning works and can guide your momentum so you can transition confidently into retirement.

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THIS IS WHAT GUIDES US

  1. A core belief that everyone deserves to move their financial life forward
  2. Independent, fiduciary investment advice that always puts your best interests first
  3. Partnership for life with a financial planner who can create and revise your plan as your retirement goals evolve
  4. An integrated approach that considers far more than just what's needed for retirement savings
  5. The investment philosophy of our Nobel Prize-winning co-founder, Dr. William F. Sharpe
  6. Wealth management that seeks to balance maximizing returns, structuring for tax-efficiency and mitigating risk

SOPHISTICATED SUPPORT FOR A DYNAMIC RETIREMENT LANDSCAPE

Our planners assess a broad spectrum of your financial life that impacts your retirement planning, not just your investment strategy. They can tap into a wealth of tools and expert resources, reviewing your assets, income and other savings to help guide you toward your desired retirement and financial future.

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An integrated approach to wealth management

To help maximize your wealth, your financial life – investment strategy, taxes, insurance, retirement and estate planning – must be wired together in a holistic approach. Your dedicated financial planner can coordinate with a team of experts to connect those different pieces into a cohesive view so you can unlock new ways to help build, grow, protect and preserve your wealth.

 

Certain services provided on an educational and guidance basis only.

THE VALUE OF MEETING WITH A FINANCIAL ADVISOR

We're uniquely focused on modeling both the risk and return potential of each piece of your financial plan -- we know this takes more than a presumptive, one-size-fits-all approach. We start by evaluating your entire picture, looking for opportunities to adjust and rebalance based on your retirement goals. 

RETIREMENT PLANNING FREQUENTLY ASKED QUESTIONS

To learn more about retirement planning and how the Edelman Financial Engines team can help you meet your goals, review some of our most frequently asked questions.
 

A retirement plan can help enable you to confidently transition into retirement, providing you with the income you need to maintain the lifestyle of your choice. Most Americans worry about outliving their retirement savings. In fact, according to a recent study by Allianz Life, 61% of Americans say they are more afraid of running out of money than they are of death. No one wants to be in this situation, but it can happen if you don’t have a plan. Edelman Financial Engines provides personalized retirement planning strategies that can help tap into your financial potential and strive to meet your retirement goals. 

You should begin your retirement planning as early as possible, starting with your first paycheck. The earlier you begin saving, the more time your money has the opportunity to grow. If you haven’t started planning for retirement savings yet, now is the time to take the first steps.

Retirement planning can look very different from person to person. One of the best ways to plan for retirement savings is to consult a financial planner who can guide you through the many questions and options you’ll need to consider. Retirement planning should include determining timing, estimating expenses, assessing your risk tolerance, identifying investment vehicles, planning for potential tax implications and thinking about estate planning.

How much money you need to retire will vary depending on your own personal lifestyle, assets, financial situation and retirement goals. A common suggestion is to have 10-12 times your annual income at retirement age. But there are several factors that may impact that number, from the expenses you’ll have during retirement, to health care costs and even whether you may be planning to move to another state where the taxes may differ. Your portfolio balance and the monthly retirement income that you’ll draw should be determined after considering all these factors as part of an integrated retirement plan.

As you near retirement, a financial planner can help you prepare for a systematic withdrawal plan. After building a diversified portfolio, you’ll simply withdraw money each month. Ideally, the annualized rate is 4% of the portfolio or less – the more you withdraw, the higher the risk that you’ll begin to erode principal if investment markets decline in value. But as you get older, you may explore the possibility of a higher withdrawal rate. For example, a 75-year-old could consider a 5% withdrawal rate.

We expect Social Security will continue to exist in some form in the foreseeable future, but it alone is unlikely to provide clients with a comfortable retirement. As such, unless there are other factors to consider, we recommend clients continue to work full time to at least their full retirement age and take Social Security no earlier than their FRA. In many cases, waiting longer can be even more beneficial. However, there are several other considerations that could affect your individual Social Security decision, so consulting with a financial planner is a good way to review and weigh your options.

Although setting retirement goals can be a time-consuming step, developing a strategy to fund your retirement is even more challenging due to the number of variables involved. For example, you’ll need to estimate the proper timing and size of your withdrawals, likely from numerous accounts, which will be impacted by unpredictable market conditions over decades. Fortunately, there are planning and retirement income strategies that can help you feel more confident.

There are many risks to your retirement, including high inflation, market volatility, unexpected health care and other costs, longevity and taxes. Your retirement plan needs to have a cushion and the flexibility to adjust as these variables and your situation change.

One of the biggest expenses during retirement is health care. In 2022, the average total health care cost in retirement for a 65-year-old couple was $315,000. But if you only plan for the average, what happens if your costs are more? Your plan needs to have a cushion and the flexibility to adjust as your situation changes.

Your retirement income is likely to come from a variety of sources. Some are fixed sources, which provide a predictable amount of funds each year. Social Security is the most common example, but employer pensions and annuities are two other income sources that can fund your retirement through regular, predictable payments. It’s important to take the tax and distribution rules for all these sources into account as you establish your retirement income plan. Some sources are better to tap into right away, while you should avoid taking withdrawals from others for as long as possible. As with most financial decisions, what you do should be based on your specific situation, and an Edelman Financial Engines planner can help guide you.

There are strategies you can implement to help reduce your potential tax burden, such as making withdrawals from tax-deferred accounts before you reach the age at which you must begin Required Minimum Distributions, using Roth conversions, or making qualified charitable donations directly from your IRA. But determining the best approach for you can be complex. When you develop a retirement income plan with an Edelman Financial Engines planner, we encourage you to work with your Certified Public Accountant to help develop a tax-efficient income strategy.

This may surprise you, but typically the answer to this question is no, in most situations. When it comes to your retirement, it’s all about wealth creation, not debt elimination. So while paying off your mortgage early may seem appealing, we believe your focus should be on creating wealth so that you can comfortably afford the cost of living in and owning your home. There are a number of factors that may impact this decision, however, so you should weigh your options with a financial planner to determine what makes the most sense for your situation.

Working with an Edelman Financial Engines planner who understands your goals and unique circumstances is key to helping you build, grow, protect and preserve your wealth both before and during retirement. We help connect the dots between key parts of your financial life so you can see what may be missing, make an effort to fill in the gaps and trust in a retirement vision that can be integrated into a financial plan built for your goals.

RETIREMENT RESOURCES

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    How to Customize Your Retirement Plan Using the 4% Rule

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