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Joe Lucey

What’s Your Tax Plan B?

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There’s something about summer that stirs up that little travel bug within our Minnesotan hearts. Whatever your preference – cabin weekend, road trip, or flight to the coast – ‘tis the season to pack up and go!

Of course, summertime travel around here means one thing: construction. Even a route you’ve traveled a thousand times over may require a detour. Suddenly, traffic’s backed up and you’re searching for another way. 

As any good traveler knows, flexibility is your friend. You adjust. And sometimes, if you’re lucky, you’re onto a better adventure than the one you’d originally planned. Maybe that’s a scenic overpass, the best burger joint in town, or The Biggest Ball of Twine.

It’s always smart to have a Plan B to accompany your Plan A.

The same principle applies to your retirement planning; especially right now, as a new tax bill winds its way through the legislature. While things are still being added and removed, Trump’s proposed legislation would make some significant portions of the 2017 Tax Cuts and Jobs Act permanent. Things like the larger standard deduction, lower tax brackets, and higher gift and estate tax exemptions could be here to stay.

For retirees in particular, that could mean some welcome tax relief, especially when it comes to Social Security benefits.

However, as you may have seen this week, negotiations are still underway, and details will change. So, while we’re hopeful about what’s ahead, we just don’t know how next year’s tax situation will shake out. Your finances are going to need a Plan B to accompany your Plan A.

At Secured Retirement, we’re already working with clients to model both possibilities. What if the tax cuts are extended? What if they’re not? What if your taxable income shifts? What if your deductions change? We’ll walk you through each scenario and help you build a plan that holds up either way. 

Tax strategies are about timing, flexibility, and positioning your assets to weather the unknowns.

Let’s make sure you’re set for the road ahead – whatever detours may come. Call us: 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.

The Financial Consequences of a Long Life

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Just in the past week, a new world’s oldest person has been crowned. Ethel Caterham of the UK is 115 years old and she doesn’t see what the big fuss is about. She attributes her longevity to the fact that she never argues with people and just does what she wants. 

More and more people are reaching these huge birthday milestones. We’re living longer than ever before. Advances in medicine, nutrition, and lifestyle awareness mean many of us will enjoy longer lifespans than our parents or grandparents ever did.

The Pew Research Center reports that the number of people who will live to 100 is expected to grow eightfold over the next 30 years. So, by 2025 there will be more than 3.7 million people over the age of 100 by 2050! That could be exciting or terrifying, depending on your perspective. And it certainly brings to mind some pressing financial questions.

A long and fulfilling life is something most all of us hope for. But a long life also creates an evolving financial situation – especially relative to retirement. As you plan for the long, fulfilling life you still have ahead of you, here are the six expenses to consider:

1. Higher healthcare costs

The longer you live, the more healthcare you’re likely to need – and the more you’ll pay for it. Routine checkups, ongoing prescriptions, unplanned surgeries or medical interventions, it can pile up extremely fast. Medicare does help to cover some costs, but it doesn’t often cover everything. Most retirees still face premiums, copays, deductibles, and potentially large out-of-pocket costs for dental, vision, hearing help, and specialty treatments.

Hold on to your hats while we deliver this news: Medical costs tend to rise faster than inflation. Now, THAT’s a tough pill to swallow. To prevent healthcare costs from quietly chipping away at your retirement savings, start budgeting for cost increases or planned for additional coverage through supplemental insurance or a health savings account.

2. A greater need for long-term care

Living well into your 80s, 90s, or beyond increases the odds that either you or your spouse will need a little extra help with the day-to-day at some point. In the event that you can’t quite talk your children into the arrangement, you’ll likely need to pay for help at home or spend time in an assisted living facility. And those services don’t come cheap.

Costs can vary significantly according to location and level of care, but no matter the specifics, care is expensive – do not underestimate its costs. Many people make the mistake of assuming they’ll never need it or that somehow it will be fully covered. Planning ahead can help ensure that your future care won’t drain your savings or burden your loved ones.

3. More exposure to market volatility

Over a 30-year or more retirement, you’re likely to experience multiple market cycles – and likely some larger downturns. And if you’re relying on investments to generate income, those rough patches do have the potential to do real damage, especially if you’re forced to sell off some assets to cover living expenses.

That’s why it’s so important to not only invest wisely in the first place but to also have a plan to protect your income from timing risk. Diversifying your income sources, building in safeguards, and having a strategy for withdrawing funds during volatile markets can all help preserve your nest egg through the ups and downs.

4. Risk of outliving your money

It’s a simple formula: a longer retirement means you’re drawing from your savings for a longer period. Even with a healthy portfolio, that creates risk – especially if your spending outpaces your investments and other income sources.

If you end up being one of those rumored centenarians (100+ year-olds) that are to proliferate, then you’re looking at a nearly 40-year stretch where you’ll need to pay for housing, food, travel, insurance, and unexpected expenses. If your plan isn’t designed with longevity in mind, you could find yourself scaling back your lifestyle (boo), or even running out of funds altogether.

5. Inflation eats into your buying power

Even modest inflation can significantly erode your purchasing power over time. We shudder to imagine it, but a gallon of milk costing $3 today might well cost $6 or more in 20 years. Groceries, utilities, travel, and services, will add up quickly when you’re spending 2025 dollars in 2055 – and especially on a fixed income.

Planning for inflation doesn’t just mean investing in growth, it means accounting for rising costs in your retirement budget. Failing to do so could result in having to reduce your quality of life down the road just to keep up.

6. Helping loved ones adds pressure

Sometimes, needs beyond your own can affect your retirement. Many retirees find themselves helping adult children with bills, covering grandkids’ education expenses, or supporting their own aging parents. These acts of generosity are done out of love, of course, but they can also strain your financial plan if they weren’t part of it from the start.

It’s not uncommon for people to dip into their retirement accounts to help a family member during a tough time. But without a solid plan, even well-meaning gifts or loans can jeopardize your own security. Finding a balance between helping others and protecting your own future is essential.

You Need A Plan You Can Count On

No one wants to reach their 80s, 90s, or even 100s with plenty of life in them but without the funds to enjoy it. However, you don’t have to leave it to chance.

With the right planning, you can extend your savings, protect yourself from rising costs, prepare for what’s next, and enjoy your dream retirement. That means building a flexible plan that evolves with you. Living longer is a gift! Let’s make sure you’re financially prepared to enjoy it! Give us a call: 952-460-3290.

4 Critical Things to Know Before Claiming Social Security

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Claiming Social Security is one of the most important financial decisions of your life. The choices you make can have a lasting impact on your retirement income, taxes, and even your spouse’s benefits.

If you’ve earned an average income over your career, you could receive several hundred thousand dollars in lifetime benefits. And if you’ve earned an above-average income, you could collect well over a million dollars. That’s a sum so significant you simply can’t leave it to chance.

But Social Security is complicated. There are thousands of rules, and even more rules about those rules. Many people make costly mistakes that reduce their benefits and increase their taxes. To help you make the most of your Social Security, here are four essential things you need to know before filing.

1. Don’t Rely on a One-Size-Fits-All Strategy

The timing of when you claim benefits affects more than just the amount you receive each month. Your decision could also trigger higher taxes, double your Medicare premiums, and cause you to forfeit a small fortune in spousal benefits.

Some retirees assume delaying benefits is always the best move, but that’s not necessarily true. In some cases, claiming your Social Security benefits early could yield far more income when you consider your benefits, taxes, etc. Depending on your tax situation, other income sources, and life expectancy, claiming earlier could result in more lifetime income. The right strategy depends entirely on your personal financial situation.

2. You Could Be Taxed on Up to 85% of Your Benefits

One of the biggest Social Security “gotchas” is taxes. Depending on how and when you claim benefits, up to 85% of your Social Security income could be taxable. That means the money you were counting on for retirement could be significantly reduced once the IRS takes its share.

Strategic tax planning can help minimize that impact. By coordinating withdrawals from tax-advantaged accounts or spreading out income sources, you may be able to reduce the percentage of your benefits subject to taxation.

3. Your Spousal Benefits Could Be at Risk

Most people don’t understand how to make the most out of their Social Security spousal benefits. And with so many variables at play, it’s no wonder! No matter your current marital status – married, divorced, or widowed – spousal benefits can significantly impact your total retirement income. The timing of when you and your spouse claim benefits matters. Be sure to consider all of your options before making a final decision.

4. Don’t Rely on the Social Security Administration for Advice

The Social Security Administration (SSA) provides a number of valuable resources, but their representatives simply aren’t financial advisors. They’re there to communicate facts and policies, not to help you maximize your benefits.

We’ve heard plenty of stories about people who file for benefits at the direction of the SSA and end up short-changing themselves or their spouses hundreds of thousands of dollars. It’s extremely unfortunate when this happens, and we want to do whatever we can to prevent things like this from happening. Financial professionals like Secured Retirement exist to lay out all the options. Make sure you understand yours.


Ensure You Make the Right Choice

Claiming Social Security is more complex than most people realize. Your decision impacts many other aspects of your financial game plan, like your tax liability, Medicare costs, and spousal benefits.

Rather than guessing about what you need, get a customized Social Security analysis from a qualified financial advisor, like Secured Retirement. Call us today and get started on your analysis: 952-460-3290.

The Most Romantic Gift You Can Give

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Well, another Valentine’s Day has come and gone. By now, the flowers are starting to wilt, the chocolates have mysteriously disappeared, and that expensive dinner is little more than a mark on your credit card statement.

I don’t mean to sound cynical! But it does make me wonder, what if there was a gift that didn’t fade away after a few days? What if there was a gift that lasted years, in fact? Decades even? A gift that truly says “I love you” in the most meaningful way?

Are you on the edge of your seat?! Ahem, drumroll, please! 

It’s. . . 

Life insurance! 

That’s right, folks. Life insurance, I’d argue, is one of the most romantic AND practical gifts of all. Not exactly what you had in mind? Let me make my case. 

It’s probably not the kind of thing you’ll find on the “Best Valentine’s Gifts for Her” list, true. But life insurance is a promise. 

It shows you’re thinking long-term, that you’re committed to protecting the people you love, and that your support will continue no matter what happens. 

Everyone has a slightly different reason for buying life insurance. But at the heart of it, insurance is about providing financial security for your loved ones. It ensures they won’t be burdened with debt, covering everything from mortgage payments to daily living expenses. And that kind of stability? Now, that’s romance, baby!

So, if you’re a little ho-hum about a lack of chocolate this year, or you just want to give a gift that truly lasts, consider life insurance next time around. 

It’s a gesture that means more than any bouquet ever could.

At Secured Retirement, we’re here to help you build a plan that protects your family, your future, and your legacy. Trust us – there’s nothing more desirable than financial security, especially in retirement. 

Lots of love,

Joe

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.

Why Diversifying Your Income is Critical in Retirement

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Financial headlines over the past couple years have painted a troubling retirement picture at times: Medicare’s trust fund is running out, Social Security has tapped into reserves, and the country’s experienced pension shortfalls. Unfortunately, these concern aren’t simply abstract – and while they are tomorrow’s problem, they may directly affect the stability of your retirement income.

For those relying on Social Security, Medicare, pensions, or stock market investments to sustain retirement, these uncertainties pose do serious risks. If these institutions do really continue struggling, a best-case scenario could require adjustments to lifestyle and spending. Worst case, it could mean delaying your retirement or (worst worst case) even returning to work.

You know by now that a secure retirement isn’t built on a single source of income. Diversification is key. Understanding how to generate income from multiple sources can help ensure financial stability, even when the economy is unpredictable. With proper planning, it’s possible to navigate challenges with Social Security and Medicare, create alternative income streams, and establish a resilient financial foundation.

Even more so than savings or total assets, income often determines long-term security in retirement. Market fluctuations are inevitable – they happen –, but a well-structured income strategy provides stability.

Without one, many retirees risk running out of money when they need it most. The solution is an income plan, a diversified one. Relying too heavily on any single source of income creates vulnerability. Instead, a mix of reliable income streams can provide both security and flexibility.

The most solid retirement income plans include a mix of these potential income sources:

  • Dividend Stocks – Established companies often pay dividends to shareholders, providing consistent cash flow.
  • Investment-Grade Corporate Bonds – Bonds issued by financially strong companies can offer steady income while balancing risk.
  • Municipal Bonds – Some municipal bonds provide tax advantages, exempting interest payments from certain taxes.
  • Real Estate Investment Trusts (REITs) – These funds generate income by owning and managing properties, offering an alternative to direct real estate investment.
  • Reverse Mortgages – Home equity can be converted into income while retaining ownership of the property.
  • Rental Properties – Investing in residential or commercial real estate can create ongoing revenue, especially if you have strong local market knowledge.

There’s no single strategy or combination that’s foolproof for all. Many factors shape the right approach for your situation. Differences in age, assets, risk tolerance, and life expectancy are all things that can shift the dial. Your personalized plan can ensure financial security, regardless of economic shifts, and with Secured Retirement, we can get you there.

Contact us today to plan your income in retirement: 952-460-3260.

Making 2025 Count

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Greetings to you from the lull between Christmas and New Year’s, the purgatory of the holiday season where, if you’re lucky, you can enjoy a bit of time to recharge and reflect before ringing in the new year.

Let me ask you, are you someone who sets resolutions? Resolutions are a time-honored concept, but personally, I find it difficult to gain much traction with them unless I think of them as goals. And SMART goals are where the real magic happens.

In my mind, here’s how they differ: Resolutions are things you muscle through with sheer willpower for a couple of weeks each January. Goals come with a plan and intention. SMART goals involve planning done with the help of specifics, measurability, achievability, relevance, and time-sensitivity. They’re the kind of goals that transform wishful thinking into real progress.

If you’re trying to better yourself in 2025, I admire you. Change is achievable when you define what success looks like. Change is more likely when you align your goals with your own personal values.

You’re most motivated to achieve goals that naturally jive with what’s most important to you. Maybe that’s why my weight loss goals never make it very far – my values align more with eating good than defining my waistline.

Jokes aside, this time of year is perfect for reflecting on your beliefs and how they shape your priorities.

At our house, we’ve been having a lot of those conversations lately as we weigh college decisions for my son. What’s best for him? What fits with our family’s goals and values? And, of course, what works with our finances?

Planning for the future – for college, retirement, or any personal milestone – requires balancing dreams, realities, and priorities. My two cents? Take some time to define your goals, make them actionable, and ensure they align with the way you see the world.

Looking into 2025, the same approach applies to financial planning. At Secured Retirement, we work to create a roadmap that reflects your values whatever they may be – protecting your family, giving back to your community, or embracing life’s adventures in retirement.

In the space of this season, take some time for consideration. And may your 2025 be filled with wealth, health, and happiness. We’re rooting for you!

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.

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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!