From Savings Bucket to Retirement Engine: How to Build Your Own Personal Pension

In this episode, Steve and Elizabeth Holland, along with co-host Todd MJ Schnitt, tackle common retirement planning pitfalls, shifting the focus from simply accumulating savings to actively converting those assets into a reliable, lifelong income stream. The conversation highlights the crucial need for a personalized and proactive financial strategy that goes far beyond traditional IRA and 401(k) accounts.Key Takeaways

• Beware of Target-Date Funds: The hosts warn against target-date funds, which they say often contain a large portion of underperforming fixed-income assets that can act as an "anchor," creating a "death spiral" for your retirement savings.
• Inflation Is a "Silent Wealth Killer": Inflation can significantly erode your purchasing power over time. It is vital to have an inflation-adjusted strategy, as well as a plan for your cash reserves, to protect your money from devaluation.
• Build Your Own "Personal Pension": Since traditional company pensions are rare, you must create your own. This can involve combining different investment vehicles, including annuities, to establish a reliable, guaranteed stream of income that is not tied to the volatility of the stock market.
• Taxes and Withdrawals Matter: A comprehensive retirement plan must include a tax diversification strategy and a smart withdrawal strategy. This allows you to pull from different tax-advantaged accounts at the right time to minimize your tax burden and avoid selling assets at a loss during a down market.
• A Will Is Not Enough: For estate planning, a simple will is insufficient. A full estate plan with a trust is necessary to ensure your assets are protected and distributed as intended, preventing them from falling into probate or being taken by the state.

The Holland Group Retirement Wealth Advisors offers a complimentary, no-obligation review to help you create a personalized blueprint for your financial future. This fiduciary process ensures that your retirement plan addresses all of these critical areas and is designed to provide you with clarity and peace of mind.Contact The Holland Group Retirement Wealth Advisors for a complimentary, no-obligation review by calling [phone], or visit AskTheHollands.com to schedule a discovery call at your convenience.