Don’t Let Bad Assumptions Shape Your Retirement Strategy
Retirement planning is full of myths—some are outdated, others are just plain wrong. Believing them can lead to under-saving, poor investment choices, or running out of money too soon. The problem? Most people don’t realize they’ve fallen for a myth until it’s too late to fix it.
Let’s clear up the most common misconceptions and make sure your plan is based on facts—not false beliefs.
Myth #1: “I’ll Spend Less in Retirement”
Many people assume expenses will drop in retirement. While you may no longer be commuting or paying for business lunches, other costs often rise.
- Travel and leisure spending usually increases
- Healthcare costs rise with age
- Inflation erodes fixed incomes over time
Retirement isn’t about cutting back—it’s about maintaining the lifestyle you want. A good plan factors in rising costs and changing priorities.
Myth #2: “Social Security Will Cover Most of My Needs”
Social Security is designed to replace only about 30–40% of your pre-retirement income. That might cover basic expenses—but it won’t support a comfortable lifestyle.
Relying too heavily on Social Security could leave you with a monthly shortfall. The rest must come from savings, pensions, or other income sources.
Our planning process includes strategies to maximize your Social Security benefits—but we always treat it as one part of the overall income picture.
Myth #3: “I Can Start Saving Later and Catch Up”
Delaying savings means missing out on years of compound growth. Even if you increase your contributions later, it’s hard to make up for lost time.
Example:
- Saving $500/month starting at age 30 = ~$600,000 by age 65
- Waiting until 40? You’d need to save more than double each month to hit the same target
We help clients start where they are and build a realistic ramp-up plan—but earlier is always better.
Myth #4: “I’ll Work Forever”
Some people plan to keep working into their 70s. But illness, caregiving responsibilities, or job loss can force early retirement.
Roughly half of retirees stop working earlier than expected—and without a plan, that creates serious financial pressure.
We help clients build flexibility into their plan so retirement is a choice—not a last-minute scramble.
Myth #5: “My 401(k) Is All I Need”
Employer-sponsored plans are a great start—but they’re rarely enough on their own. Contribution limits, fees, limited investment options, and lack of income planning tools make 401(k)s incomplete.
Diversifying with IRAs, brokerage accounts, and tax-efficient withdrawal strategies gives you more control in retirement. We help clients layer accounts to support long-term income and tax planning.
Myth #6: “I Don’t Need Professional Help”
Online calculators and robo-advisors offer basic projections—but they don’t know your full financial picture. They can’t:
- Plan for long-term care costs
- Optimize taxes across multiple accounts
- Navigate Social Security timing
- Adjust for changing goals and family dynamics
A personalized retirement plan adds real value—and helps avoid expensive mistakes.
Myth #7: “I’ll Need Less Than I Think”
Many retirees find they’re busier than ever—traveling, supporting grandkids, pursuing hobbies. Underestimating lifestyle costs is one of the fastest ways to deplete savings.
We help you create a spending plan based on your actual goals and the kind of retirement you want to live.
Build Your Plan on Facts, Not Myths
Retirement isn’t something you figure out at the last minute. The best outcomes come from thoughtful, proactive planning—built on real numbers and proven strategies.
At MB Wealth Advisors, we help you:
- Avoid common planning mistakes
- Create a multi-account strategy for taxes and income
- Model real retirement spending and healthcare costs
- Review and update your plan regularly
Whether you’re five years away or just getting started, we’ll help you stay on track.
Visit our Retirement Planning Services or call (704) 584-9363 to speak with our team. You can also reach out through mbwealthadvisors.com/contact/#connect.
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How College Planning Can Support Your Family Legacy Strategy
College Planning Is About More Than Tuition
When families think about saving for college, the focus is usually on minimizing student debt. But smart college planning does more than cover tuition—it’s a strategic move that protects your retirement savings, preserves your estate, and supports your family legacy.
Whether you’re a parent, grandparent, or business owner looking to help the next generation, your approach to college planning can strengthen your overall financial picture. And when coordinated with retirement, tax, and estate planning, it becomes a powerful part of your long-term legacy.
The Hidden Costs of Poor College Planning
College is one of the biggest expenses families face, yet few people plan for it properly. The result?
- Parents raid retirement accounts to cover tuition
- Students graduate with massive debt
- Wealth is shifted out of the household with no long-term benefit
Without a plan, education funding can disrupt every other financial goal—including retirement, home ownership, and business investments.
We help families build an education plan that supports—not competes with—the rest of their financial future.
529 Plans: A Smart Starting Point
One of the most powerful tools in college planning is the 529 plan.
Key benefits:
- Tax-free growth when used for qualified education expenses
- High contribution limits
- Can be used for college, trade school, and even K–12 tuition (in some states)
- Parents retain control of the account
You can also change beneficiaries within the family if one child doesn’t use all the funds. That means leftover savings can be redirected without penalty.
Coordinating College and Retirement Planning
One of the biggest planning mistakes is prioritizing college savings over retirement. There are loans for school—but not for retirement. Draining your 401(k) or IRA to pay for education can create long-term financial strain.
We help clients strike the right balance, including:
- Using income-based contribution strategies
- Evaluating financial aid eligibility
- Timing withdrawals to reduce tax impact
- Integrating college savings into your broader wealth strategy
The goal: pay for education without sacrificing your own future.
Estate Planning and Education Funding
Education gifts are a meaningful way to support your family legacy. Grandparents and high-net-worth individuals can use college funding to:
- Reduce the size of their taxable estate
- Make annual tax-free gifts using 529 plans
- Fund legacy trusts for education across multiple generations
Strategic gifting also helps control how and when the money is used—ensuring your support creates long-term value.
College Planning for Business Owners
If you’re a business owner, there are additional strategies to consider:
- Employing children in the business and paying wages that can be used to fund a Roth IRA or 529 plan
- Setting up education reimbursement programs
- Coordinating business succession with education gifts or trusts
College planning can serve as both a tax strategy and a way to pass on values and skills.
Beyond the Numbers: Passing Down Values
Legacy isn’t just about assets—it’s about impact. Helping your children or grandchildren graduate debt-free sets them up for a stronger financial future and teaches them the value of planning ahead.
We help families use education planning to:
- Teach responsible money management
- Support career goals without long-term debt
- Build generational wealth with purpose
How MB Wealth Advisors Can Help
We don’t view college planning in isolation. It’s part of your complete financial picture. Our process helps you:
- Compare savings tools (529 plans, UTMAs, Roth IRAs)
- Evaluate how much to save—and when to start
- Coordinate education savings with tax, estate, and retirement planning
- Protect your long-term wealth while supporting short-term goals
Whether your child is a toddler or a high school senior, it’s not too late to build a plan that works.
Make College Planning Part of Your Legacy
Helping your family afford education is one of the most powerful gifts you can give—but it works best with a strategy. Let us help you fund education without derailing your future or limiting your options.
Visit our Financial Planning Services to learn more, or call (704) 584-9363. You can also schedule a consultation through mbwealthadvisors.com/contact/#connect.