Strategy Updates

Over 10,000 Americans each day are turning 65 years old. For many of these individuals, retirement is an ongoing discussion and concern. At Churchill Management Group, we help our clients develop a written financial plan to help them successfully enjoy their retirement years. 


1) Decide how you are going to spend your time. What are you going to do during the first year of retirement and what do you plan to do for the next chapter of your life? 

2) Calculate how much money you will spend each month. Plan for periodic expenses including house maintenance, vacations, taxes, vehicles, and emergencies. 

3) Add up your sources of retirement income. You have already figured out what you’ll spend on a monthly basis. Now figure out where that money will come from.

4) If still carrying a mortgage, consider a refinance or pay off your mortgage. Many people are surprised to discover that they either cannot borrow money after their retirement or they are forced to pay higher rates. Also, depending upon the type of loan you are carrying, in a rising interest rate environment, it may make more sense to pay off your mortgage if feasible.

5) Plan for future increased costs of health care. Medicare and private insurance will likely not cover all of your medical expenses.  

6) Boost your cash reserves. Make sure your rainy day fund is enough to cover at least 6 to 12 months of expenses. 

7) Evaluate your retirement investment strategy. While preparing for retirement, you were focused on asset accumulation. When you’re in retirement, you need to focus on capital preservation, income, and keeping pace with the increasing cost of living.  

8) Review your estate plan.  Examine your will and trust. Don’t have them? Get them. These documents can protect you and your assets while you are alive and benefit your spouse and heirs when you pass on. 

9) If you are not excited about retiring, then don’t. Some people quickly become bored after retiring. It’s also a great idea to pursue other interests and return to school or the workplace. Many do this, often in completely new fields. 

10) Lastly, develop a written financial plan. A plan will help you stay focused on your retirement goals and confirm you are not miscalculating any major financial elements.  

Contact a Churchill Management Group advisor at (877) 937-7110 or to help you take the next steps in developing a retirement plan. 

Written by Scott Perkins, MSTax, MBA, CFP® Director of Financial Planning

On December 29, 2022, President Biden signed into law the Secure Act 2.0. The Secure Act 2.0 contains over 100 legislative updates, with several that may have a meaningful effect on our clients. Some of these updates take place this year 2023, however, many are not effective until future years. Below is a summary of the more impactful changes. 

Age Changes for Required Minimum Distributions (RMDs) – Effective 2023

Effective January 1, 2023, the RMD age increases to 73 from 72. RMD age increases again to age 75 for those born in the year or after 1960. If you are already of RMD age you will not be able to postpone your RMD.

Qualified Charitable Donations (QCD) age is not impacted, it remains age 70.5 for QCDs.

Reduced Penalties for Required Minimum Distributions (RMDs) – Effective 2023

SECURE 2.0 Act reduces the penalty for missing an RMD from a 50% penalty down to a 25% penalty. Under some circumstances, the penalty can be reduced further to a 10% penalty if fixed during the Correction Window outlined in the Secure Act 2.0.

New Roth Retirement Account Options – Effective 2023

Both SEP IRAs and SIMPLE IRAs will now be able to accept Roth contributions.

New Roth Employer Contribution Allowance – Effective 2023

For both employer matching and non-elective contributions, employer Roth contributions may be allowable for qualified retirement plans.

New 529 Rules Allowing Balance to be Rolled into Roth IRAs – Effective 2024

Some 529 plans may be allowed to be rolled over to Roth IRAs. However, there are some limitations including the 529 account must be older than 15 years and the total lifetime rollover cannot exceed $35,000.

IRA Catch-up Contributions Now Tied to Inflation – Effective 2024

IRA catch-up contributions will soon be tied to inflation in $100 increments.

Larger 401(k), 403(b) and SIMPLE IRA Catch-up Contributions – Effective 2025

401(k) and 403(b) catch-up contributions for people ages 50 and older will increase to the greater of $10,000 or 50% more than the regular catch-up amount if you are 60, 61, 62, or 63 years old.

Expanded Access to Retirement Accounts For Special Circumstances – Effective 2023

Access to retirement for funds at age 50 without penalty now applies to certain employees such as firefighters and correction officers.This also applies to individuals who have worked at the same company for over 25 years.

Access to retirement funds without penalty has expanded to individuals in qualified Federal disaster areas. Repayment is required within three years.

Access to retirement funds without penalty has expanded to individuals with a terminal illness. Terminal illness is now expanded to 84 months. Repayment is required within three years.

Talk to your Churchill advisor for more details on how to maximize your retirement accounts and work with your tax preparer for tax planning and final tax advice. 

Summarized by Director of Financial Planning: Scott Perkins, MSTax, MBA, CFP® 

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