Retirement Planning

Blaze a Trail to Your Dream Retirement


You’re most likely in your 40’s, 50’s or 60’s and can see a time coming to settle down on the foundations you’ve built, and prepare a legacy for those you care about.

There’s no better time than right now to strengthen those foundations and ensure your golden years retain their sparkle, and you remain prosperous and independent throughout.

Everybody wants the rewards for their long years of hard work, and the dream retirement lifestyle they hope their efforts will bring.

Retirement planning is all about sustaining your current lifestyle and doing the things that bring you fulfilment and joy.

When we sit down to talk “retirement” with many clients for the first time, we’re not surprised to find that they’re heavily mortgaged and have significant costs and repayments to meet.

We’re used to being asked questions like:

  • How much am I worth?
  • How long will it take to secure my family’s future before I retire?
  • How can I earn enough to cover my obligations and live well in retirement?
  • How do I protect my income from a crash and how long must that cushion last?
  • What impact will rising health insurance costs have on my ability to retire?
  • How do I protect my income from the impacts of rising inflation?

If you’d also like answers to these types of questions, then let’s talk about how we can help you.

Get in TouchFAQs

WestStar Financial Advisors help you answer these and many other questions, as we bring focus to the key areas of your prosperity in retirement.

We have great experience in helping create and execute a plan for dependable income regardless of what the markets deliver, and addressing issues like inflation, health insurance, tax efficiency and long-term security.

Retirement planning is about how you look at tomorrow today 

We’ve seen many people wait until they’re nearing retirement before coming to us for advice, and discovered that many are under-funded for the retirement they have in mind.

The best time to begin investing in your retirement plan is when you’re as far away from retirement as possible.

If you haven’t done so, then uncertainty about tomorrow is a great reason to begin. It’s far easier than you’d expect, and the way to go about it is explained in our handy Financial Flightpath Blog (below).

For The Best Ways to Look After Tomorrow Today, Read our Handy Article Here

Pursue Your Unique Dreams With WestStar’s 360° Retirement Planning

WestStar’s holistic approach to retirement planning has helped many retirees assess their preparedness, define their goals and timelines, and pursue them with confidence and clarity.

We analyze your financial situation, including your investments, savings, pensions, asset values, loan balances, job security, and factors like caring for aged parents, and helping your kids or grandkids through college. Your age, family dynamic and life expectancy play significant roles in our modelling.

We assess your retirement income sources – like pensions, Social Security and employer-sponsored retirement plans.

We have a deep understanding of the many types of retirement plans including 401(k) plans, 457 plans, Roth 401(k) plans, SIMPLE plans, 403(b) plans, and Thrift Savings plans.

Our employer-sponsored retirement plan services cover participants and sponsors.

By using data and analytics, and staying innovative, we help you make the most informed decisions, in pursuing the retirement lifestyle you want.

Your retirement journey is mapped out on a personalized 360° Roadmap, with a dashboard that makes progress toward your goals transparent. You get all the facts at your fingertips

Your Roadmap sets out our strategic thinking in a clear, understandable and actionable way. You’ll understand your options and projected outcomes, and why we believe one path is better than another.

The sigh of relief from our clients when we show them how all of their hard work can get them to their retirement goals is always a special moment.

Advice to Build Your Dreams On

Your Navigator 360° Roadmap is strategically reviewed throughout your journey, tracking your progress and course-correcting to keep you on track and on plan. We measure your probability of success, and your trajectory based on our recommendations.

Beating Inflation

Inflation is another concern in retirement planning, and one we carefully consider in our modelling. We will assess the best ways to beat inflation, and consider Treasury Inflation-Protected Securities, cash, short-term bonds, stocks, real estate, commodities and gold.

Downside Protection and Risk Tolerance

We assess whether your investment portfolio has enough downside protection if the economy hits a pothole and the market drops like it did in 2008. We keep a close eye on where you’re at in relation to your milestones and financial planning objectives.

Your Retirement Tax Strategy

When many clients first come to us for retirement advice, we find that they’re paying too much in taxes. Maximizing your retirement plan savings under current tax law is an important consideration.

We design a retirement tax strategy that pinpoints the taxes you’ll face at various stages, anticipates how and when to tap your assets to cover your personal expenses, and achieves your goal to pay as low a tax rate as possible.

Social Security and Medicare

By taking your Social Security in the right way, your Medicare premiums could be halved. We will walk you through the process to find, deploy, and protect these savings.

Our advisors provide retirement income strategies to help you decide the best time to take benefits, and stay within tax brackets.

Protecting your Retirement Provision and Income

Your retirement provision and retirement income goals need to be met, no matter what life throws at you. Here’s how we help you plan for that.

Long-Term Care and Disability Insurance

Protecting yourself against the financial impacts of disability, loss of income, and the cost of long-term care requires prioritization.

Long-term disability and long-term care Insurances are designed to return a percentage of your income lost due to disability, and cover a percentage of costs associated with care.

Other things we do to smooth your path to retirement

We help you to visualize the kind of life you’d like to live in retirement, and to anticipate and budget for the necessary expenses – everything from healthcare to a cabin on the lake.

According to your needs, we develop and implement a 360° Financial Plan that can also include the following planning essentials:

Federal Employees
Federal Employees
We help you to manage your federal employee benefits effectively
Estate Planning
Estate Planning
We help you create a tax-efficient estate plan that defines the legacy you leave, and your asset distribution.
Generational Wealth
Generational Wealth
We ensure the long-term preservation and growth of generational wealth .

Relationships Built On Trust

At WestStar we believe that trust is earned. Our relationships are real, honest and candid. We say what we do, and we do what we say.

Our personal touch and care is evident in all of our relationships, many of which have served pre-retirees, retirees and their families’ best interests for decades.

If that sounds like a relationship worth pursuing, then we would be delighted to partner with you on your trailblazing retirement quest.

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Disclosures

Distributions from traditional IRAs and employer sponsored retirement plans are taxed as ordinary income and, if taken prior to reaching age 59 ½, may be subject to an additional 10% IRS tax penalty.

All investing involves risk, including the possible loss of principal. There is no assurance that any investment strategy will be successful.

Retirement Planning Frequently Asked Questions

Retirement planning is a process that seeks to achieve a comfortable life after you stop working. Your retirement plan needs to take into account your estimated future expenses, liabilities, and life expectancy.

It begins with considering your ideal post-retirement lifestyle, and setting financial goals and making investments to secure that lifestyle. To do so, you must estimate your future expenses and then save and invest strategically whilst managing risks.

The process can begin any time during your working years, but the earlier, the better. This is because when you reach retirement age, you go from accumulating assets to what planners call the distribution phase. This is when you’re no longer paying into your retirement accounts but collecting the rewards of decades of savings.

Here’s a breakdown of how retirement planning works:

  1. Set Retirement Goals
  • Determine the ideal age at which you want to retire (for calculation purposes).
  • Estimate your future expenses (housing, healthcare, travel, etc.).
  • Consider your ideal retirement lifestyle.
  1. Calculate How Much You Need
  • Estimate your retirement duration (typically 20-30 years).
  • Use the 4% rule (you can withdraw 4% annually from your retirement savings).
  • Account for inflation and factor in a buffer for unexpected costs.
  1. Build Retirement Savings

A key part of a retirement plan is taking advantage of a government-approved investment vehicle such as an individual retirement account (IRA) or a 401(k) account, which offers tax advantages to retirement savers.

  • Employer-Sponsored Plans: Plans such as a 401(k) or 403(b). If an employer match is available, contribute enough to secure it.
  • Pension Plans: If your job offers one, understand the benefits and contribute to it if the benefits are worthwhile.
  • Individual Retirement Accounts (IRAs): Consider a Traditional or Roth IRA for tax advantages.
  1. Invest Strategically
  • Diversify your investments to minimize risk (stocks, bonds, real estate, etc.).
  • Adjust your risk level based on your age (many people are more aggressive when younger, and safer as they approach retirement).
  • Regularly review and rebalance your portfolio.
  1. Minimize Taxes
  • Use tax-advantaged accounts such as IRAs and 401(k)s.
  • Consider tax-efficient withdrawal strategies in retirement – withdraw from taxable accounts first, then tax-deferred, then tax-free.
  • Be aware of required minimum distributions (RMDs).
  1. Plan for Healthcare & Insurance

Medical expenses tend to increase with age. You should consider government-sponsored Medicare coverage that is available at a modest cost; many people choose to supplement it with a Medicare Advantage or Medigap policy.

  • Consider long-term care insurance.
  • Enroll in Medicare and understand coverage options.
  • Maintain a health savings account (HSA) if applicable.

Don’t neglect life insurance and disability insurance to ensure that your family can survive financially should something happen to you.

  1. Create a Withdrawal Strategy
  • Withdraw from taxable accounts first, then tax-deferred accounts, then tax-free accounts.
  • Use annuities or dividend income to maintain stability.
  • Remember your goal is to not outlive your savings.
  1. Estate Planning
  • Create a will and power of attorney.
  • Plan for passing wealth to your heirs with minimal tax impact.

When you start out with creating a retirement plan, you may find it hard to come up with concrete figures, but a reasonable estimate will be helpful, because the idea is to revisit your plan on a regular basis to fine-tune it over time.

Without a solid retirement plan, you might struggle to cover your basic needs, medical expenses, and lifestyle costs after you stop working. Retirement planning ensures financial security and stability when you stop working.

Here are the 9 key reasons why retirement planning matters:

  1. Financial Independence & Freedom
  • A well-planned retirement means you get to control your financial future and enjoy the kind of retirement lifestyle you dream of and work so hard to achieve.
  • With a retirement plan, you won’t have to rely on family, Social Security, or government benefits to meet your needs.
  1. Rising Cost of Living & Inflation
  • The cost of goods, services, healthcare, and housing are increasing over time.
  • If you don’t account for inflation, your savings may lose purchasing power over the years ahead.
  1. Longer Life Expectancy

People are living longer, and advances in medical science mean that they are able to live even in ill health. These factors have extended life expectancy and this may mean many more years to fund after you retire.

  • Your retirement funds need to last 20-30+ years.
  • Without proper savings, you could run out of money in old age and become a burden on your loved ones.
  • Don’t neglect life insurance and disability insurance to ensure that your family can survive financially should something happen to you.
  1. Rising Medical & Healthcare Costs
  • As you age, your healthcare expenses will rise, and may include long-term care.
  • Medicare may not cover everything, so additional savings or insurance is often necessary.
  1. Maintaining Your Desired Lifestyle
  • Retirement should be enjoyable and allow for travel, hobbies, and relaxation.
  • A firm financial foundation lets you live comfortably without stress.
  1. Avoiding Becoming a Burden on Your Family
  • Without savings, you may need financial help from family members.
  • Planning ahead helps ensure you remain self-sufficient and avoid reliance on your family.
  1. Taking Advantage of Tax Benefits
  • Investing in Retirement accounts like 401(k)s and IRAs offer tax advantages that help your savings grow.
  • Proper tax planning and advice can reduce the amount you owe when withdrawing funds.
  1. Protection Against Economic Uncertainty
  • As the economy fluctuates, Social Security alone will not be enough.
  • A diversified retirement plan helps provide stability even during market downturns.
  1. Confidence in the Future
  • Knowing you have a financial plan in place reduces stress about the future.
  • It allows you to focus on enjoying life rather than worrying about money.

If you – like most people – believe that starting retirement planning can feel overwhelming, you’re not alone. But breaking it into 8 simple steps makes it manageable.

Here’s where to begin:

  1. Set Your Retirement Goals
  • At what age do you want to retire (for calculation purposes)?
  • What kind of lifestyle do you want (travel, hobbies, part-time work, etc.)?
  • Where do you plan to live (stay in your current home, sell your home and downsize, move to another city or country)?
  1. Estimate Your Retirement Expenses
  • List your current expenses: rent/mortgage, food, travel, healthcare, entertainment.
  • List your future expenses: factor in inflation, medical costs, travel, mortgage, home repairs, etc…
  • As a rule of thumb, you should plan to replace 70-80% of your pre-retirement income to live on every year.
  1. Assess Your Current Financial Situation
  • Calculate your net worth (assets – liabilities / debts).
  • Review your savings and investments (401(k), IRA, pension, stocks and real estate).
  • Estimate your expected income in retirement (Social Security, rental income, pension, dividends, withdrawals, side business revenue).
  1. Start Saving & Investing Strategically
  • Make sure you are taking advantage of any employer-sponsored plans: If available, contribute to a 401(k) or 403(b) (always aim to contribute enough to get your employer match).
  • IRAs: Open a Roth IRA (for future tax-free withdrawals) or a Traditional IRA (for tax-deferred growth).
  • Invest strategically: Diversify in stocks, bonds, and other assets based on your age and risk tolerance. Adjust your risk level depending on your age (you can generally be more aggressive when younger, and safer as you approach retirement).
  1. Minimize Debt & Expenses
  • Pay off high-interest debts (credit cards, loans) and stop buying on credit.
  • Reduce unnecessary expenses and save consistently for retirement.
  • Consider selling your home, downsizing or refinancing if needed.
  1. Plan for Healthcare Costs
  • Do your research – learn about Medicare & supplemental insurance.
  • Consider a Health Savings Account (HSA) if you qualify.
  • Plan for long-term care needs (consider insurance, savings, or Medicaid options).
  1. Create a Withdrawal Strategy
  • Know when to take Social Security (waiting longer increases pay-outs).
  • Plan how to withdraw from 401(k), IRA, and taxable accounts tax-efficiently. Withdraw from taxable accounts first, then tax-deferred accounts, then tax-free accounts.
  • Follow the 4% rule (withdraw 4% per year for a steady income).
  1. Review & Adjust Regularly
  • Check progress every year and adjust your contributions if needed.
  • Rebalance your investment portfolio as you get closer to retirement. The idea is to revisit your plan on a regular basis to fine-tune it over time.
  • Stay informed about tax laws, inflation, markets and investment trends.

It stands to reason that the amount you need to retire comfortably is highly personalized. It is your “Magic Number” and nobody else’s. Opinions around this question vary, but there are rules of thumb that can give you an idea of how much to save.

  • Many people say that you need around $1 million to retire comfortably in today’s terms. But life is getting longer, and inflation is driving costs up.
  • Many financial professionals use the 80% rule. The rule states that you need 80% of your current income to live comfortably after retiring. So if you make $100,000 per year, you would need savings that produce $80,000 per year for roughly 20 years of retirement, or (in other words) a total of $1.6 million.
  • Other financial commentators say most of us aren’t saving near enough to meet those numbers and will need to adjust our lifestyles accordingly in retirement to make our retirement provision last longer than we do.

Estimating Your Expenses

Your post-retirement expenses largely determine your “magic number.”

For this reason, it’s a great idea to create a retirement budget, calculating your estimated costs or living expenses across the many aspects of your desired lifestyle: housing, health insurance, food, clothing, hobbies, travel, entertainment, transportation, etc.

While it may be hard to come up with concrete figures, a reasonable estimate will be helpful as a starting point for your retirement planning. This figure should be revisited annually as your life unfolds and your needs change.

There are several key steps that apply to almost everyone during their retirement planning regardless of where they are in life.

These are some of the most common steps:

  1. Come up with a plan. This plan should include deciding when you want to start saving (the earlier the better) when you want to retire, and how much you’d like to save for your ultimate goal – your desired retirement lifestyle.
  2. Decide how much you’ll be able to set aside each month (the more, the better). Use automatic deductions wherever possible to take away the guesswork, to keep on track, and to take away the temptation to stop or forget to deposit money into your retirement accounts.
  3. Choose the right accounts for you. You should have access to one or more of the following plans depending on how you earn a living. Each has its own rules and regulations.
    • Invest in a 401(k) or similar account if your employer offers that option. If the company offers an employer match and you don’t sign up, you’re giving away free money. Either way, with a 401(k) you’re getting a good deal tax-wise.
    • If you can’t contribute to a 401(k) then open a Roth IRA (for future tax-free withdrawals) or a Traditional IRA (for tax-deferred growth).
  4. Check on your investments from time to time and make adjustments. This is especially important after a big event, like marriage or a baby.

Note: Tax-advantaged retirement savings plans (like those mentioned above) have become the keystone of long-term savings for Americans.

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Disclosures

Some IRAs have contribution limitations and tax consequences for early withdrawals. For complete details consult your tax advisor or attorney.

Distributions from traditional IRAs and employee sponsored plans are taxed as ordinary income and, if taken prior to reaching age 59 ½ may be subject to an additional 10% IRS tax penalty.

 A Roth IRA offers tax free withdrawals on taxable contributions.

To qualify for the tax-free and penalty-free withdrawal of earnings, a Roth account must be in place for at least five tax years, and the distribution must take place after age 59½, or due to death or disability. Depending on state law, Roth accounts distributions may be subject to state taxes.

A diversified portfolio does not assure a profit or protect against loss in a declining market.

The cost and availability of life insurance depend on factors such as age, health, and the type and amount of insurance purchased. Before implementing a strategy involving life insurance, it would be prudent to make sure that you are insurable by having the policy approved. As with most financial decisions, there are expenses associated with the purchase of life insurance. Policies commonly have mortality and expense charges. In addition, if a policy is surrendered prematurely, there may be surrender charges and income tax implications.

All investing involves risk, including the possible loss of principal. There is no assurance that any investment strategy will be successful.