Most people need enough retirement savings to replace about 70–80% of their pre-retirement income. The exact amount depends on lifestyle, retirement age, healthcare costs, taxes, and longevity.

Carrying debt and spending on food are two expenses retirees often underestimate. Groceries, dining out, and meals during travel or social activities can add up quickly especially when put on a credit card. Food prices have experienced periods of higher inflation than the overall average, so it’s important for a retirement plan to include a specific line item for food expenses rather than relying on a general estimate.

A common benchmark is to save about 1 times your salary by age 30, 3 times by 40, 6 times by 50, and 8–10 times by age 60. These are broad guidelines and may vary depending on your goals, income, and when you started saving. Consistency and long-term investing often matter more than matching a specific dollar amount.

Retirement becomes possible when your savings and income sources can consistently cover your living expenses while still allowing room for discretionary spending. A financial plan helps evaluate whether your investments, Social Security, and other income streams can support your lifestyle throughout retirement.

The 4% rule is a retirement guideline suggesting that retirees may withdraw about 4% of their portfolio in the first year of retirement and adjust that amount annually for inflation. This rule is commonly referenced in retirement planning, but it is only a guideline—not a guarantee. Withdrawing a fixed percentage each year can create a false sense of security because retirement expenses often change over time. Healthcare and long-term care costs in later years, along with market performance and inflation, can significantly impact how long savings last. Negative returns in the first few years of retirement can also dramatically affect a plan that’s based solely on a fixed percent.

The better question is: Do you want to maximize income or permanently take a reduction? Benefits can begin as early as age 62, but claiming at this early age permanently reduces monthly income by up to 30%.

Waiting until age 66–67 (standard monthly benefit age) or as late as age 70 (maximum monthly benefit age) can significantly increase your income and that of a surviving spouse in the future.

Yes, Social Security benefits may be taxable depending on your total household income in retirement. Up to 85% of benefits may be subject to federal income tax if your combined income exceeds certain thresholds.

Current tax laws provide for a temporary senior deduction, but do not change the taxability of this benefit for now.

Social Security retirement benefits are based on your lifetime earnings history. The program looks at your highest 35 years of earnings, adjusts those earnings for inflation, and calculates an average monthly amount. A formula is then applied to determine your base benefit, often referred to as your Primary Insurance Amount (PIA).

Two of the biggest factors affecting your benefit are inflation adjustments applied to past earnings and the age at which you begin claiming benefits. Claiming earlier generally reduces the monthly amount by up to 30%, while delaying benefits can significantly increase it.

For more detailed information and examples of how benefits are calculated, visit the Social Security Administration website.

Planning for taxes in retirement begins 5-10 years prior to retirement. Coordinating withdrawals from taxable, tax-deferred, and tax-free accounts should be carefully planned and timed to the various stages of retirement. Using Roth conversions, charitable giving, and legacy planning carefully can assist with paying what is right in taxes - not paying more than you should.

Required minimum distributions are mandatory withdrawals from tax deferred accounts (ex. 401k, 457, 403b, IRA). Deferral of taxes means money went in without being taxed during your career and will be taxed later when you take it out.  Because taxes haven't been paid all of those years, the IRS requires withdrawals to begin at age 73 or 75 (depending on when you were born). When these withdrawals are taken, they are fully taxable as ordinary income.

A Roth conversion may make sense if you expect higher tax rates later on or want more tax-free income in retirement. Converting means moving tax deferred money (ex. 401k, 457, 403b, IRA) to tax free money (ex. Roth IRA), paying income tax on the converted amount at today's lower tax rate versus at potentially higher tax rates in the future. 

Diversification means spreading investments across different asset classes, industries, and geographic regions to help reduce risk. The goal is to avoid relying too heavily on any single investment or market segment.

A well-diversified portfolio helps smooth out performance over time, as different investments may respond differently to market conditions—so one area may help offset another during periods of volatility.

Asset allocation is the mix of stocks, bonds, cash, and other investments in your portfolio. The appropriate allocation depends on your financial goals, timeline, and comfort with market risk.

It’s one of the primary drivers of how a portfolio behaves over time—balancing growth and stability based on what you’re trying to achieve.

Many long-term investors continue investing during market volatility to stay aligned with their long-term plan. Market declines and fluctuations are a normal part of investing.

Continuing to invest during these periods may allow you to buy at lower prices and stay consistent with your strategy, rather than trying to time short-term market movements.

A financial advisor is someone who builds a trusted relationship with you—understanding what matters most about your money, your lifestyle, and the legacy you want to leave. They provide strategies tailored to you and your values, while coordinating with other professionals (CPAs, estate attorneys, etc.) to create a team focused on your full financial picture.

Financial advisor costs vary depending on the level of services provided and the structure of the relationship. Some advisors are fee-based, meaning they charge a percentage of assets under management, while others use flat planning fees or project-based fees, or a combination of both. The most important feature is that all costs are transparent and discussed before signing any documents.

For many, the value of working with a financial advisor comes from having an objective, steady perspective—especially when emotions can run high around money. Because an advisor is not emotionally tied to your investments and past experiences, they can help bring clarity and consistency. Advisors also draw from experience across many clients, allowing them to share patterns, lessons, and insights that are often difficult to see on your own.

The best retirement plan depends on what you want the plan to do for you as a business owner. Maximizing your personal retirement savings? Improving tax efficiency? Enhancing benefits for your team?

For owners looking to save more and reduce taxes, more advanced plan designs—such as a 401(k) paired with profit sharing or a cash balance plan—can allow for significantly higher contributions while maintaining a structured approach for employees. When designed properly, these plans can shift dollars from taxes into long-term savings. The goal isn’t just to have a plan, but to structure one that works intentionally for you, your business, and your team.

Each state has it's own regulations. Many now require businesses of one or more employees to either offer a qualified retirement plan or register for a state-sponsored program. If your business resides in a state requiring a retirement plan or registration, you must take action to avoid significant penalties.

In states without mandates, many business owners choose to implement a plan as a way to create tax-efficient savings for themselves and the company as well as provide a strong recruitement and retention benefit for their team.

Common employer retirement plans include SIMPLE IRA, SEP IRA, 401(k), Safe Harbor 401(k), Profit Sharing Plans, and Cash Balance Plans.

SIMPLE IRA — A straightforward plan that allows both employer and employee contributions, with significantly lower contribution limits and minimal administrative requirements. It is designed to be easy to establish and maintain.
SEP IRA — An employer-funded plan with flexible contribution amounts per year. Contributions are made only by the employer and do vary based on profitability.
401(k) — A flexible retirement plan that allows employees to defer a portion of their salary while employers can match contributions up to a certain percentage. It offers higher contribution limits and more customization in plan design.
Safe Harbor 401(k) — A type of 401(k) that requires the employer to contribute in exchange for avoiding certain IRS testing requirements. This structure can make it easier for owners to maximize their own contributions.
Profit Sharing Plan — An employer makes optional or discretionary contributions to employees accounts based on business profitability. It is often paired with a 401(k) to increase total contributions and provide flexibility year to year.
Cash Balance Plan — A defined benefit plan that allows for significantly higher contributions. It can be structured to accelerate retirement savings especially for those that start saving later in life. It also is a powerful tax efficiency tool for the business.

Churches have unique retirement plan options at both the organization level and for clergy with income outside the church.

At the church level, common options include 403(b)(9) church plans and 401(a) plans, often used together within a broader “church plan” structure. These plans are typically exempt from ERISA, allowing greater flexibility in how contributions and eligibility are designed. 403(b)(9) plans are the most commonly used and is often the best option due to unique tax benefits and the ability to continue the ministerial housing allowance into retirement.

For bi-vocational clergy or those with outside income, additional retirement options may be available based on how that income is structured. This can allow for participation in a church plan while also contributing to a separate plan tied to outside or self-employed income. The goal is to coordinate these strategies so they work together—supporting the church’s objectives while helping clergy maximize retirement savings across all sources of income.

Many church plans are exempt from federal regulations (ERISA) including tax filings for the plan, disclosures, funding, and fiduciary standards which can allow for more flexibility in plan design and participation. Meaning discrimination testing, minimum employee work requirements, and the ability to choose which employees are eligible may not be required.

A major key difference is the minister’s housing allowance. Qualified clergy can and should be designating a portion of their income as housing allowance, providing tax-free income when used for eligible housing expenses. This important tax savings can continue into retirement. These key points are not available in traditional employer plans.

The Minister’s Housing Allowance allows eligible clergy to designate a portion of their income—both during active ministry and in retirement to housing expenses. When used for qualified expenses, this amount is excluded from federal and state income tax (but not from self employment taxes).

In retirement, distributions from 403(b)(9) plans can also be designated as housing allowance, provided they are used for qualified housing costs and properly documented. Because of the powerful tax benefits, the housing allowance is an important part of planning for pastors and ministry leaders and should be coordinated carefully within a full financial plan.