40 Year Anniversary Changing Lives with Successful Financial Plans Award banner

Your Financial Questions Answered By Our Experts

It’s Never Too Early to Begin Retirement Planning in Orlando

Nelson Financial Planning is proud to be among Central Florida’s fastest-growing and most respected financial planning firms. You’ll find our financial and retirement planning experts doling out advice every Sunday over the radio dials at WFLA 93.1 FM/540 AM. On air for the past 30 years, “Dollars & Sense” is one of the Sunshine State’s longest-running radio programs with over 1,600 episodes. Our dedicated financial and retirement planning firm believes in being fully accessible to our clients. Should you have a question or concern about planning for your future, we encourage you to give our weekly radio show a listen, give us a call or send us an email. You may find our frequently asked questions about financial and retirement planning in Orlando, FL listed below helpful as well. Let’s get started!

Retirement Income Planning FAQs

How much money do I need to retire?

Knowing exactly how much money you will need to retire comfortably differs for everyone. The general guideline is that you will need anywhere from 70%-90% of your pre-retirement income when you retire. Other factors that will help our financial planners determine an accurate figure for retirement include how much you will spend in retirement, how much you will earn on your savings, how long you will live, and how much you can withdraw from your savings each year.

How will my tax bracket be affected after I retire?

Your taxable income determines your tax bracket. Typically, people don’t make more taxable income in retirement than they do during their working years, so it is unusual for people to be put into a higher tax bracket during retirement. However, even if you’re taxable income is less in retirement than when you were working, it is still possible that you could remain in the same tax bracket once you retire.

When does the average American retire?

Most Americans typically retire between the ages of 62 and 68. Your full retirement age to receive Social Security benefits is based on the year you were born. While some people may choose to retire before their full retirement age, their Social Security payouts are reduced for their lifetime if they start taking them before their determined full retirement age.

What age is considered early retirement?

Retiring before the age of 62 is usually considered early retirement. However, your full retirement age for Social Security benefits is determined by the year you were born.

When should I start planning for my retirement?

It’s never too early to start retirement planning. The sooner you begin planning, the more likely it is you’ll be able to retire the way you want. No matter your age, salary, or occupation, Nelson Financial Planning would be happy to help with financial and retirement planning in our Orlando office.

How much should I be saving each month for retirement?

If you can contribute to a company-sponsored 401K program, you should contribute at least the minimum to earn your company’s match if they offer one. How much you need to save for retirement to maintain your current lifestyle will depend on how soon you start saving.

What is the best way to invest retirement money?

The best investment strategy will depend on the age of the investor. At Nelson Financial, we will also look at risk tolerance and overall asset allocation. The sooner you start investing the less risk you will need to take later on in life. For investors between 20 and 40, you should take an aggressive growth approach to investing since you have time on your side. Between 40 and 50, that approach should start to be less aggressive. Once you are in retirement the investment mix should further shift to be growth and income oriented so you are able to get income while having enough growth to support the retirement income.

What is the average cost of health insurance for a retiree?

At age 65, you are eligible to receive Medicare. However, many retirees elect to purchase additional policies for complete coverage. If you retire before the age of 65 before you’re eligible for Medicare, health insurance can cost thousands of dollars per year.

What percentage of my retirement living expenses will social security cover?

Social Security benefits probably won’t cover more than 25% of “average” living costs. However, with all retirement planning questions, the most accurate answer will depend on your retirement age, how much you have accumulated in Social Security and your cost of living in retirement.

Financial Planning FAQs

What is financial planning? Is it too early for me to think about it?

Financial planning allows you to look at your finances, investments, taxes, debt and spending habits to help you reach your retirement goals. While it may sound like something for the elite, the reality is everyone should have a financial plan, even the minimum wage worker in their early ‘20s. Hiring a financial planner will put you one step closer to realizing your future financial goals. Our firm will help you identify both short- and long-term goals while analyzing your net worth and income to determine the feasibility of your goals. The decisions you make now will impact your future, so make wise ones and invest in yourself!

Why should I make a financial plan for my future?

The sooner you start planning the better off you will be. It takes time to build wealth and pay off debt so the sooner you start the further progress you will make on achieving your financial goals. Your retirement income is affected by your age, debts, income, living expenses, investments, and prior compensation. The number of student loans or credit card debts you have can affect your ability to explore your hobbies or travel to distant lands. Failure to plan for the future results in many disappointed retirees. With a significant portion of the U.S. population deciding to retire in Central Florida, our firm has worked with many clients throughout various stages of their lives. Please contact Nelson Financial Planning to get started on developing your financial plan for the future today.

What should a financial or retirement plan include?

A typical financial plan should include a list of all your finances, including all income, savings, debts, taxes, and investments. You’ll need to prioritize your goals and be able to see the big picture towards planning your retirement. Our plans typically include determining your net worth and preparing an income statement that details both your income and expenses. From there, we look for ways to pay off debt faster or start saving sooner. Our experienced financial advisors will help you answer these questions:

  • If you buy a new car this year, how will that impact your savings and ability to pay off other debts?
  • Is there a way for you to pay off your debts and mortgage on your home sooner than expected?
  • How can you reduce your annual taxes?
  • Are you able to set more aside now for your 401k plan or Individual Retirement Account (IRA)?
  • Should you be investing in a more aggressive or conservative portfolio given your age, income, and anticipated age of retirement?
  • Could you benefit from behavioral coaching to help you make better financial decisions?

Wealth Management FAQs

What is wealth management?

Wealth management is a financial service that considers a wide array of financial and investment strategies for clients with a high net worth.

What is the difference between financial planning and wealth management?

Financial planning typically refers to helping individuals, couples, and families plan for their future to get ahead. Wealth management deals with managing the money that you have accumulated throughout life and involves a much more detailed investing and financial plan.

What’s the process for getting started? What’s the minimum investment requirement?

There is no minimum to get started with any of the services Nelson Financial offers. Typically, financial planning happens when you are planning for retirement while wealth management occurs for those in retirement. To learn more about getting started, contact the wealth management advisors at Nelson Financial to answer your specific questions about wealth management planning.

What types of services do you provide for wealth management clients?

With so many investment options available and each one having their own historical rates of return and investment potential, our wealth management services look at each client’s investment goals and objectives, risk tolerance, and time horizon for a successful wealth management plan.

Legacy Planning FAQs

What is legacy planning?

Legacy planning involves preparing how you will leave your property and assets to loved ones or next of kin. It also allows you to plan how you can promote or support important causes with your finances after you pass.

What is traditional estate planning?

Traditional estate planning, such as wills and trusts, lays out plans explaining how property should be handled after death to keep them out of probate.

What is the difference between legacy planning and estate planning?

Both legacy and estate planning involve making plans to leave property and assets to family members after death, but legacy planning includes much more detailed plans such as setting up a charitable foundation or contributing to important causes. Estate planning ensures that property is passed on as desired.

What steps can I take to preserve my legacy?

The most important step you can take is to meet with qualified legacy planning financial advisors. At Nelson Financial, we are happy to discuss how you’d like to be remembered with knowledgeable legacy planning services.

What’s the difference between having a will and a living trust?

The main difference between a will and a living trust is that a will goes into effect after death. A living trust goes into effect immediately, as soon as it has been drawn up. Additionally, wills must pass through probate, whereas trusts do not.

Tax Mitigation FAQs

What can affect my taxes?

To help you limit your tax liability in retirement, we pay close attention to tax situations that allow for free withdrawals of pre-tax retirement funds. We also focus on levels of income that can trigger the taxing of Social Security benefits. Our financial team can help you with your tax mitigation strategy in retirement.

Is my Social Security income taxable?

It can be. Social Security income is taxable if your total yearly income is above the taxable income threshold set for those filing jointly or individually.

General FAQs

Why should I trust Nelson Financial Planning to assist me?

Nelson Financial Planning has been family-owned and -operated since 1984. Although we’re among Central Florida’s fastest-growing firms, we’re able to offer our services at a cost that’s typically 25% less than many other firms. When it comes to financial and retirement planning in Orlando, experience matters. Our retirement plans are not cookie-cutter computer-generated reports you’ll find at every other investment firm. We take the time to develop customized solutions for every client looking to begin planning for their future during our one-on-one planning sessions.

What services do you offer at Nelson Financial Planning?

In addition to financial and retirement planning in Orlando, Nelson Financial Planning would be happy to assist you with wealth management, legacy and estate planning, tax mitigation services, and navigating the Florida Retirement System if you’re a state employee looking at your retirement options.

Where do you obtain securities for my investment portfolio?

At Nelson Financial Planning, we never recommend investing in anything that we wouldn’t invest in ourselves. We use actively managed mutual funds with a history of producing superior investment results over time. Our investment philosophy is based on diversification and consistency. “Don’t put all your eggs in one basket” is more than just a proverb – it’s sound financial advice. Our firm offers securities through Nelson Ivest Brokerage Services, Inc., Member FINRA (Financial Industry Regulatory Authority), MSRB (Municipal Securities Rulemaking Board), and SIPC (Securities Investor Protection Corporation)

Do you offer free initial consultations at your investment firm?

Yes, we do offer initial conversations with our financial advisors cost-free. Whether you’re interested in discussing your 401k savings, retirement income, tax preparation, or financial planning, we encourage you to give Nelson Financial Planning a call today at 407-629-6477 to get started!

What Sets Us Apart?

  • Integrated retirement planning, tax mitigation, legacy planning and wealth management with a focus on timely and proactive client communication.
  • Family owned and operated since 1984 with a tradition of producing superior investment results at a cost typically 25% less than other firms.
  • Central Florida’s fastest growing and most honored financial planning firm with the area’s longest running radio show.