4 Actions for Retirement You Should Consider This Year

It’s still somewhat premature to determine what 2025 will be like. Will it improve, decline, or simply continue as is? According to a January 2025 Gallup survey, 41% of participants believe conditions will improve, while 24% think they will worsen.

If you are among the numerous individuals who feel anxious (or are constantly preoccupied) about your financial circumstances, your financial planner in Fresno CA understands that there are steps you can take to regain control starting now — by implementing these 4 retirement strategies to adopt this year.

Claim Your Social Security

By the year 2025, nearly 69 million Americans are expected to receive a monthly Social Security payment. (You can find the 2025 Social Security payment schedule here along with the March Social Security payment schedule).

To receive the complete benefits you have earned from your work history, it is necessary to wait until you reach your full retirement age (FRA). Your FRA is determined by the year you were born. For individuals born in 1958, the full retirement age is 66 years and 8 months. For those born after 1960, the FRA is set at 67.

Increase your savings

The earnings you receive from your savings deposits might see a slight reduction if the Federal Reserve decides to lower interest rates once more. While they have decreased from their peak in the past two decades, the top high-yield savings accounts and CDs still offer an interest rate of 4% to 5% on your deposited funds. In fact, numerous high-yield savings accounts are maintaining rates of approximately 4.25% annual percentage yields (APYs).

Similar to high-yield savings accounts, certain MMAs are providing rates exceeding 4%, with some even reaching APYs of up to 4.5%. This translates to extra funds for you to enjoy during your retirement years.

401(k)s

The standard IRA contribution limit will remain at $7,000 in 2025, while the catch-up contribution limit for individuals aged 50 and above will also remain at $1,000 for the same year. Nevertheless, the income thresholds for assessing eligibility have been raised as detailed below:

For individual taxpayers who are enrolled in a workplace retirement program, the income range for IRA deduction eligibility will be between $79,000 and $89,000.

The cap for SIMPLE retirement accounts has been raised from $16,000 to $16,500.

Understand Your Taxes

In 2025, the IRS implemented several modifications and updates to the standard deductions, tax brackets, and earned income tax credits, among other things. While not all of these adjustments will affect your personal circumstances, it’s beneficial to be aware that if you’re considering a change, such as marriage or divorce, these updates could have an effect on your financial situation.

Federal estate tax rate: Due to the elevated exemption for the year 2025, a minimal fraction of estates will incur federal estate tax. Nonetheless, those estates with a value exceeding $1 million (or $14,990,000 for individuals and $28,980,000 for married couples combined) will face a tax rate of 40%.

Conclusion

We have a strong team of professionals helping ensure you receive all the assistance you need not only in developing your retirement income strategy, but in maintaining it throughout your retirement. Contact us today at 559-230-1648 or visit us today at Soutas Financial to see how we can help you Retire ”Your Way!”

Other Related Articles on retirement consultant

Investment advisory services offered through Foundations Investment Advisors, LLC, an SEC registered investment adviser. The commentary on this website reflects the personal opinions, viewpoints, and analyses of the author, Soutas Financial, and should not be regarded as a description of advisory services provided by Foundations Investment Advisors, LLC (“Foundations”), or performance returns of any Foundations client. The views reflected in the commentary are subject to change at any time without notice. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security, or any security. Foundations manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Foundations deems reliable any statistical data or information obtained from or prepared by third party sources that is included in any commentary, but in no way guarantees its accuracy or completeness.

The post 4 Actions for Retirement You Should Consider This Year appeared first on Soutas Financial.

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4 Actions for Retirement You Should Consider This Year

The post 4 Actions for Retirement You Should Consider This Year appeared first on Soutas Financial.

source https://soutas.com/4-actions-for-retirement-you-should-consider-this-year/

Hidden Retirement Tax Breaks You Must Claim This Summer

The federal government will invest $416 billion in retirement tax breaks for 2024. Yet most Americans don’t claim what they deserve. The highest-earning 20% of workers get 58% of these benefits, while all but one of these lowest-earning groups receive nothing from these incentives.

These numbers might look discouraging, but tax advantages for retirement planning should be available to everyone. Your retirement plan consultant in Fresno CA, knows that tax-free retirement income opportunities exist across all income levels. The Saver’s Credit remains largely untapped with only 5.7% of taxpayers claiming it. HSA contributions can reach up to $4,300 for 2025.

5 Hidden Retirement Tax Breaks to Use Before Summer Ends

Summer is the perfect time to boost your retirement savings with tax breaks that many people miss. Let’s look at seven hidden retirement tax advantages you should grab before fall:

1. Roth IRA Tax-Free WithdrawalsYour Roth IRA contributions grow tax-free and you can take them out tax-free in retirement if you meet certain conditions. You can also take out what you’ve put in (not the earnings) anytime without paying taxes or penalties.
2. The Saver’s CreditThis valuable but often overlooked credit lets you claim up to $1,000 ($2,000 for married couples filing jointly). You can qualify in 2025 if your adjusted gross income stays under $38,250 for single filers, $57,375 for head of household, or $76,500 for joint filers.
3. HSA Catch-Up ContributionsYou can put up to $4,300 for individual coverage or $8,550 for family coverage in a Health Savings Account in 2025. People 55 and older can add an extra $1,000 yearly as a catch-up contribution.
4. Retirement Account Catch-Up ProvisionsAnyone 50 or older can make extra “catch-up” contributions up to $7,500 yearly to their 401(k) or similar plans, on top of regular contribution limits.
5. Home Sale Tax ExclusionYou can exclude up to $250,000 ($500,000 for married couples filing jointly) of capital gains from selling your main home if you’ve lived there for at least two of the past five years.

Why These Tax Breaks Are Often Overlooked

Knowledge gaps stop millions of Americans from getting valuable retirement tax breaks every year. Only about half of U.S. workers know about significant benefits like the Saver’s Credit. This number drops to 44% in households making under $50,000 per year – the very people who need it most.

Good planning and awareness can help you increase your tax-free retirement income. Learning which benefits apply to your situation is a vital first step to make the most of these opportunities.

How to Maximize These Breaks for Tax-Free Retirement Income

Smart retirement planning needs a good strategy to get the most from your tax breaks. You’ll get better results when you time your contributions right and know the qualification rules.

Self-employed people need to do some extra math. Your calculations should go beyond just taking a percentage of your Schedule C net profit. You’ll need to subtract:

The deductible portion of your self-employment tax

Your own retirement plan contribution

Life insurance policies that follow IRS code 7702 offer a smart way to manage taxes. These policies let you take zero-net loans each year, which could put you in a lower tax bracket.

New retirement planners should talk to their tax advisors about Roth conversions. This strategy works best when your current tax bracket is lower than what you expect in retirement.

Your state’s tax rules matter too. Each state has different rules about taxing Social Security, pensions, and retirement funds.

Conclusion

We have a strong team of professionals helping ensure you receive all the assistance you need not only in developing your retirement income strategy, but in maintaining it throughout your retirement. Contact us today at 559-230-1648 or visit us today at Soutas Financial to see how we can help you Retire ”Your Way!”

Other Related Articles on retirement planning

Investment advisory services offered through Foundations Investment Advisors, LLC, an SEC registered investment adviser. The commentary on this website reflects the personal opinions, viewpoints, and analyses of the author, Soutas Financial, and should not be regarded as a description of advisory services provided by Foundations Investment Advisors, LLC (“Foundations”), or performance returns of any Foundations client. The views reflected in the commentary are subject to change at any time without notice. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security, or any security. Foundations manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Foundations deems reliable any statistical data or information obtained from or prepared by third party sources that is included in any commentary, but in no way guarantees its accuracy or completeness.

 

The post Hidden Retirement Tax Breaks You Must Claim This Summer appeared first on Soutas Financial.

source https://soutas.com/hidden-retirement-tax-breaks-you-must-claim-this-summer/

How to Plan Your Vacation Forever: The 2025 Summer Guide to Smart Retirement

That dream of a permanent vacation isn’t just wishful thinking—it’s a smart way to plan your retirement that can boost your success chances by a lot. The numbers back this up: 76% of people who write down their retirement goals achieve them. Only 43% of those who skip this step reach their targets.

You’ve probably seen retirees wearing those “vacation forever” t-shirts. This idea runs deeper than just a funny message. Your financial planner in Fresno CA understands that your retirement plan needs more than just a 401(k). You should think over Social Security benefits, permanent life insurance policies, and create a clear picture of your ideal retirement lifestyle.

Define Your Ideal Retirement Lifestyle

A successful retirement plan starts with a clear picture of your ideal future. Many people wear those “vacation forever” shirts as a joke, but creating a meaningful vision needs deep reflection about what truly matters to you. You should ask yourself some basic questions: When do you want to retire? What lifestyle do you foresee?

Your mind’s eye can be a powerful planning tool. Picture an ordinary day in your future retirement—from morning until bedtime. Think about where you’ll live, what activities will fill your schedule, and who will be around you. These mental pictures will help guide your financial decisions toward supporting the lifestyle you want.

Build a Financial Plan That Supports Your Vision

Your “vacation forever” dream needs solid financial backing now that you can foresee your ideal retirement lifestyle. That catchy phrase on your vacation forever shirt won’t pay the bills—a well-structured financial plan will.

Financial experts suggest you’ll need about 70-80% of your pre-retirement income to sustain your lifestyle. A detailed budget should account for all potential expenses. Healthcare deserves extra focus beyond basic costs like housing, food, and transportation.

Here are some options to protect your retirement savings:

Insurance solutions: Traditional long-term care insurance, hybrid policies, or life insurance with long-term care riders can help minimize catastrophic healthcare costs.

Health Savings Accounts (HSAs): These accounts offer tax-free savings specifically for healthcare expenses, though you must fund them before Medicare enrollment.

Diversified income streams: Multiple retirement income sources through Social Security, pensions, retirement accounts, annuities, and income-producing investments can provide security.

Test and Adjust Your Retirement Plan

Making a budget looks simple on paper, but sticking to it is a different story. The “vacation forever” lifestyle you see on retirement shirts needs full testing before you jump in. You’ll likely spend 70-80% of your pre-retirement budget after you stop working. That’s why it’s important to check if your plan works in ground conditions.

Several apps and software programs can help track and sort your spending during this testing phase. These tools show where you might need to make changes. You’ll quickly spot lifestyle adjustments needed before your permanent “vacation forever” starts.

Here are some strategies to add flexibility to your retirement plan:

Set discretionary spending as a range instead of fixed amounts

Keep a financial cushion for unexpected costs

Set up alternative income through part-time work if needed

Successful retirement planning needs constant fine-tuning. Your “vacation forever” depends on your steadfast dedication to watching, testing, and improving your approach as life changes.

Conclusion

We have a strong team of professionals helping ensure you receive all the assistance you need not only in developing your retirement income strategy, but in maintaining it throughout your retirement. Contact us today at 559-230-1648 or visit us today at Soutas Financial to see how we can help you Retire ”Your Way!”

Other Related Articles on retirement consultant

Investment advisory services offered through Foundations Investment Advisors, LLC, an SEC registered investment adviser. The commentary on this website reflects the personal opinions, viewpoints, and analyses of the author, Soutas Financial, and should not be regarded as a description of advisory services provided by Foundations Investment Advisors, LLC (“Foundations”), or performance returns of any Foundations client. The views reflected in the commentary are subject to change at any time without notice. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security, or any security. Foundations manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Foundations deems reliable any statistical data or information obtained from or prepared by third party sources that is included in any commentary, but in no way guarantees its accuracy or completeness.

The post How to Plan Your Vacation Forever: The 2025 Summer Guide to Smart Retirement appeared first on Soutas Financial.

source https://soutas.com/how-to-plan-your-vacation-forever-the-2025-summer-guide-to-smart-retirement/