Imagine celebrating your 100th birthday surrounded by generations of family and friends. Once a rarity, reaching age 100 or beyond is becoming increasingly common, reshaping our perspectives on aging and retirement planning. As life expectancy continues to rise, proactive and thorough financial planning becomes more essential than ever.

Recent studies highlight an undeniable trend: more people are reaching age 100 than at any previous point in human history. According to research from the United Nations, the global population of centenarians is projected to reach approximately 3.7 million by 2050, up from about 593,000 in 2021. In the United States alone, the U.S. Census Bureau reports the number of centenarians grew by 50% between 2000 and 2014, and it's expected to increase eightfold by 2050.

Furthermore, a report by the Stanford Center on Longevity points out that today's children have more than a 50% chance of living beyond 100, drastically altering traditional views of retirement and financial security.

While strong employment and steady payroll taxes have temporarily bolstered the program's outlook, the long-term viability remains uncertain. A large part of the issue is that the population is aging, meaning the percentage of the population aged 65 and older is climbing. That means there is a lower number of workers per retiree paying taxes. That combined with a falling birthrate results in less money going into Social Security and the Social Security trust fund over time. Despite widespread apprehensions about the program's solvency, it is essential to dispel misconceptions about Social Security going "broke." Instead, the primary concern right now lies in the potential insolvency of the trust fund that pays a portion of Social Security benefits.

If Congress fails to act by 2033, the retirement trust fund will exhaust its reserves, leading to a shortfall in benefit payments. That will result in a 21% reduction in Social Security benefits for retirees. That would be detrimental for most retirees. Although this year's report was an improvement over last year's report, which projected a 26% reduction in benefits, the trajectory has generally been downwards, and could move further downward as more retirees begin collecting their Social Security benefits, less workers enter the labor market behind them, and inflation remains high. There is a critical need for proactive measures to safeguard financial security. Despite the looming threat, experts remain cautiously optimistic that lawmakers will implement reforms to mitigate the crisis and sustain the program's essential functions, as some bills addressing the issue have begun to appear.

Despite prevailing concerns, there exists a compelling financial incentive to delay claiming Social Security benefits. By deferring benefits until reaching full retirement age or even until age 70, individuals can secure higher monthly payments, thereby maximizing their lifetime benefits. While the temptation to claim early may stem from immediate financial needs or apprehensions about the program's future, prudent planning dictates a strategic approach to optimize long-term financial outcomes.

For individuals facing financial constraints or seeking to optimize their retirement income streams, strategic planning based on the individual's unique situation can offer viable solutions. For example, for one retiree, withdrawing funds from tax-deferred retirement accounts before mandatory distributions kick in can help manage tax liabilities and bridge income gaps while allowing Social Security benefits to accrue. That may not work for another retiree, though. On the other hand, for those with limited life expectancies or specific medical conditions, early claiming may be a prudent choice, albeit one that requires careful consideration of individual circumstances. The key is for each individual to find the right strategy for claiming Social Security benefits for themself.

"Will I outlive my retirement money?" This is one of the top fears for people who are starting to prepare for their retirement years. Determining how much money you need in retirement shouldn't be a number that you pull out of thin air. It's a process that should include looking at your current financial situation and developing an approach based on your goals, time horizon, and risk tolerance. The process should take into consideration all your potential sources of retirement income and project what your income could look like each year in retirement.

The process should also consider possible factors that could affect your retirement. We all have our "blue sky" visions of the way retirement should be, yet our futures may unfold in ways we do not predict. So, as you think about your "second act," you may want to consider some life and financial factors that can suddenly arise.

This is only natural, as we all live in the present, but the future will arrive, and the future will be different than the present. The expenses you have now may not exist in retirement, and you may have new expenses in retirement that you don't experience now. The costs you have to shoulder later in retirement may exceed those at the start of retirement, especially when it comes to medical expenses and potential long-term care. As you may be retired for 20 or 30 years, or even more, it is wise to take a long-term view of things.

Medicare isn't available until you turn 65. If you retire before age 65, what do you do about health coverage? You may shoulder 100% of the cost. Suppose you become disabled or seriously ill, and working is out of the question. How will you cover those medical and other expenses and make ends meet?

You may stay fit, active, and mentally sharp for decades to come, but if you become mentally or physically infirm, you need to find people you can trust to manage your finances. The medical expenses can be high, as could the cost of a caretaker if one is needed. And if you're unable to make decisions for yourself, who will make those decisions for you?

As anyone who has ever lived alone realizes, a single person does not simply live on 50% of a couple's income. Keeping up a house or even a condo can be tough when you are elderly. Driving can also be a concern. If your spouse or partner is absent, will someone be available to help you in the future?

Unexpected issues and events that are always a possibility, but not front-of-mind, may quickly affect our money and quality of life. If you age with an awareness of them, you will be able to manage the outcome better.

As Social Security benefits rise about 8% for every year you delay receiving them until age 70, waiting a few years to apply for benefits can position you for higher retirement income. Filing for your monthly benefits before you reach Social Security's Full Retirement Age (FRA) can mean comparatively smaller monthly payments. Important factor when determining the optimal age to begin Social Security benefits include your life expectancy, other income you may be receiving, and your expenses.

Medicare will not pay for everything. Unless there's a change in how the program works, you may have a number of out-of-pocket costs, including dental and vision care. Options for covering these extra medical expenses including paying for them with money and investments or purchasing MediGap or Medicare Advantage coverage.

With advances in medicine, people can and do live longer than in the past. Actuaries at the Social Security Administration project that around a third of today's 65-year-olds will live to age 90, with about one in seven living 95 years or longer. The prospect of a 20- or 30-year retirement is not unreasonable, yet there is still a lingering cultural assumption that our retirements might duplicate the relatively brief ones of our parents.

You may have heard of the "4% rule," a guideline stating that you should take out only about 4% of your retirement savings annually in order to ensure you have enough assets to last through retirement. Recently, some experts have stated that number is now more like 3% or 3.5%. Whatever the right number is, some retirees try to abide by it, but others withdraw 7% or 8% per year. Why is this? In the first phase of retirement, people tend to live it up. You may have heard of the "go-go years" in early retirement. More free time naturally promotes new ventures and adventures and an inclination to live a bit more lavishly.

It can be a good idea to have both taxable and tax-advantaged accounts in retirement. Assuming your retirement will be long, you may want to assign this or that investment to specific expenses, which means the taxable or tax-advantaged account that is most appropriate as you pursue a better after-tax return for your entire portfolio.

Some find it harder to preserve (or accumulate) wealth when you are handing portions of it to creditors. Many people have 30-year mortgages, but there are also mortgages available for 40 years and even 50 years. It's important to plan ahead properly to know if you'll have debt in retirement, how much debt you'll have, or if there is a way to retire debt-free.

There is no financial aid program for retirement. There are no special retirement loans. Committing to pay for children's college education could make a significant impact on assets you'll have available at retirement. Parents do want to help their children pay for college, and that's great! However, it's important to consider the retirement impact and the various other options that are available, including grants and scholarships, as well as the possibility of your children paying for their own college education since they have their whole financial lives ahead of them.

Expect that retirement will have a few surprises; the absence of a strategy can leave you without guidance when those surprises happen.

These were just some of the important factors that can have a significant influence on the quality of retirement. Not paying attention to these factors and more would be a mistake. To help you avoid those mistakes, take some time to review and refine your retirement strategy. If you don't know where to begin, Strateon Intelligent Wealth has comprehensive financial planning for just that.

The economic impact of COVID-19 has been felt around the world. And, unfortunately for many pre-retirees, it could potentially impact your Social Security benefits as well. A new 2021 report indicates that the Old-Age, Survivors, and Disability Insurance (OASDI) trust fund that provides additional capital for funding Social Security benefits when there is a shortfall from taxation will be depleted in 2033, which suggests that Social Security benefits could be cut to 78 percent of promised benefits by 2034 if Congress takes no action to address funding.¹ While Social Security long-term funding has been a concern for awhile now, it appears that a snowball effect caused by the COVID-19 pandemic has shortened the timeline. COVID-19 served as the catalyst for an economic recession in early 2020, with a plunge in employment rates - meaning a drop in payroll taxes as well.

In December 2020, the average monthly benefit for a retired individual receiving Social Security was $1,544.² Even with benefits at full funding, you may not be able to meet your financial needs in retirement on Social Security alone. For those who have the opportunity to plan and prepare, Social Security doesn't have to be their only source of retirement income. There are a few options to consider when preparing to supplement the difference between what you earn in Social Security benefits and what you need to thrive in retirement.

There are two types of Individual Retirement Accounts, or IRAs, to choose from - traditional IRAs and Roth IRAs. If you’ve had these accounts set up for some time and made contributions regularly, then the potential growth of these accounts could make up for Social Security reductions. However, there are a few things about your IRAs to consider toward retirement.

Contributions you make to a traditional IRA may be fully or partially deductible, depending on your individual circumstances. In most cases, once you reach age 72 you must begin taking required minimum distributions from your IRA. Withdrawals from traditional IRAs are taxed as ordinary income and, if taken before age 59 1/2, may be subject to a 10 percent federal income tax penalty.³ You may continue to contribute to a traditional IRA past age 70 1/2 as long as you meet the earned-income requirement.⁴

Roth IRAs differ from traditional IRAs because contributions are made with after-tax dollars. This means that Roth IRA contributions do not lower your yearly taxable income, but withdrawals made in retirement are tax-free.

To qualify for the tax-free and penalty-free withdrawal of earnings, Roth IRA distributions must meet a five-year holding requirement and occur after age 59 1/2. Tax-free and penalty-free withdrawals also can be taken under certain other circumstances, such as a result of the owner’s death. The original Roth IRA owner is not required to take minimum annual withdrawals. Lastly, high-income taxpayers may have a lower contribution cap, or cannot contribute to a Roth IRA at all, depending on their yearly income and tax-filing status.⁵

If your employer offers a defined contribution plan, such as a 401(k), 403(b) or 457 plan, the accumulated income in these accounts could supplement Social Security, especially if this amount has had time to grow.

Be aware that distributions from a defined contribution plan are taxed as ordinary income unless they are Roth 401(k) or 403(b) accounts. Individuals are required to take minimum distributions at age 72, and any distributions before age 59 1/2 are subject to a 10 percent tax penalty.

Though not as common as they used to be, pensions are a common type of defined benefit plan. Benefits established by an employer take into account work history and salary to determine benefits.

Unfortunately for some retirees and pre-retirees, if Social Security does not help make ends meet, and the above options are not available or don’t provide enough benefits, then it may be time to consider postponing your retirement. The good news though, is that working while collecting Social Security could potentially increase your benefit amount.⁶

Having multiple sources of income in retirement is important. But if Social Security is your primary source of income, then a reduction in benefits will certainly be challenging. Using the list above, one can consider their options to prepare appropriately. To consult a financial advisor for more guidance and to receive an approach tailored to your financial situation...

Myths about working with a financial advisor abound, maybe you've even heard a few:

• "I don't need one"

• "They're for the wealthy"

• "There are lots of hidden fees"

The truth is that financial education around saving and investing money is for everyone. Even though everyone has different perceptions and expectations about a financial advisor’s purpose, the goal remains the same: getting your money to work for you.

The sooner you start, the better. Developing good financial habits now, helps to prevent major catastrophes later. Here are some myths about working with a financial planner and financial advisor that you may have heard or even thought yourself.

Your wealth isn't simply just the sum of the money you have in your checking account. When evaluating wealth, all of your assets are taken into consideration, and a better term to use is net worth.

The reality is, you can’t afford to be without one. A financial planner or advisor helps manage your finances, including student loans, credit cards, retirement savings or real estate investments, and works to put on a path to achieving goals, even those you haven't thought of or considered yet, and living comfortably during your retirement.

They don’t. They put you in a better position for making good financial decisions for short- and long-term planning. There is never a guarantee, and if anyone is telling you they'll get you something for sure, run as fast as you can.

Not true, although market predictions exist, no one knows for sure. Advisors can get you closer to your goal, but you need to understand the risks and measurements of time required.

Ask for complete details on all-in fees for each consultation or transaction. This is your money, your future — don’t be shy about it. Choose wisely and ask questions about the forms of payment. Strateon Intelligent Wealth, as a fee-only financial planning firm and registered investment advisor, has a very simple and transparent fee structure. Strateon Intelligent Wealth also focuses on providing lower cost investments for clients and any additional fees or expense ratios of any investments are always communicated to clients.

Everyone at some point needs professional help. There’s more to financial planning than making a deposit. It’s about knowing how to manage the funds for growth. Strateon Intelligent Wealth's focus is to help you achieve your goals as efficiently as possible while keeping costs to a minimum. You don't want all your positive returns to be eaten away by excessive fees in your accounts or high expenses ratios of your investments.

Not always true, a successful advisor succeeds when you reach your goal. Their goal is to educate you on the market choices and how to avoid a financial crisis. Strateon Intelligent Wealth exists to help people achieve their goals and have a prosperous future without worrying about money.

This is far from the truth, since most Americans hold assets that continue to outperform the stock market. Your home’s equity, retirement, or savings combined may exceed the average bank balance.

Individual planning is unique to your lifestyle and your situation could have complications. Good advice is not free.

Most of the time, accumulating wealth takes a long time and a lot of work. Working with a long-term financial planner provides a better chance of succeeding with a financially-planned future.

It’s never too late to manage finances, but it helps to start early. The earlier you start saving and investing, the less money you need to save and invest each year to achieve your future goals and accumulate enough wealth to live comfortably in retirement. The longer you wait, the more difficult it will be to achieve your goals.

Not necessarily. Focus on the things you can control and keep an eye on the long-term strategy. Strateon Intelligent Wealth focuses on long-term strategies so that if there is a downturn in the market, you'll have time for recovery.

True financial planning is about developing and building a comfortable long-term financial plan and involves a realistic investment goal. That's what Strateon Intelligent Wealth is all about.

Talk with an advisor and be honest about the budget. There may be a plan to get you started. Strateon Intelligent Wealth has no investment asset minimums and has multiple service tiers to fit different needs. Clients can even change service tiers as their needs change. If you have limited assets and a limited budget for financial planning, you can start with the Starter tier. As your assets grow and your needs change, you can move to higher tiers with more service offerings to help you achieve even greater goals.

Wrong. The key to building a secure future includes budgeting and learning. It involves using different money tools like insurance policies and estate planning, as well as making changes to different aspects of your finances and even your life as your situation and needs change, and your situation and needs will change.

Without financial planning, social security and 401(k) balances may not keep up with the cost of living. The future of Social Security is uncertain, as it's predicted to run out of funding by 2034 at the latest unless Congress steps in to make drastic changes. The drastic changes could range from increasing the full retirement age, changing eligibility, increasing taxes, and/or decreasing how much Social Security will pay in benefits.

Thinking about the future can sometimes be scary, but proper financial planning is about managing circumstances and preparing for life’s transition. Strateon Intelligent Wealth develops comprehensive financial plans that are continuously monitored and updated to adjust for changes in clients lives and with the markets to better ensure that clients can achieve their goals and live a prosperous future.

If your financial planner or advisor doesn’t keep you in the loop, it’s time to change. You need to understand the whole picture, complete with details of what works or why it doesn’t. You need a financial planner or advisor that monitors not just your investment accounts, but your entire plan, so that you know when your on the right track for success and when your sliding off the path and need to adjust to get back on the road to achieving your goals.

Financial planning isn't just about investments. It's about making your finances more efficient so that your money is working for you, so that you're living more comfortably, and so that you have more cash to achieve your goals and enjoy living your life. You can learn to spend less and smarter to accomplish your future goals. With Strateon Intelligent Wealth, regular review meetings are an important part of the financial planning process so that your plan can be adjusted as needed.

It's important that you take part in managing your current finances and planning your future.Financial planning is a collaborative process.

Long-term planning and good financial decisions with the help of a professional financial planner is a managed future. Understanding the basics of the financial advice will help to avoid overwhelming mistakes brought on by these myths.

Financial planner. Financial advisor. Investment advisor. Investment manager. You may be wondering what they are and how they’re different. And most of all, you may be wondering what they can do for you and if you should have one. To many, the titles may be interchangeable. In reality, they are not. Each actually plays a different role. An Investment manager typically manages assets in an investment portfolio. An investment advisor typically provides investment advice, but doesn’t actually manage the account. A financial advisor typically provides financial advice to a person or business, or perhaps to a retirement plan. A financial planner, does so much more.

Financial planning is the long-term process of a financial planner working with you to define your financial goals and then develop and implement a personalized plan to achieve those goals. The reason it’s a long-term process is because your goals will change throughout your life, and those goal changes will necessitate adapting your financial plan and its implementation to those changes.

When you engage financial planning services, the financial planner gathers personal and financial information about you. That gathered information, along with additional data such as realistic assumptions for inflation, investment performance and returns, savings, and spending, are used in various calculations to project if, when, and how you’ll meet your financial goals. Many questions you have will get answered, including:

• What is the probability I’ll meet my goals?

• When is the likelihood I’ll achieve my goals?

• What changes do I need to make to achieve my goals?

  
  

Your goals can be anything from wanting to buy a house to wanting to start your own business to making sure you don’t run out of money in retirement, and anything in between and outside.

Hiring the right professional starts with understanding what financial planning is.

There are numerous ways a financial planner can work with you to achieve no only your financial goals, but your personal ones as well. A financial planner could actually be thought of as more of a life planner.

A financial planner helps organize your finances, manage your budget, and achieve your financial goals as efficiently as possible. A financial planner can identify areas you need to work on, such as overspending or poor saving habits. They can take out the guesswork of how much you need to save to be on track for retirement and help you figure out what types of accounts you should be putting that money into. Financial advisors can help you navigate complex financial matters such as taxes, estate planning, and paying down debt, as well as making sure you maintain an adequate emergency fund.

A good financial planner will listen to you to learn what’s important to you, and can help improve the quality of the financial decisions you make. Hiring a financial planner means you have an expert at your disposal who can give you informed and helpful advice on how to manage one of the most vital aspects of your life. A good financial planner will give you advice and recommendations regarding many different areas, including:

• Determining short- and long-term goals

• What you need to do differently with your finances

• Establishing and maintaining an emergency fund

• Budgeting and saving

• Types of retirement accounts to use and how much money to put in them

• How best to utilize benefits offered by your employer

• The type of mortgage you should have

• Mortgage payoff and/or refinance options

• Insurance options

• Tax optimization and planning

• Required rate of return from your investments to achieve your goals

• Risk tolerance assessment

• Selecting investment account types

• Identifying appropriate asset allocation

• Managing and eliminating debt

• Savings for your child’s college education

• When to begin receiving Social Security benefits

• Estate planning

• Business planning

  
  

It doesn’t stop there. Any questions you have regarding your finances or anything that could affect your finances and retirement are questions that a good financial planner can answer or help you answer.

A financial planner can also act as your investment advisor and investment manager. They may give you investment advice, helping you make the best decisions for those assets based on your personal situation, as well as manage your investment portfolio for you so you don’t have to worry about handling that complicated task yourself.

A financial planner’s goal is to ensure you're financially secure not just 5 or 10 or 20 years down the road, but all the way through your retirement, for the rest of your life. That means a financial planner will make sure you're not missing any opportunities now that will affect your future.

A good financial planner will provide you with the education and tools you need to plan out your financial future, helping you make the best decisions about your money so that money occupies less space in your life, leaving room for the things you care about most.

If you’re struggling to prioritize your financial goals, need a plan for where and how to save, want help with investment management, or you want to be able to spend less time thinking about your money and more time doing what you care about most, you may want to work with a financial planner.