Tuesday, April 23, 2024

Navigating the Path to a Secure Retirement: Sharing Derek Pesta’s Solution

Retirement planning, a concept often pushed to the faraway horizon, can swiftly become a pressing reality. As financial pundits sound alarms about a supposed “retirement crisis,” it’s crucial to understand that the onus of securing your retirement largely rests in your hands.

It is important to realize that retirement planning isn’t a distant concern. Instead, it’s a present-day necessity. However, many individuals find it challenging to envision and prepare for retirement. According to a study by the Insured Retirement Institute, a staggering 45% of baby boomers haven’t saved a penny for their retirement. The future may seem uncertain, but taking proactive steps can make all the difference.

Even though retirement planning is pertinent, it is not free of hurdles. The finance world is very complex. And a little misstep can lead to great losses. That’s where the experience of financial professionals comes in. They can assist you in planning your savings and investments for retirement.

For example, Derek Pesta, the CEO and Financial Advisor of Pesta & Pesta Wealth Management, claims to offer tailored finance planning services that cater to individual retirement goals. The company offers a suite of services in a bid to help people enjoy their retreat from worklife.

Before we explore how financial managers, like Derek, can assist in creating robust retirement plans, let’s first examine the challenges in retirement planning.

Some of the key challenges include:

  1. Taxes:
    Navigating the complex tax implications of Social Security benefits is crucial. Up to 85 percent of your Social Security income can be taxed, making tax efficiency essential. A trusted financial advisor can help you optimize your tax position and minimize your tax liability.
  2. Spousal Benefits:
    Understanding and leveraging spousal benefits is often missed but vital in retirement income planning. These benefits were designed to provide support to non-working spouses, even in cases of divorce or the death of the working spouse. A finance planner ensures that you don’t miss out on these valuable resources.
  3. Inflation:
    Inflation erodes the purchasing power of your retirement savings. This means that your retirement income needs to keep pace with rising costs. A well-structured financial plan can address this challenge.
  4. Medicare and Social Security:
    While Medicare and Social Security are significant components of retirement planning, they are not your sole retirement plan. Understanding how to optimize these resources and avoid overpaying requires skills which professional managers possess.
  5. Risk Tolerance & Downside Protection:
    Market volatility can pose a massive risk to your retirement savings. Having a portfolio with adequate downside protection is crucial to weathering economic downturns. That’s why it is important that your wealth manager tailor your investment strategies with your risk tolerance and financial retirement goals in mind.

At Pesta & Pesta Wealth Management, Derek and his team claim to tackle every hurdle mentioned above. Besides that, Derek believes that the highlight of his practice is working in the best interest of his clients.

We provide you with a wide variety of investment options that align with your goals. We always act in your best interests, which means your goals drive your investments – and not the other way around,” says Derek.

He aims to achieve this by following a 5-step process:

  1. Setting Clear Goals:
    The foundation of any retirement plan begins with a clear understanding of your financial objectives and retirement goals.
  2. Assessing Assets:
    A thorough examination of your current assets and retirement income sources encompasses pensions, 401(k)s, and Social Security.
  3. Identifying Potential Leaks:
    Just as a flat tire needs to be patched to maintain optimal performance, your retirement plan may have leaks. Identifying these leaks can help you in optimizing your retirement plan. Derek identifies these issues, including social security, tax inefficiencies, and more.
  4. Tax-Efficient Planning:
    Optimizing your tax strategy is vital, particularly regarding social security benefits. His team ensures you stay within appropriate tax brackets that try to minimize the potential IRMAA medicare surcharge.
  5. Balancing Risk:
    Derek strives to tailor your investment strategies to your risk tolerance, goals, and stage of life, providing necessary downside protection.

Retirement planning is a lifelong journey that demands foresight and expertise. Derek Pesta and his team at Pesta & Pesta Wealth Management strive to empower individuals to navigate this path effectively. By addressing common challenges, they guide their clients toward a secure retirement.

To learn more about Derek’s financial planning services, visit his firm’s website.

Investment Advisory services are offered through CWM, LLC an SEC Registered Investment Advisor. Carson Partners, a division of CWM, LLC, is a nationwide partnership of advisors.

This piece is not intended to provide specific legal, tax, or other professional advice. For a comprehensive review of your personal situation, always consult with a tax or legal advisor.


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