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Joe Lucey

Retirement Doesn’t Have to Be All or Nothing

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When many people think about retirement, they picture a hard stop: 40 hours one week and poof!, the schedule’s wide open the next. But retirement doesn’t have to be all or nothing. In fact, many people benefit from intentionally planning their transition from the workforce. There are many ways to explore a flexible, phased approach that eases you into your retirement lifestyle. Below, we offer our best advice as you consider your transition to retirement.

The Benefits of a Gradual Retirement

Traditionally, retirement was a one-time thing: coworkers and friends gathered for a farewell party, chipped in for a gift, and sent their colleague off to enjoy a life of golf, gardening, and time with grandkids. Some retirees would sell their homes and relocate to warmer weather. However, this traditional approach doesn’t suit everyone. Many people find joy and purpose in working; it’s difficult to slam the door shut on a decades-long identity. And with longer lifespans and, for some, the financial uncertainties that can lead to, a growing trend has emerged: phasing into retirement or even taking intermittent sabbaticals to blend work and leisure can make for a more flexible and fulfilling transition. Here’s how a gradual approach to retirement can benefit you financially, emotionally, and practically. 

  1. Financial Stability
    Working part-time as you move towards full retirement can provide an additional income stream and reduce the need to draw heavily from your savings or retirement accounts during this transition. This approach can also maximize your long-term monthly payouts and bridge the gap until you’re ready to claim Social Security benefits.

  2. Emotional Lift
    The sudden shift from full-time work to complete retirement can feel jarring. Your whole life shifts! Gradually scaling back allows you to adjust at your own pace, transitioning more intentionally to a new purpose while still maintaining connection with your colleagues and your work-self.

  3. Better Health Outcomes
    Studies suggest that staying engaged through passion-driven work or volunteering in retirement contribute to better mental and physical health. Structured activities that get you out and interacting socially often work to reduce feelings of isolation and increase overall life satisfaction. What do you think you might want to do more of in your retirement?

How to Ease into Retirement

Easing into retirement can offer the best of both worlds – a chance to scale back on work while exploring the freedom of your next chapter. Maybe you’re seeking financial stability, greater fulfillment, or just a smoother transition; a gradual approach can help you strike the right balance. Here are practical steps to help you move confidently into this exciting new phase of life.

  • Explore Flexible Work Options
    Talk with your employer about the possibility of phased retirement options, such as reduced hours or project-based roles. If your current workplace can’t offer you the flexibility you’re looking for, consider if consulting, freelancing, or taking a part-time role might be right for you.

  • Plan for Healthcare Needs
    If you’re transitioning to part-time work, understand how this may affect your healthcare coverage. Research Medicare or other options to ensure you’re fully covered before making changes to your work schedule.

  • Balance Income with Tax Efficiency
    Earning an income during retirement may impact your taxes, particularly if you’re withdrawing from retirement accounts or claiming Social Security. You’ll want to plan out a tax strategy with a financial expert before you embark on your retirement transition.

  • Stay Active in Your Community
    If part-time work isn’t appealing, maybe volunteering would be right for you! Many retirees find fulfillment in mentoring, tutoring, or supporting causes they care about, while still enjoying the freedom of a flexible schedule.

A Customized Retirement Plan

There’s no one-size-fits-all approach to retirement. Some people thrive with full-time leisure, while others prefer to stay partially in the workforce. The key is creating a plan that’s right for your financial needs, lifestyle goals, and emotional well-being. And there are options beyond just retiring cold turkey.

Retirement is a significant transition, but it doesn’t have to be stressful. With a little planning, it can smooth and rewarding. At Secured Retirement, we specialize in helping individuals navigate this phase with confidence. Whether you’re considering a gradual retirement or are ready to jump right in, our team is here to help you make informed decisions for your future. Give us a call: 952-460-3290.

Giving Thanks This Season

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Thanksgiving is almost here, and like many of you, I’m preparing for a long weekend full of family, feasting, and football. 

Around the Lucey family table, there are a few essentials that make our Thanksgiving meal OUR Thanksgiving meal: green bean casserole made with cream of chicken soup (hold the mushrooms, PLEASE!), creamed pearl onions (if you’ve not had them, you’re missing out), and, of course, the two varieties of cranberry sauce (canned and homemade). 

We’ll have both an oven-roasted as well as deep-fried turkey with plenty to share and even more for the next day. The leftovers just might be my favorite part of all!

The freshly prepared food is certainly a highlight, but what truly makes this time of year meaningful is the people I get to share it all with.

I’m grateful to be surrounded by great people in my life – by my family who supports me and by my team members who are all committed to helping our clients plan for a secure financial future. 

As we get ready for another year’s Thanksgiving – tidying our homes, setting our places, preparing our food, and welcoming our loved ones – I hope you’re able to find moments for reflection and gratitude. 

Take stock of your blessings, reminisce about the past, and dream for the future. Hold tight to the present while it’s here.

Thank you for being a part of our Secured Retirement family and trusting us to help you secure a future for you and yours.

Happy Thanksgiving!

Cup of Joe

CUP OF JOE

From Joe Lucey, Founder of Secured Retirement

There’s something about sitting down with a steaming cup of coffee that always kicks my day into high gear. And it’s not just because of the caffeine it sends coursing through my veins.

Throughout my career, some of my biggest revelations have come to me in conversation with my mentor over a cup of joe. Good conversation and personal connection can pick you up in a special way. It’s that feeling that I’m hoping to bring to you with my series, your Cup of Joe.

The Fed Made Its Move: Rate Cuts and Market Momentum

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The Rate Cuts and The Economic Future

The Federal Reserve finally did it—they cut interest rates for the first time in four years. Before their meeting, it was widely expected that a cut was coming, but there remained some mystery as to the cut’s size. While only a quarter-point cut was anticipated, they opted for a more aggressive half-point cut in a move similar to their inflation-combatting tactics. Pre-announcement speculation suggested that a half-point drop would signal concerns about the economy weakening—a bad sign for markets. However, the stock markets reacted oppositely, rallying sharply after the cut was announced.

Looking ahead, two more quarter-point rate cuts are currently expected in 2024 as well as a series of four quarter-point cuts in 2025. In 2026, it’s expected that two further cuts will follow.  This would bring the Fed Funds rate down to around 3%. While we don’t necessarily agree with the anticipated magnitude of the expected cuts, we can assume that they are directionally accurate – short-term rates are likely to move lower in the next year or two. 

Meanwhile, inflation remains slightly above the Fed’s 2% target, with the consumer price index and personal consumption expenditures lingering around 2.5% and continuing to trend downward. It is possible the Fed could pause rate cuts or even reverse course and raise rates if inflation happens to take hold again. However, their aggressive half-point cut suggests they feel confident that the economy is softening and lower rates are warranted.

Stock Market Snapshot

Despite indications of a slowing economy, the stock market seems virtually unstoppable and continues to provide robust returns. The S&P 500 returned over 5% in Q3 and is now up more than 20% year-to-date. We remain cautious as valuations remain stretched. Certain areas of the market look more attractive than others, depending on sector and market capitalization. We expect small caps – companies requiring loans to grow – to outperform large caps in the coming months as interest rates continue to decline.

In terms of fixed income, interest rates for terms longer than three months have already adjusted, so we don’t anticipate much further downward movement. While fixed income has posted solid returns this year, future gains may be somewhat limited. With shorter-term rates dropping, investments in money markets and T-bills will earn lower interest and therefore garner fewer “real” returns when inflation and taxes are considered. Now could be a good time to explore other options for income and safety, whether that means locking in current rates or considering alternative strategies with better potential returns.

Election Effects

Many may be concerned about how next month’s election will affect the economy, but historically elections have a limited impact on the markets. This year should be no different. The election outcome may affect different sectors, but the overall market impact is likely to be muted. However, markets dislike uncertainty, so a post-election rally could occur once the results are in.

The Bottom Line

If you are concerned about the stock market and seeking returns beyond what fixed-income investments can offer, this may be an opportune time to explore strategies participating in market upside while limiting downside impacts. Many investors have become complacent after enjoying the strong returns of the stock market since the beginning of 2023. We will caution risks abound; do not put your retirement plan in jeopardy by taking on an inappropriate amount of risk – whether it be too little or too much. Call us if you would like to review your portfolio and ensure you remain on track to enjoy a worry-free, secure retirement: 952-460-3290.

Nathan Zeller Secured Retirement

Nate Zeller

Chief Investment Strategist
Secured Retirement

Financial Fears Haunting You?

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Fall’s cool air is winding its way through our cities, the leaves are starting to change, and Halloween is already approaching. Come the 31st, you’ll find my wife and I bundled up, handing out candy to the trick-or-treaters of the neighborhood. 

I always like to see which character is the most popular costume in a given year. Will it be Taylor Swift? Deadpool or Wolverine? Beetlejuice? We’ll see!

While this season brings its share of chills and thrills, visions of goblins and ghouls aren’t likely what’s keeping you up at night. Volatile markets, inflation, and rising interest rates have created a climate of uncertainty capable of sending shivers down anyone’s spine.

Being in the stock market can feel a little too much like being in a haunted house attraction at times – you never quite know what’s lurking around the corner. One moment, everything’s calm, and the next, your stomach drops.

But here’s the thing: while headlines over market turmoil may terrify you in the short term, a well-planned financial strategy can be your long-term protection.

Remember, even during the most volatile times, markets do tend to recover. Corrections are part of normal market gyrations. By focusing on long-term goals, diversifying your investments, and maintaining discipline, you can avoid the tricks and focus on the treats of steady, strategic growth. 

With the right team behind you, you have the opportunity to stay the course or make smart adjustments when the market dips, while others cower in fear.

So, in the wake of a topsy-turvy financial time, know that unsettling market news doesn’t have to haunt your financial future. Putting the right plan in place allows you to face the unknown with confidence and enjoy the sweet rewards of disciplined investing. 

You don’t have to lay awake at night fearing what’s next for you. By working with us you’re building a secure retirement. Schedule your consultation today:  952-460-3290.

Cup of Joe

CUP OF JOE

From Joe Lucey, Founder of Secured Retirement

There’s something about sitting down with a steaming cup of coffee that always kicks my day into high gear. And it’s not just because of the caffeine it sends coursing through my veins.

Throughout my career, some of my biggest revelations have come to me in conversation with my mentor over a cup of joe. Good conversation and personal connection can pick you up in a special way. It’s that feeling that I’m hoping to bring to you with my series, your Cup of Joe.

5 Critical Retirement Questions Every Couple Should Answer

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Have you ever had a disagreement with your spouse about money? Surely not! Never! Right? Alright, come clean; it is one of the top issues couples argue about after all. 

Whether you bicker about spending or have larger discussions about investments, getting on the same page about finances is, of course, a good idea. Without a clear, shared vision, money can become the elephant in the room, silently causing tension that could lead to bigger issues down the road. Here are five essential questions to help guide a conversation with your other half.

1. How Will You Spend Your Money in Retirement?

You may have one vision for retirement, while your spouse has another. It’s important to discuss these differences early. What do you plan to spend on together as a couple? What personal endeavors do you each want to pursue? Create a detailed budget that factors in income, savings, and potential healthcare costs. Unpleasant as it is to consider, one of you may outlive the other and/or face higher medical expenses.

2. How Much Risk Are You Willing To Take On?

Asset allocation and diversification remain pillars of retirement planning. A properly diversified portfolio – one that mirrors your appetite for risk – could help protect you in times of market downturn. Are you on the same page with your spouse about how much risk to be taking? This is a very common trouble spot with couples we meet. Between the two of them, they have a different idea of how they should be invested. Most clients we see are in one of two camps: Taking on far more risk than they realize, or taking on far more risk than they need to at this stage of the game. Ask yourselves: Is the potential upside in the market worth the risk at this stage of your lives?

3. What’s Your Social Security Strategy?

Social Security is a critical piece of your retirement income plan, but many couples overlook how their claiming strategy impacts their long-term finances. Don’t just take benefits at face value. Consider survivor and spousal benefits, taxes, and Medicare premiums. A personalized Social Security analysis can help you avoid costly mistakes and ensure you’re maximizing your benefits. Every couple’s situation is different. Most Americans take their social security benefits at face value. And they wind up leaving tens of thousands, if not hundreds of thousands of dollars on the table.

4. How Will You Plan for Longevity?

Today, people are living well into their 80’s and 90’s. And it’s not uncommon to know of someone who is over 100 years old. In fact, many seniors aren’t just surviving in their older years – they’re thriving. And the statistics keep improving every year. The longer you live means the longer you have to make your money last in retirement. Additionally, women live longer than men. In fact, 85% of centenarians … are women! And because of this, 90% of women will be solely responsible for their own finances at the end of their lives. Make sure your retirement plan accounts for this longevity and that your money lasts as long as you do.

5. How Will You Cover Health Care and Long-Term Care Costs?

Health care and long-term care costs are often overlooked but can be the biggest financial strain in retirement. Plan now so a health issue doesn’t turn into a financial disaster later. By making retirement decisions with a joint outcome in mind, money can last longer and both spouses can look forward to a more secure retirement.

By answering these five questions together, you can ensure a more secure and harmonious retirement. Couples who plan with a joint approach are better equipped to manage their finances, minimize risks, and make the most of their golden years. Retirement should be a time to enjoy life – not stress about money. Taking the time to get on the same page now will allow you both to retire confidently, with peace of mind for the years ahead. And if you need a mediator to weigh in on the right move for you, give us a call: 952-460-3290.

Proactive Retirement Planning: Are You Prepared Enough?

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When it comes to retirement planning, you’re either proactive—addressing challenges before they happen—or reactive, leaving yourself vulnerable without a plan for taxes, healthcare, or income. Taking a proactive approach gives you greater control over your future. Below, you’ll find four areas of retirement planning worth evaluating. Are you set up proactively for retirement? Read on to see how well you’re set up with these proactive strategies.

1. A Forward-Looking Tax Plan

Taxes can be one of the biggest challenges in retirement, especially when you’re living on a fixed income. Tax planning, not just preparation, is key. You need a strategy for when and how you withdraw money from tax-deferred accounts like your IRA or 401(k) to avoid an unexpected tax burden. Most people don’t realize that they could be creating a tax time bomb. The IRS wants their cut, so when you withdraw that money, you must pay taxes. 

Required Minimum Distributions (RMDs) are mandatory once you reach a certain age, and failure to comply can result in hefty penalties. Social Security benefits can also be taxed, potentially up to 85%, a fact many retirees overlook.

What To Do:

  • Tax diversification: Spread your assets across accounts that are taxed now, taxed later, and taxed rarely (like a Roth IRA).
  • Roth conversions: Converting part of your traditional IRA to a Roth can reduce future RMDs and the taxes on your withdrawals.
  • Tax-loss harvesting: Offset capital gains by selling underperforming assets at a loss.
  • Charitable contributions: Donations to qualified charities can reduce your taxable income. However, this is typically best when all of your itemized deductions exceed the standard deduction you would receive for your filing status.

2. Lifetime Income

Retirement requires a consistent income to maintain your lifestyle. It’s the only thing that could help ensure your money lasts as long as you do. Years ago, this income was a “three-legged stool” supported by Social Security, pensions, and savings. Today, pensions are rare, and many people rely solely on Social Security and personal savings.

With increasing longevity – more people are living to 100 and beyond than ever before – retirees face the risk of outliving their savings. Add to this low interest rates on savings accounts and skyrocketing healthcare costs, and income planning becomes more crucial than ever.

You might think that those most likely to go broke in retirement are people with limited means. But that’s not the case. It can happen to middle-class families, and even to those who are wealthy. Nobody’s exempt.

What To Do: Diversify your sources of income to ensure your money lasts as long as you do. Regularly review and update your income plan to adjust for market conditions, inflation, and life expectancy.

3. Social Security Optimization

Social Security may seem straightforward, but how and when you claim your benefits can have a significant impact on your retirement. And, frankly, how to claim them and when to do so have become more confusing than ever before. You could unknowingly trigger an avalanche of taxes and increase Medicare premiums. Claiming too early or making a wrong decision about spousal benefits can cost you tens, if not hundreds, of thousands of dollars.

What To Do:

  • Maximize your benefit timing: Delay claiming Social Security to increase your monthly benefit. Waiting until full retirement age or later can boost your income significantly.
  • Coordinate spousal benefits: Strategize with your spouse to optimize benefits, ensuring you both receive the maximum payout and avoid forfeiting valuable spousal benefits.

4. Asset Allocation & Rebalancing

A well-diversified portfolio is key to protecting your retirement savings from market downturns. The market is unpredictable, and long bull markets often end in corrections. Regularly rebalancing your assets to match your risk tolerance helps shield you from significant losses. If your current advisor isn’t meeting with you to make proper adjustments at least once a year, you may want to look for a second opinion.

What To Do: Meet with your financial advisor regularly to adjust your asset allocation as markets fluctuate. This proactive step can guard your portfolio from unnecessary risk.

So, based on these standards, are you proactively preparing for retirement? Do these strategies sound like things you’re doing? Or are you setting yourself up to scramble when it arrives? These proactive strategies can strengthen your retirement plan and help avoid common pitfalls.

To refine your strategies, give us a call today at 952-460-3290. We’re eager to help you live comfortably in your golden years.

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Danielle Christensen

Paraplanner

Danielle is dedicated to serving clients to achieve their retirement goals. As a Paraplanner, Danielle helps the advisors with the administrative side of preparing and documenting meetings. She is a graduate of the College of St. Benedict, with a degree in Business Administration and began working with Secured Retirement in May of 2023.

Danielle is a lifelong Minnesotan and currently resides in Farmington with her boyfriend and their senior rescue pittie/American Bulldog mix, Tukka.  In her free time, Danielle enjoys attending concerts and traveling. She is also an avid fan of the Minnesota Wild and loves to be at as many games as possible during the season!