Comprehensive Financial Planning & Your Retirement Goals

Retirement has always been a part of the American Dream. The idea of living out your golden years free of worries about work or finances is something many people aspire to. However, recent economic, social, and political uncertainties, as well as concerns about social security, have led many to believe that the dream of a comfortable retirement may be out of reach. 

I’ve spoken with many clients who ask, "Can you retire comfortably with $2 million?" Although concerns about retirement persist, it's still possible to pursue a comfortable lifestyle in your golden years. By employing effective planning strategies and working with a trusted financial advisor who specializes in working with successful, high-net-worth individuals and families, you can successfully navigate today's challenges as you pursue a fulfilling retirement.

To live a comfortable retirement, it is crucial to start strategizing early on. This involves making the most of retirement savings plans, like a 401(k) or IRA, as soon as possible. By starting early, you allow your money more time to grow, leveraging the power of compound interest to your advantage.

Even if you're beginning your financial journey later than anticipated, there's no need to worry. As your Personal CFO, Silberman Wealth Strategies is here to assist you in devising a plan that not only helps you catch up, but also maximizes your retirement savings efforts. This is where working with a wealth management firm that offers comprehensive financial planning can make a significant difference in pursuing your financial goals. 

In the following sections, I will outline various strategies to help optimize your investments, taxes, and other long-term considerations, all aimed at enhancing your retirement planning. If you find the information valuable and wish to explore further, feel free to reach out at your earliest convenience for a discussion.

Despite the significant impact of taxes on retirement income, many individuals tend to overlook the importance of devising tax strategies for their golden years. In essence, tax-reduction tactics play a crucial role in ensuring a comfortable transition out of the workforce, but this fact often goes unrecognized by both current and future retirees.

Neglecting to put these strategies in place can result in the loss of hard-earned retirement income. By not having a comprehensive long-term financial plan that incorporates credits, deductions, and tax-friendly investment registrations, individuals risk overpaying their taxes. This, consequently, leaves them with less money to meet their retirement needs.

Utilizing tax reduction strategies often entails employing a diverse array of tactics, including contributions to tax-advantaged retirement accounts, and tax-loss harvesting. Our methods are all legally compliant; aimed to maximize your deductions and credits to provide you with the most after-tax income possible. 

However, these strategies are not designed for short-term use; the savings accumulated in a single tax year may seem insignificant compared to the financial benefits gained through a decade or more of carefully planned tax reduction strategies.

Tax-loss harvesting may no longer be the well-kept wealth management secret it once was, as evidenced by the increasing number of people searching online for its worth. When asked if tax-loss harvesting is worthwhile, my response is generally affirmative, especially if you're considering selling another asset with significant capital gains.

At first, the idea of intentionally selling an investment at a loss may appear counterintuitive. However, if you have another profitably matured asset, strategically employing tax-loss harvesting can help balance the scales. By timing it well, you can possibly reap the benefits of a sale without sharing a disproportionate amount of your gains with the IRS.

Failing to utilize tax-reduction strategies means potentially squandering retirement income. In today's economy, even the affluent can see their retirement savings diminished by non-strategic taxation. Therefore, adopting a proactive approach to reduce taxes and minimize your tax bill is crucial in order to retain more of your hard-earned money.

Some clients are grappling with the prevailing market conditions, as they struggle to achieve their desired returns and make sense of the complex investment landscape. In some instances, their frustrations may stem from a lack of familiarity with the endowment-style investing approach.

Endowment-style investing, which refers to the investment approach used by large, long-term institutional investors such as university endowments and insurance companies, typically incorporates a mix of active and passive investing strategies, as well as allocating to liquid and illiquid investment. The goal of this approach is to achieve a consistent return on investments while preserving the purchasing power of the endowment's assets over the long run.

Passive investing, using low-cost index funds or exchange-traded funds (ETFs), is often a part of endowment-style investing, as it provides cost-efficient exposure to a wide range of asset classes. However, endowments also use active management strategies to seek higher returns and diversification by investing in alternative and illiquid assets such as real estate, private equity, and private debt. 

The specific allocation between active and passive strategies and incorporating illiquid investments will depend on the individual endowment's investment objectives, risk tolerance, and investment policy. 

At Silberman Wealth Strategies, we recognize the importance of crafting an impactful retirement plan that also serves as a strategic tax-reduction blueprint. Our dedicated team collaborates with you to create personalized investment portfolios designed to align with your unique needs and objectives. Utilizing endowment-style investing as one of several techniques, we strive to optimize returns while minimizing risk for our clients.

Are Your Finances Becoming Overwhelming? Consider the Silberman Team To Serve As Your Person CFO. Let Us Do the Heavy Lifting for You.

Healthcare costs continue to rise, placing a substantial financial strain on individuals and families, including those with significant wealth. The expenses associated with extended care can quickly deplete even the most meticulously planned and intelligently invested savings.

Unfortunately, the idea of long-term care is something many people don't think about until it's too late. The costs associated with it can be pretty hefty. A private room at a nursing home can range from $280 a day to $550 daily. That works out, roughly, to $9,000-$15,000 each month. Even a few years of extended care can quickly deplete unprotected savings.

This is why, when you’re planning for retirement, it's important to think beyond just your monthly income and expenses. These are just a few of the ideas that can help to reduce healthcare costs. Those expenses may be the biggest that you'll face in retirement, so it's essential to plan for them accordingly. Long-term care insurance can be invaluable in this regard.

At the same time, there are several factors to consider when evaluating long-term care policies and carriers. The type you’ll need and the amount of coverage you’re likely to want must factor in. Similarly, the cost of potential premiums and the financial strength of your prospective insurance company should be reviewed, as well. 

I mention these things because you may not have your own long-term needs, alone, to consider. It’s often important to think about the healthcare costs of your aging parents. This can be a significant financial undertaking, particularly if they require extended care (as nearly 70% of people over 65 today are likely to). 

However, there are strategies we may be able to apply to reduce these unavoidable costs. As your Personal CFO in Brentwood, TN, I’d be happy to discuss them at your convenience.

Endowment-style investing has been increasingly gaining the attention and admiration of the financially independent and financial institutions alike. Essentially, it is a long-term, highly diversified investment strategy that seeks to maximize returns while managing volatility with discipline. 

It also involves active asset allocation management. This typically utilizes private assets such as venture capital, private equity, hedge funds, real estate, and derivatives. The idea is to create an opportunity to generate sustainable returns and cultivate growth, which is tangible in both the short-term and the long term. 

It is a sophisticated approach for those seeking optimal stability through up-and-down markets wracked by inflation and volatility. With a long-term focus, it offers the potential for remarkable success, as well. That’s what makes it a staple of financial planning for high-net-worth individuals. Endowment-style investing is only one of Silberman Wealth Strategies’ specialties. Sometimes you win by not losing!

Sophisticated wealth management not only helps to safeguard your family's potential financial legacy but can also offer comprehensive assistance in various aspects of financial planning. For instance, I can guide you in strategically investing your assets, minimizing your tax liabilities, magnifying your charitable gifting, and potentially expanding your nest egg. Additionally, I routinely offer counsel on diversifying portfolios and mitigating the risks associated with market volatility.

Proactive asset protection measures must be taken to shield you and your family from potential legal and financial risks. Planning for unforeseen events should begin as early as possible. In doing so, you and your loved ones can rest assured that appropriate safeguards have been established.

Pros

• Welcome to Music City. Nashville is world-famous as the geographic heart of country music. From the Grand Ole Opry to the National Museum of African American Music, there’s something for everyone here.
• The Great Smoky Mountains. Tennessee is home to one of the most visited national parks in the country. The mountains offer stunning views, hiking trails, and a variety of recreational activities for visitors.

• No state income tax. One of the biggest financial benefits of living in the Volunteer State is that we have no state income tax. This means that resident retirees can keep more of their income.

• Delicious barbecue. Tennessee is known for its grilling prowess, and for good reason. From Memphis-style ribs to Nashville hot chicken, there are many delicious options to choose from.

Cons:

• The traffic. It isn’t statewide, but major cities like Nashville and Memphis can have heavy traffic. This can be frustrating for retirees who are eager to enjoy life without waiting.
• Humid Summers. We have a subtropical climate. This means that summers are often hot and humid. Those who don't enjoy the heat may be uncomfortable until autumn returns.

• Barbecue is fattening. While the local fare is delicious, it isn’t always a dieter’s friend. For retirees who must maintain a healthy diet, this might be a drawback.

If the benefits appear to outweigh the possible drawbacks of retiring in Tennessee for you, it's also important to make sure that your retirement finances are in order. If this part of the process sounds more arduous than exciting, here’s some good news: A Personal CFO can make it easy.

What is a virtual family office, and is it right for me? 

“Number one, preserving wealth. This is making smart decisions about your money and avoiding common, costly mistakes. Number two, enhancing your wealth, mitigating taxes, and transferring your wealth is, of course, wealth transfer.”

As an individual who has achieved great success and amassed a substantial amount of assets, you might find it beneficial to engage with a financial advisory firm offering Virtual Family Office (VFO) services.

So, what exactly are VFO services?

This is where a firm like Silberman Wealth Strategies can make a significant impact. Our Virtual Family Office provides a tailored suite of financial services designed to cater to your unique needs and those of your family. From investment advice and estate planning to tax management and a range of wealth management solutions, our VFO services ensure comprehensive financial support for your present and future goals.

One of the key advantages of using a VFO like mine; Mitch Silberman, is that it begins with a comprehensive analysis of your financial situation. Our first meeting with you is geared to help us identify your goals, objectives, and challenges. 

Next, this information is used to develop a customized wealth management plan that is tailored to your needs. This roadmap will outline the strategies, investments, and other tools that will be used to help you achieve your financial objectives. Its completion marks the beginning of the longer-term process. 

This document will serve as both a roadmap for an orientation toward your objectives and a metric for measuring progress each time we meet. Our concierge services effortlessly blend with the expertise of your other professional advisors, such as your accountant or attorney, for a seamless experience.

Assuming that you and I initially agree to work together, I can collaborate with your other professionals, helping to ensure that your financial and estate plans align with your broader goals. This reduces the risk of conflicting advice by ensuring that all of your financial affairs are managed in a coordinated manner.

As a Personal CFO in Brentwood, I have decades of experience in the financial services industry, helping individuals and families pursue their financial objectives. We provide customized, concierge advice tailored to your unique needs as the millionaire next door. To learn about Silberman Wealth Strategies’ style of endowment investing and more, contact us and schedule a meeting.