Given the dynamic nature of global markets and the ever-changing economic landscape, addressing portfolio management and market volatility is essential. During these periods, wealth preservation paths can prove complex. Managing and addressing portfolio risk, taxes, estate and retirement planning, and monitoring progress toward goals is essential.

Therefore, a comprehensive understanding of fundamental strategies for navigating market volatility often includes the following:

1. Diversification. The old investment adage, “Don't put all your eggs in one basket,” is particularly relevant today as it was decades ago. Diversifying your investment portfolio mitigates the risk by spreading the investments across various types of investments, sectors, or geographies.

For example, consider including bonds, ETFs, real estate, or alternative investments in your portfolio instead of investing only in equities.

2. Staying informed. Additionally, staying informed about market trends and economic indicators is key to wealth management. Understanding how geopolitical events, policy changes, or other developments affect market conditions provides insight into making informed investment decisions. Staying informed enables one to anticipate market shifts and position one's portfolio accordingly.

There is often debate on the role that luck plays in accumulating wealth. Some argue that wealth accumulation is a matter of hard work, commitment, and good decisions, while others believe luck is a factor.

However, there are actions that those with wealth initiate in their wealth accumulation approach.

1. Financial Literacy—Financial literacy is the cornerstone of wealth accumulation. It equips one with understanding how money works, tools to make informed financial decisions, and strategies to optimize wealth. A basic knowledge of economic concepts, investing principles, taxes, budgeting, risk management, and retirement planning is vital. Wealth accumulation isn't about relying on luck but developing the skills and aptitude to grow financially.

2. Ability to adapt to changing circumstances—Wealth accumulation isn't just about sticking to one strategy. Instead, it requires constant adaptation based on changing scenarios. A sudden market downturn or an industry's spiraling growth shouldn't catch you off guard.

Being prepared, flexible, and willing to change your investment approach is essential. This often determines whether assets will continue accumulating or lose value.

Social Security (SS) retirement benefits are a vital component of retirement income for many people. It consists of multiple benefits, including disability, survivor, and retirement benefits, and is an indispensable part of many individuals' financial plans.

Knowing how to boost SS benefits can be advantageous over one’s lifetime.

Understanding benefit start options

Deciding when to start receiving Social Security benefits is essential. There are three options: early retirement, full retirement age, or delaying benefits. Each offers a different perspective depending on individual circumstances, making it vital to understand each option thoroughly.

Early retirement

Opting for early retirement benefits involves starting to collect benefits at age 62. Doing so provides immediate income but results in a managed monthly benefit amount. This reduction could range from a modest 25% to a drastic 30% cut, depending on your full retirement age defined by the Social Security Administration based on your birth year.

While this option may be appropriate for those who need immediate income or have a shorter life expectancy, it might not be the most optimal strategy for those who live long lives. To make an appropriate decision, assess your financial needs, health status, and family longevity history.

A 529 plan offers tax advantages in addition to saving for future education costs. These plans help parents save for their children's college expenses and may be appropriate in estate planning.

529s as a wealth transfer strategy have become more accepted due to their characteristics, tax advantages, and potential for flexibility in distribution. Here are some of the key estate planning benefits of 529 plans:

Account owner control

What sets the 529 plan apart is that the account owner retains control over the assets. Unlike other gifting techniques, where the giver loses control over the gifted assets, with a 529 plan, the owner can change beneficiaries or reclaim the funds (with penalties and income taxes applied). This control can be instrumental, especially when unforeseen circumstances arise.

Reduces the size of taxable estate

One of the primary benefits of a 529 plan is its potential to reduce the size of one's taxable estate while retaining control over the funds. Contributions you make to a 529 plan are considered gifts for tax purposes.

In 2025, individuals can contribute up to $19,000 per beneficiary without triggering a gift tax. Under a special election, individuals can 'super-fund' their contributions upfront to $95,000 per beneficiary (or $190,000 for married couples), constituting five years' worth of gifts and removing them from one's lifetime taxable estate.

Retirement is a chapter of life that, for some, may signal leisure, freedom, and working by choice, not necessity. However, this phase usually requires retirement income from retirement savings withdrawals. Different retirement account types have different taxation when withdrawing monies: taxable, tax-deferred, and tax-free.

This article discusses investment strategies and taxation, which affect the growth and value of retirement savings accounts.

Taxable accounts

Taxable accounts have fewer restrictions on contributions and withdrawals, but the returns are subject to taxation. Investing in taxable accounts is done with after-tax money and includes:

· Brokerage accounts

· Individual stocks

· Real estate and other hard assets (metals)

· Mutual funds, exchange-traded funds (ETFs), index funds

Tax-deferred accounts

Traditional Individual Retirement Accounts (IRAs) and 401(k)s are the most common retirement savings accounts and offer tax-deductible contributions. A tax deduction implies that the amount contributed to these accounts is deducted from taxable income for that year, thereby reducing one's tax bill. If you fall into a high tax bracket, the tax savings from making these deductions can be substantial.

Many seek financial professionals to help them with investment guidance and financial management. This management involves reviewing investments, savings, insurance, and other elements as they work toward their goals. However, not all financial professionals are created equal. Here's what to look for before hiring one.

Skills and training—Competence is key when selecting a professional. They must demonstrate knowledge about the financial markets, investment strategies, tax laws, insurance, and other relevant areas. They should also have the necessary qualifications, credentials, and certifications. This training and education indicate they have undergone thorough training and passed the examinations needed to offer guidance in these areas.

Experience—Secondly, it's essential to consider the financial professional’s experience. Questions to ask while interviewing them include:

· How long have you been providing financial guidance?

· What types of clients have you served?

· Do you specialize in certain areas?

Understanding their experience level and areas of knowledge can help determine if they're the appropriate professional for your unique needs.

Planning for retirement often raises one crucial question: How much should one withdraw each year during retirement? Managing withdrawals may significantly impact the longevity of your retirement funds. Managing withdrawals aims to strike an equal balance between enjoying your retirement and ensuring your savings last throughout life.

Different factors influence this withdrawal calculation, including the size of your retirement portfolio, other income sources, lifestyle demand, life expectancy, and market conditions. Consequently, it would be wrong to assume that a 'one-size-fits-all' policy works for everyone.

This article aims to explain what to consider when planning retirement savings withdrawals.

The 4% Rule

A classic rule often followed is the "4% Rule," which suggests withdrawing 4% of one's retirement savings in the first year of retirement. In subsequent years, the withdrawal should adjust according to inflation. For instance, if you have a retirement corpus of $1 million, you withdraw $40,000 in the first year. This strategy assumes that your portfolio comprises a balanced mix of stocks, bonds, and other retirement savings and insurance vehicles, anticipating they last for at least 30 years.

A critical aspect of retirement planning is understanding the rules and requirements surrounding Required Minimum Distributions (RMDs) from retirement savings accounts. An RMD is a mandatory minimum amount that retirement account owners must withdraw from their accounts annually.

This article overviews RMD requirements and how to circumvent IRS penalties by not exercising them.

What accounts have RMDs?

RMDs are the minimum amount the IRS requires to be withdrawn from a tax-deferred retirement plan. The amount withdrawn is taxed as ordinary income at the owner's tax rate. RMDs apply to:

· Traditional IRAs

· SEP IRAs

· SIMPLE IRAs

· Rollover IRAs

· 401(k) and 403(b) plans

· Most small business accounts

It's essential to note that Roth IRAs, Roth 401(k)s, and Roth 403(b)s do not have RMDs.

Changing RMD ages

In the past, RMDs commenced at 70 1/2 unless one solely owned a 5% or more interest in the business sponsoring the retirement plan; then, it started at a later retirement date. The rule changed following the enactment of the Secure Act in 2019, which pushed the RMD beginning age from 70½ to 72.

Planning for retirement can be overwhelming, but it becomes much easier if you start early. If you plan to retire next year, there are specific things you must consider and implement now as you prepare for an independent retirement. Here are seven tips to help you prepare to retire.

#1- Pay off debt.

Before you retire, it's essential to eliminate as much debt as possible. Whether credit card debt, mortgage loans, or student debt, any outstanding financial obligations may affect your retirement savings. Eliminating these debts can help you manage your monthly expenses and have more cash for your golden years.

#2- Estimate your retirement income needs.

The first step in retirement planning is estimating how much money you need to retire. A common rule of thumb suggests that you may need about 75—80% of your pre-retirement income to maintain a similar lifestyle throughout retirement.

The amount varies depending on health, lifestyle, debts, travel plans, etc. A financial or insurance professional can help determine if this percentage is appropriate for you.

#3- Fully fund an emergency fund.

An emergency fund is crucial to safeguard against unexpected financial emergencies that could derail your retirement plan. Your emergency fund should be large enough to cover six to twelve months of living expenses.

Financial planning, including tax planning, is vital to personal financial health and wealth accumulation. Financial professionals often specialize in tax planning, determining one's wealth growth trajectory and overall tax liability. They frequently collaborate with tax professionals to provide proactive tax-planning services for their clients.

This focus on tax planning and other specialties can help clients work toward financial independence, knowing that their financial affairs—and taxes—are in capable hands. Here are some reasons why discussing taxes and tax planning is essential.

Tax laws

Tax laws evolve continually, and staying updated with these changes can be overwhelming for individuals unfamiliar with the intricacies of tax legislation. Financial professionals specializing in tax planning stay abreast of new tax laws, rulings, and court decisions about taxes. They interpret how these changes may affect their clients' financial circumstances regarding investments and strategies and identify the appropriate investments to help manage tax liabilities.

Personal and business tax planning

Financial professionals specializing in tax planning understand all tax-related issues. They can assist clients in income tax planning, estate tax planning, retirement tax planning, business tax planning, and other related areas. Financial advisors who are well-versed in tax planning can also structure investments, financial activities, and new business opportunities to help manage tax liability.