Year End Investment Strategy Tips for Every Retiree

Year End Investment Strategy Tips for Every Retiree

November 02, 2020

Investing in 2020 got complicated very, very quickly. Markets have been up and down, mirroring the whiplash that many of us felt as the Coronavirus changed everyday life. With the current election and changing legislation, there seems to be no end in sight to events that could upend a carefully planned retirement.

It’s crucial that you are safeguarding your hard-earned money against the unknown to better prepare for your retirement at the end of a chaotic year. No matter where you live, the Atlanta-based financial advisors at Ty J. Young Wealth Management will make you feel at home with your investment strategy. We have put together a few key issues that could affect your year-end planning. These tips are just a small taste of what you get when you work with our team.

At Ty J. Young Wealth Management, we have seasoned investors, portfolio managers, analysts, and strategists on hand to help you. Our in-house expertise is why we have been called one of the top financial planning firms in Atlanta and beyond. Our clients live in all fifty states, so we are always updating our models and techniques to evolving markets, not just the southeast. We are financial experts with the best advice for approaching the modern economy. Working together with our firm and your tax advisor will ensure that you are ready to get the most out of your investment strategies.

1. Key 2020 Legislation That May Affect Your Retirement and Beyond

Not only have the markets been in a state of flux this year, but policy changes may have affected your retirement funds and investments. For some investors, the Secure Act and the Cares Act will change the game.

The Secure Act

Passed in December 2019, the Secure Act moved the required minimum distribution age up to 72 years old. This means that you don’t need to take money out of your IRA until you hit 72. It also allows you to make contributions to an IRA or 401k at any age.

The Cares Act

The Cares Act suspended the rules on Required Minimum Distributions (also known as RMDs); this act also includes inherited IRAs. These are scheduled to resume in 2021, and every investor with an IRA should be paying attention.

As 2020 draws to a close, many economists anticipate additional, strategic legislation to pass in 2021 to bolster lagging sectors of the economy. These moves will hopefully generate positive trends while shoring up the overall market. As bipartisanship is driving the narrative in Washington at the moment, there’s no telling when Congress will enact a second round of relief or extend the current programs. Any change could affect your money, but at Ty J. Young Wealth Management, our job is to apprise our clients of any changes to the market.

2. Evaluate Your Health Coverage

One of the essential steps to successfully planning for retirement is to be prepared for changes in health and health care. As we grow older, our needs change, and how you address these changes can have broader ramifications on your retirement accounts. If you have made changes to your Medicare coverage during the Annual Election Period (AEP) this year, you might have impacted your financial planning as well.

3. Understand Your Market Value Adjustments

We specialize in Fixed Indexed Annuities, and over the years, our Atlanta wealth management specialists have learned the best strategies to unlock the highest potential returns for our clients. The key to maximizing your returns with annuities is to schedule your withdrawals well. By picking the right time to withdraw your money, you can take home the maximum amount without surrendering anything to fees. Millions of dollars in Market Value Adjustments have been uncovered for our clients over the last few months alone. If you have annuities, make sure to speak to one of our knowledgeable financial strategists at Ty J Young today.

4. Don’t Take A “Wait & See” Approach With Politics

The uncertainty of 2020 has thrown the world for a loop, and with the 2020 election, more and more people are taking a wait and see approach with their investment strategies. We believe that what could happen should not stop you from acting in your own best interest now. There are ways to protect your hard-earned money against chaotic markets regardless of the outcome.

The Fixed Indexed Annuities that we specialize in benefit from being tied to the market without being in the market. They are a safer investment strategy than traditional stocks, especially in a year filled with unprecedented ups and downs. If you time your withdrawals correctly, there are no fees for accessing your money, and they’ve provided a historical average return of 6%-8% return. (Of course, past performance is not a guarantee of future returns.)

Final Thoughts

We know that planning for retirement is challenging. That’s why we specialize in helping you; we want to ensure that you are best positioned for growth and opportunity. The most important rule of retirement planning is to be prepared. It’s easy to overextend your savings, so we recommend continued diligence with your finances.

But by finding the right investment strategies, you can make sure that you retire, knowing exactly what you will have in your savings. At our wealth management headquarters in Atlanta, our team of expert analysts and strategists have discovered the keys to unlocking our clients’ biggest potential returns. Our strategies make planning for the uncertainties of the future just a little bit easier.

Are your investment strategies ready for the opportunities 2021 might present? Talk with one of our strategists today to find out how you can ensure your investment strategies are ready for the future.