Spring has arrived here in the Midwest and we are happy to see the sun! In the 1st quarter we experienced expected volatility in equity markets that our market research team Strategas has addressed. We believe that volatile markets are a prime time to revisit our clients overall financial security and longevity of their assets. Working for Baird gives us access to high quality, sophisticated planning software to create a plan for an abundance of different financial situations.
A variety of factors have led to a reconsideration of what the retirement dream looks like and how it will be funded. Today's retirees not only face the traditional risks such as market fluctuations and inflation, but also newer risks such as outliving their assets and the increasing cost of health care. There are also the complex and ever-changing rules regarding how to access savings, and the tax rules associated with those accounts. And after a lifetime of accumulating assets, just knowing the most efficient way to use those assets is not always clear.
Understanding Income Sources: When you no longer have a paycheck, the biggest unknown is where your income is coming from, how are you paying your expenses? We can help you understand how Social Security, Pensions, Investment Income, etc. all come together.
Social Security: There are a lot of questions around Social Security and when to activate your benefits. We can run an analysis to help you understand the best ways to maximize your benefits.
Cash Flow Planning: Once you understand your income, we need to understand your expenses and upcoming cash needs. Revisiting cash needs annually allows us to make sure your income sources and investments are working for you in the most efficient manner.
Tax Considerations: How you pay taxes changes considerably when you are no longer working. We have access to tax planning software to help make sure how you are utilizing your income sources is as tax efficient as possible. Be sure to send us your 2024 tax return for review.
Retirement Healthcare: Because health care costs are a significant piece of a person's expenses during retirement, understanding the coverage available to them through Medicare is a critical component in the retirement planning process. Medicare can benefit one's family by providing comprehensive medical insurance coverage. However, Medicare can also be one of the most complex government programs to understand.
Charitable Funding: If continuing to fund your charitable interests once retired is important to you there are tax advantaged ways to build this goal into your overall plan and make sure even without an earned income you can contribute to your communities.
Effective retirement planning requires a proactive approach to saving, investing, and managing income sources to ensure a comfortable and secure retirement. It is never to early to start planning for retirement because tomorrow will become today in the blink of an eye. Reach out to our team if you are ready to start planning or to update your existing plan.
Other Updates:
Q1 Market Update and Selloff at the top of Q2:
Tariff and trade war brought an end to our most recent Bull Market in February 2025 and bringing us to the most recent selloff in early April. Included in this quarters blog is a recap of Q1 and thoughts on the selloff here at the start of Q2.
Team News: Michael and Brooke would like to introduce their newest daughter Blaise Marie Kendzicky. Blaise was born on February 16th and has taken a quick liking to her older sister Zelie. Both mom and Blaise are doing great and couldn’t have asked for a better outcome! Many blessings from the Kendzicky Family.
Upcoming Mailing: Trusted contact is a newer compliance requirement for our existing clients. A Trusted Contact is a person designated by an account owner who can be contacted by Baird under specific circumstances. This includes situations where there are issues regarding the client's contact information, health status, or if there is a reasonable belief that the client may be a victim of fraud or exploitation. The Trusted Contact is not a substitute for a Power of Attorney (POA) but serves as an additional resource for communication. Additional details and a form will be sent to any clients missing this information.
We are Remodeling: Construction is still underway at Baird Mishawaka but is making great progress! We are currently, completely closed to clients, but our staff is still here to help with your needs. We should be back open in June.