Mathis Wealth Management

Long-term care is often overlooked in retirement planning, yet it's one of the largest potential expenses retirees face. Nursing homes, assisted living, home care—these costs can easily exceed $100,000 per year.

Medicare doesn't cover long-term care, and many families are shocked to discover the financial impact when care is needed. The time to plan is now, before you need it. Whether through insurance, savings, or strategic planning with your family, addressing long-term care risk protects both your wealth and your independence.

We know education funding matters to parents and grandparents. However, when choices must be made between retirement savings and 529 plans, prioritize your own retirement.

Think of it like airline oxygen masks: put yours on first. Your children won't benefit from you sacrificing retirement security. You cannot borrow for retirement the way you can for education. Secure your own future first, then help with education costs.

Grandparents can open 529 plans or gift Roth IRAs in the meantime. The wisdom is taking care of yourself first.

Your peak earning years are your biggest opportunity to build tax efficiency into your portfolio. Tax-loss harvesting, strategic charitable giving, Roth conversions, and asset location all reduce taxes when your income is highest. Once you retire and income drops, some of these strategies become less effective.

Maximize tax efficiency now while you're in higher tax brackets. The difference compounds over decades of retirement. Are you making the most of your peak earning years?

July is a great time to review three critical areas before year-end: First, verify beneficiaries on retirement accounts and insurance policies are current and correct. Second, assess whether your insurance coverage still matches your family's situation. Third, evaluate your investment strategy against your goals and risk tolerance.

Half the year is gone, and now is the time to adjust course if needed. Don't wait until December. Schedule a conversation with your advisor this month.

Many couples retire at 62 or 65, before Social Security eligibility at 67 or later. This creates a critical income gap that derails unprepared retirements. You need a strategy to cover living expenses and healthcare costs until Social Security begins.

This might involve drawing from savings strategically, delaying Social Security to increase payments, or working part-time initially. The gap can be 5-10 years, so planning matters tremendously.

Work with an advisor now to map out your retirement years before you need them.

Asset location matters. Where you hold your investments is as important as what you hold. For mid-career couples building wealth, asset location is one of the most overlooked tax strategies.

Tax-efficient assets like index funds belong in taxable accounts. Tax-inefficient assets like bonds belong in retirement accounts. Growth investments belong in long-term accounts to avoid frequent taxable events. Strategic placement across account types can save thousands in taxes over your career without changing your overall investment strategy.

Work with your advisor to optimize where your money lives.

Especially for blended families and others with non-traditional organization or other complex issues, careful estate planning can avoid or, at the very least, ease potential strife. Financial planner Cameron Mathis provides some important principles.

Estate Planning for Modern Families - Mathis Wealth Management A guide to estate planning for modern families, including blended, estranged, or other complex family dynamics.