Our March 2025 Newsletter: 5 Reasons to Consolidate Your Assets

March 07, 2025

5 Reasons to Consolidate Your Assets

It’s a common misconception that diversification means having several investment accounts at different institutions or with multiple financial advisors.¹ In reality, diversification refers to the variety of investments within your portfolio, not where they’re held. Consolidating your assets with one advisor you respect, and who understands your individual goals for retirement, will help you pursue those goals in a streamlined and strategic way.

1. Bring the big picture into focus. When your assets are all in one place, it’s much easier to develop a retirement plan that will help you pursue your long-term goals. If your assets are managed by more than one advisor, you may receive conflicting advice or duplicate investment strategies that could, in the long run, delay you pursuing your goals or worse yet, fail to ever meet them.

2. Diversification is key! Having a diversified portfolio aligned with your individual risk tolerance and investment objective is incredibly important for long-term investing. With a consolidated account, your advisor will be able to assess the specifics of your portfolio and asset allocation at a glance and make any necessary changes to keep it balanced, vs several different advisors making these adjustments independently which may lead to an unbalanced overall portfolio.²

3. Find your strategy and stick to it! There are methods to make the most of your hard-earned savings in retirement; certain types of accounts should be used before others, etc. If you have one advisor, they’ll know exactly how your retirement is being funded and help you plan a suitable strategy to put your savings to work for you.

4. Make your life easier with simplified recordkeeping. Especially this time of year when you’re gathering financial paperwork to prepare your taxes, wouldn’t it be so much easier to only have to find tax forms from one advisor? This is also beneficial for you or your spouse should one of you pass away – it’s one advisor to deal with, who the surviving spouse knows and trusts. When the surviving spouse does inevitably pass, having your assets in one place will be so much easier for your beneficiaries as well.

5. Reduced Fees… who doesn’t want that? Increasing your assets with an advisor provides opportunities to reduce account fees (advisory fees, transaction fees, etc.).

Are you interested in consolidating your assets? Call our office to schedule a meeting! (518) 584-2555

Important Changes to Medicare for 2025

This article was graciously provided by: Tracey Kayo Twarog, Owner TKT Insurance Agency-Simplify Medicare.³

Currently, Medicare provides healthcare coverage to 68 million people. Every year there are changes to Medicare and it is crucial for beneficiaries to have the updated information in order to make an informed decision about their healthcare.

Here are the changes for 2025:

1. Out-of-Pocket Prescription Drug Costs Cap: Beginning January 1, 2025, Medicare Part D beneficiaries are protected by a cap on annual out-of-pocket prescription drug expenses. This cap limits out-of-pocket costs to $2,000 per year, providing financial relief for those with high medication expenses.

2. Elimination of the Part D "Donut Hole": The traditional coverage gap, known as the "donut hole," has been eliminated. This change ensures more consistent coverage and reduces the financial burden on beneficiaries throughout the year.

3. Mid-Year Medicare Advantage Notifications: Starting in 2025, Medicare Advantage plans are required to send enrollees a personalized "Mid-Year Enrollee Notification of Unused Supplemental Benefits" in July. This notification details unused supplemental benefits, their scope, associated costs, and instructions on how to access them, promoting better utilization of available services.

4. Payment Plans for Out-of-Pocket Costs: Beneficiaries now have the option to spread their incurred out-of-pocket costs across the year. This program is optional and may be less useful to those with relatively stable drug expenses.

5. Medicare Part B Premiums and Deductibles: For 2025, the standard monthly premium for Medicare Part B enrollees is set at $185.00, an increase of $10.30 from the previous year. The annual deductible for all Medicare Part B beneficiaries is $257, up from $240 in 2024.

6. Postal Service Health Benefits Program: Effective January 1, 2025, U.S. Postal Service employees, retirees, and their families transitioned from the Federal Employee Health Benefits program to the new Postal Service Health Benefits Program (PSHB). This change aims to provide more tailored healthcare coverage for postal workers.

These updates reflect ongoing efforts to enhance Medicare's affordability and accessibility for beneficiaries. For more information, visit: www.medicare.gov.

Worried About Outliving Your Savings?

Once you’ve retired, it’s natural to worry about outliving your savings. When it comes to putting your savings to use, it’s critical to withdraw from them strategically to extend their longevity and avoid tax repercussions. Everyone’s retirement savings and priorities look different, so there’s no one-size-fits-all withdrawal order, but here is a general guide to make the most of your savings:

1. If you’re 73 or older, start with your required minimum distributions (RMDs). Like their name says, they’re required; the IRS will fine you between 10% and 25% of the required distribution you didn’t take on time.

2. If you’re not yet 73, or you’ve fulfilled your RMDs, next up is your Taxable Accounts. You invested after-tax dollars into these accounts, so you’ve already paid income tax on this money. Withdrawals before age 59 ½ aren’t penalized and you’ll only owe capital gains tax on the profit made when selling assets vs the entire withdrawal.

3. Start taking your Social Security Benefits; this monthly payment is often the foundation of retirement income. Keep in mind that things like your age when you trigger benefits, your employment status, other sources of income, and your spouse’s benefits will all effect how much money you receive each month.

4. Tax-deferred Savings: traditional 401(k)s & traditional IRAs. You funded these with pre-tax money which reduced your taxable income the year contributions were made. You can withdraw from these accounts penalty free after age 59 ½, paying ordinary income tax on the total amount withdrawn.

5. Lastly, start using your Roth Accounts; we use these last since they grow with no tax burden. You’ve funded these accounts with after-tax money and your contributions and earnings grow tax-free, meaning you don’t pay any additional taxes when you withdraw from them in retirement. Should you not need them to live on, you can leave them to your loved ones as a tax-free inheritance – what a gift!

To read the full article, “Worried About Outliving Your Savings? Here are 5 Retirement Withdrawal Steps to Make Your Money Last Longer,” click here. If you have questions about your withdrawal strategy, or to see if you’re on the right track to make your savings last as long as possible, please call our office: (518) 584-2555

Did You Know: Retirement Statistics

The average American spends roughly 20 years in retirement ⁴
90% of retirees today receive Social Security benefits, in contrast to only 69% of retirees in 1962 ⁵
At the end of 2023 Baby Boomers have an estimated median retirement savings of $194,000 ⁵
64% of retirees depend on Social Security as a major source of their income. The average monthly Social Security retirement benefit as of January 2024 was $1,907.50 ⁶

March: In Like a Lion, Out Like a Lamb

Whether you’re taking advantage of every last bit of snow we get this winter, or if you cannot wait for the warm spring weather, there’s something for everyone happening this month!

· Visit Lapland Lake to get in end of season cross county skiing and snowshoeing in Northville.

· Don’t miss the annual Knights of Columbus Fish Fry Fundraiser every Friday, 3/7 through 4/18.

· Home Made Theater present’s William Shakespeare’s Hamlet, Prince of Denmark at Saratoga City Music Hall on 3/7, 3/8, and 3/9.

· Explore the world of reptiles and exotic pets at the 3^rd Annual Saratoga Reptile Show on 3/16 at the Saratoga City Center.

· Make your summer dreams come true at the 2025 Adirondack Sports Summer Expo on 3/22 at the Saratoga City Center.

Click here to view the entire calendar of events for March!

1There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

2 Asset allocation does not ensure a profit or protect against a loss.

3 Tracey Kayo Twarog and TKT Insurance Agency - Simplify Medicare are not affiliated with Saratoga Financial Services or LPL Financial.

4 dol.gov

5 investopedia.com

6 ssa.gov