The Informed Investor

Retirement Planning During COVID-19: What to Know

January 12, 2021

You’d be hard-pressed to find an area of our lives that COVID-19 hasn’t impacted, and retirement planning is no exception. We watch the markets with bated breath as stocks plummet with new waves of infections and soar with news of successful vaccines. trials. It’s enough to make even the most confident investor feel on edge, but our team is here to help you make the right decisions to ensure that you’re able to retire comfortably. Here are some important points to keep in mind.

1. Reduce the Impact of Sequence-of-Returns Risk

When you’re retired and there is a downturn in the market, understanding sequence-of-returns risk is crucial. Simply put, sequence-of-returns risk refers to the risk of having to withdraw funds during a time when your portfolio is losing value, as often happens in a down market. Having to sell more shares to get the cash you need leaves you with fewer total shares to compound later.

We’ll help you devise a prudent strategy to protect your portfolio’s value by proposing withdrawals from more stable assets until the market improves. We will make recommendations on what to withdraw first, and subsequently. When you’re faced with the need to withdraw other investments, our team can assist you in making the right decisions.

2. Increase Your Retirement Contributions

If you are in a position where you can increase your retirement contributions, it would be wise to do so. Contribution limits for 401(k)s have been increased by the IRS to $19,500 in 2021, with $6,500 in catch-up contributions permitted for investors over the age of 50. If you have an IRA, you can contribute $6,000, with an additional $1,000 in catch-up contributions for anyone 50 or older.

The CARES Act has provided waivers on required minimum distributions this year, so if you’re already retired, you can keep your investments in the market for a longer period of time, which has the potential to increase their value. This is critical, as it allows you to avoid withdrawing funds during a down market and allows your funds to continue to grow in an upmarket.

3. Meet With Your Estate Planner

If you’re of retirement age, you’re also at higher risk from COVID-19, which means it’s a good time to meet with your estate planner and ensure that your will is up to date. One of our specialties at ICC is helping our clients transfer their wealth to the next generation and create a lasting legacy. We can work with your estate planning attorney to develop a strategy that plans for a smooth transfer of wealth according to your wishes and maximizes the impact of your wealth.

4. Take Advantage of Virtual Financial Planning Services

We offer all of our client’s quarterly meetings to discuss their needs, their portfolios and the economic outlook. The current environment makes such meetings more important than ever, but the need for social distancing also makes them difficult. ICC is pleased to offer virtual meetings and other online financial planning services for your safety and convenience. Stay current with the latest coronavirus developments and their impact on the market by bookmarking the COVID-19 resources page on our website.

Learn More About Retirement Planning With ICC

Whether you’re already retired or you’re still working to build your nest egg, we understand that the pandemic has created a great deal of uncertainty for many of our clients. You can feel confident knowing that ICC is hard at work researching market conditions and translating that knowledge into strategies that benefit you. To learn more about our retirement planning services, contact us today at 702-871-8510.

 

IMPORTANT DISCLOSURE INFORMATION
The Investment Counsel Company of Nevada (“Company”) is an SEC registered investment adviser located in Las Vegas, Nevada. Company may only transact business in those states in which it is registered or qualifies for an exemption or exclusion from registration requirements. Company’s web site is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of Company’s web site on the Internet should not be construed by any consumer and/or prospective client as Company’s solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet. Any subsequent, direct communication by Company with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. A copy of Company’s current written disclosure Brochure discussing Company’s business operations, services, and fees is available from Company upon written request. Company does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to Company web site or incorporated herein, and takes no responsibility, therefore. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.

Please remember that different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment or investment strategy (including those undertaken or recommended by Company), will be profitable or equal any historical performance level(s).

Certain portions of Company’s web site (i.e., newsletters, articles, commentaries, etc.) may contain a discussion of, and/or provide access to, Company (and those of other investment and non-investment professionals) positions and/or recommendations as of a specific prior date. Due to various factors, including changing market conditions, such discussion may no longer be reflective of current position(s) and/or recommendation(s). Moreover, no client or prospective client should assume that any such discussion serves as the receipt of, or a substitute for, personalized advice from Company, or from any other investment professional. Company is neither an attorney nor an accountant, and no portion of the web site content should be interpreted as legal, accounting or tax advice.

Please Note: Limitations: Neither rankings and/or recognition by unaffiliated rating services, publications, media, or other organizations, nor the achievement of any designation or certification, should be construed by a client or prospective client as a guarantee that he/she will experience a certain level of results if Company is engaged, or continues to be engaged, to provide investment advisory services. Rankings published by magazines, and others, generally base their selections exclusively on information prepared and/or submitted by the recognized adviser. Rankings are generally limited to participating advisers (see below as to participation data/criteria, to the extent applicable). Unless expressly indicated to the contrary, Company did not pay a fee to be included on any such ranking. No ranking or recognition should be construed as a current or past endorsement of Company by any of its clients.

ANY QUESTIONS: ICC’s Chief Compliance Officer remains available to address any questions regarding rankings and/or recognitions, including the criteria used for any reflected ranking. Please review Important Disclosure Information set forth in the last section of this website.

The Barron’s Top 1200 Financial Advisors by State ranking is based on data provided by over 4,000 of the nation’s most productive advisors. Factors included in the rankings are: assets under management, revenue produced for the firm, regulatory record, quality of practice, and philanthropic work. There is no cost or fee to participate in this survey. The questionnaire is completed and submitted online.

The Barron’s Top 100 Independent Advisors ranking reflects the volume of assets overseen by the advisors and their teams, revenues generated for the firms, and the quality of the advisors’ practices. The scoring system assigns a top score of 100 and rates the rest by comparing them with the top-ranked advisor. There is no cost or fee involved to participate in this survey. The questionnaire is completed and submitted online.

The Forbes “America’s Top Wealth Advisors” ranking was developed by SHOOK Research and is based on in-person interviews and telephone due diligence meetings and a ranking algorithm that includes client retention, industry experience, review of compliance records, firm nominations and quantitative criteria, including assets under management and revenue generated for their firms. Investment performance is not a criterion because client objectives and risk tolerances vary, and advisors rarely have audited performance reports. Rankings are based on the opinions of SHOOK Research, LLC and not indicative of future performance or representative of any one client’s experience. Rankings and recognition from Forbes are no guarantee of future investment success and do not ensure that a current or prospective client will experience a higher level of performance results, and such rankings should not be construed as an endorsement of the advisor. Neither Forbes nor SHOOK Research receives compensation in exchange for placement on the ranking.

The Forbes ranking of “Best-In-State Wealth Advisors,” developed by SHOOK Research, is based on an algorithm of qualitative criteria, mostly gained through telephone and in-person due diligence interviews, and quantitative data. Those advisors that are considered have a minimum of seven years’ experience, and the algorithm weights factors like revenue trends, assets under management, compliance records, industry experience and those that encompass best practices in their practices and approach to working with clients. Portfolio performance is not a criterion due to varying client objectives and lack of audited data. Neither Forbes or SHOOK receive a fee in exchange for rankings.