Retirement Planning

Secure Your Future with Confidence

At Dharma Life & Wealth Advisors, we believe retirement planning isn’t just about numbers—it’s about peace of mind. Whether you dream of traveling the world, downsizing to a quiet home, or simply maintaining your current lifestyle, we’re here to help you build a retirement strategy tailored to your life goals and financial situation.

Retirement is one of the most significant life transitions you’ll face. Planning ahead ensures you can live the life you envision—without financial stress. With rising healthcare costs, longer life expectancies, and market volatility, it’s more important than ever to have a clear, adaptable plan in place.

• 1. Define Your Retirement Goals

We begin by understanding what retirement looks like for you:

• What age do you plan to retire?
• Where will you live?
• How much will you need monthly to maintain your lifestyle? This clarity sets the foundation for your financial roadmap.

• 2. Estimate How Much You’ll Need

A general rule suggests you’ll need 70–80% of your pre-retirement income annually. We also use the 25x rule: multiply your desired annual income by 25 to estimate your required retirement savings.

For example, if your retirement goal is $120,000/year, you may need approximately $3 million in savings—though this is adjusted based on Social Security, inflation, and other income sources.

• 3. Evaluate Current Savings & Income Sources

We review your 401(k), IRAs, brokerage accounts, and other assets. If you’re eligible for Social Security or pensions, we factor those in to give you a complete picture of where you stand today—and how far you have to go.

• 4. Create a Smart Investment Plan

Your investment strategy should evolve as you age. We guide you through appropriate asset allocations—balancing growth and safety—while maximizing tax-efficient contributions to retirement accounts like Roth IRAs or 401(k)s.

• 5. Plan for Healthcare & Long-Term Care

Healthcare is a major retirement expense. We help you plan for Medicare, supplemental coverage, and long-term care options, so unexpected costs don’t derail your retirement income strategy.

• 6. Build a Sustainable Withdrawal Strategy

Once retired, knowing how and when to withdraw money is just as important as saving it. We use techniques like the 4% rule, tax-efficient drawdown sequences, and “bucket strategies” to extend the life of your portfolio.

• 7. Protect Your Legacy

Retirement planning includes estate planning. We help you set up wills, trusts, and beneficiary designations, ensuring your assets go where you want—and your loved ones are taken care of.

At Dharma Life & Wealth Advisors, we guide you through every phase of financial planning—including tax-efficient retirement contributions, estate strategies, and investment transitions. Whether you're contributing to a 401(k), passing down a family home, or planning to defer taxes through a 1031 exchange, we help make the complex, clear.

A traditional 401(k) plan offers one of the most powerful retirement savings tools—pretax contributions. While not technically a "tax deduction," these contributions reduce your taxable income automatically. For example, if you're in the 22% tax bracket and contribute $20,000 in a year, you could lower your tax bill by about $4,400.

Contribution limits for 2025:

• $23,500 standard
• $31,000 if you're 50+
• Up to $70,000 total including employer contributions

Many employers also offer matching or profit-sharing contributions—often pretax—further growing your retirement nest egg. Some now allow Roth employer contributions, which are taxable today but grow and withdraw tax-free in retirement.

We also help you evaluate traditional vs. Roth 401(k) options. If you expect to be in a higher tax bracket later, Roth contributions may offer significant long-term tax savings.

Your home can be both a treasured asset and a tax-sensitive transfer. Whether you wish to gift, sell, or pass it on through your will, each method has implications.

• Sell: Selling to an heir removes the home from your taxable estate, but must be done at fair market value to avoid gift tax issues.
• Gift: While generous, gifting a home today may reduce your lifetime exemption and trigger capital gains taxes for your heirs due to a lower cost basis.
• Will or Trust: Passing it down via a trust or transfer-on-death deed can help avoid probate. The home typically receives a stepped-up cost basis, reducing future taxes.

We’ll work with you to develop a plan that meets your wishes—while minimizing tax burdens and avoiding inheritance disputes among family members.

If you own investment property, a 1031 exchange allows you to sell and reinvest in a similar property—deferring capital gains taxes.

Key rules include:

• Like-kind property only (real estate)
• New property must be equal to or greater than the value
• Strict timelines: 45 days to identify, 180 days to close
• Funds must be held by a qualified intermediary (QI)

This strategy can keep your capital working, rather than paying taxes prematurely. But one misstep can disqualify the exchange—so professional guidance is essential.

From maximizing 401(k) contributions to passing on a family home or leveraging real estate exchanges, Dharma Life & Wealth Advisors helps you make informed, forward-thinking decisions.

Ready to explore your options?