Five Star award winner Scott Van Den Berg

6 Important Factors For Securing a Prosperous Retirement

Achieving a financially successful retirement is a multifaceted endeavor that requires careful planning, disciplined saving, strategic investing, risk management, and continuous monitoring of your financial situation. Let's delve into the six most important factors for securing a prosperous retirement and peace of mind while also weaving in the significance of a comprehensive financial plan with base case and "what if" scenarios.

1. Early and Consistent Saving:

The journey to a financially secure retirement begins with early and consistent saving habits. Start saving as soon as possible and aim to save at least 10-15% of your income annually. Utilize tax-advantaged retirement accounts like 401(k)s, IRAs, and pensions, and take advantage of employer matching contributions. Consistency in saving is key to harnessing the power of compounding over time.

2. Diversified and Balanced Investments:

Construct a well-diversified investment portfolio aligned with your risk tolerance and retirement timeline. Include a mix of stocks, bonds, mutual funds, and other asset classes to spread risk and optimize returns. As retirement approaches, gradually shift towards a more conservative allocation to protect your savings. Regularly review and rebalance your portfolio to maintain your desired risk-return profile.

3. Tax-Efficient Strategies:

Explore tax-efficient investment strategies to minimize tax liabilities and maximize after-tax returns. Utilize retirement accounts with tax advantages such as Roth IRAs and tax-deferred plans such as a 401(k) or a defined benefit pension plan. Consider tax-loss harvesting and consult with a tax advisor for personalized tax planning strategies tailored to your situation.

4. Healthcare and Insurance Planning:

Factor healthcare costs and insurance needs into your retirement plan. Estimate potential expenses and consider long-term care insurance or supplemental Medicare plans. Understand Medicare options and review health insurance coverage to make informed decisions about healthcare during retirement.

5. Lifestyle and Budgeting:

Develop a realistic retirement budget considering all income sources, expenses, and lifestyle goals. Prioritize essential expenses, account for inflation and taxes, and monitor spending habits. Balance discretionary spending while ensuring financial stability throughout retirement.

6. Comprehensive Financial Planning

Create a detailed financial plan encompassing base case and "what if" scenarios. The base case outlines retirement goals, income sources, expenses, and investment strategies. Develop contingency plans for unexpected events like market downturns or healthcare emergencies. Regularly update your financial plan to adapt to changing circumstances and maintain financial resilience.

By integrating these key factors and adopting a comprehensive financial plan with base case and contingency scenarios, you'll be better equipped to navigate the complexities of retirement planning, make informed decisions, and secure a prosperous financial future in retirement.

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This award was issued on 07/01/2025 by Five Star Professional (FSP) for the time period 10/30/2024 through 05/01/2025. Fee paid for use of marketing materials. Self-completed questionnaire was used for rating. This rating is not related to the quality of the investment advice and based solely on the disclosed criteria. 1649 Austin, San Antonio and Central Texas-area wealth managers were considered for the award; 91 (6 % of candidates) were named 2025 Five Star Wealth Managers. The following prior year statistics use this format: YEAR: # Considered, # Winners, % of candidates, Issued Date, Research Period. 2024: 1,400, 90, 6%, 7/1/24, 10/10/23 - 4/30/24; 2023: 1,251, 79, 6%, 7/1/23, 10/10/22 - 5/5/23; 2022: 1304, 90, 7%, 7/1/22, 9/20/21 - 4/8/22; 2021: 1233, 118, 10%, 7/1/21, 9/14/20 - 4/30/21; 2020: 1254, 124, 10%, 7/1/20, 9/30/19 - 4/17/20; 2019: 1204, 178, 15%, 7/1/19, 10/15/18 - 4/26/19; 2018: 1102, 161, 15%, 7/1/18, 10/30/17 - 5/21/18; 2017: 1431, 207, 14%, 7/1/17, 10/27/16 - 5/23/17; 2016: 1283, 351, 27%, 6/1/16, 12/8/15 - 5/20/16; 2015: 1968, 374, 19%, 7/1/15, 9/30/14 - 5/15/15; 2014: 2794, 357, 13%, 7/1/14, 9/30/13 - 5/15/14; 2013: 2254, 399, 18%, 8/1/2-13, 5/13/13 - 7/1/13; 2012: 1673, 392, 23%, 7/1/12, 9/30/11 - 5/15/12.

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Century Management Financial Advisors ("CM") is an independently registered investment adviser with the U.S. Securities and Exchange Commission. Registration does not imply a certain level of skill or training. Century Management is also registered as a Portfolio Manager in the Province of Ontario. This information is educational in nature and does not constitute investment advice. CM is not making a recommendation for or endorsing any investment strategy or particular security. All views, opinions and positions expressed herein are that of the author and are subject to change without notice at any time. CM does not provide legal or tax advice and the information herein should not be considered legal or tax advice. All investments involve risk and unless otherwise stated, are not guaranteed. A full description of our Firm’s business practices, including our Firm’s investment management services, wealth plans and advisory fees, is supplied in our Form ADV Part 2A and/or Form CRS, which is available upon request and also at www.centman.com. 4-2-24 LS

Wealth managers do not pay a fee to be considered or placed on the final list of Five Star Wealth Managers. The award is based on 10 objective criteria. Eligibility criteria - required: 1. Credentialed as a registered investment adviser (RIA) or a registered investment adviser representative; 2. Actively licensed as a RIA or as a principal of a registered investment adviser firm for a minimum of 5 years; 3. Favorable regulatory and complaint history review (As defined by FSP, the wealth manager has not; A. Been subject to a regulatory action that resulted in a license being suspended or revoked, or payment of a fine; B. Had more than a total of three settled or pending complaints filed against them and/or a total of five settled, pending, dismissed or denied complaints with any regulatory authority or FSP's consumer complaint process. Unfavorable feedback may have been discovered through a check of complaints registered with a regulatory authority or complaints registered through FSP's consumer complaint process; feedback may not be representative of any one client's experience; C. Individually contributed to a financial settlement of a customer complaint; D. Filed for personal bankruptcy within the past 11 years; E. Been terminated from a financial services firm within the past 11 years; F. Been convicted of a felony); 4. Fulfilled their firm review based on internal standards; 5. Accepting new clients. Evaluation criteria - considered: 6. One-year client retention rate; 7. Five-year client retention rate; 8. Non-institutional discretionary and/or non-discretionary client assets administered; 9. Number of client households served; 10. Education and professional designations. FSP does not evaluate quality of services provided to clients. The award is not indicative of the wealth manager's future performance. Wealth managers may or may not use discretion in their practice and therefore may not manage their clients' assets. The inclusion of a wealth manager on the Five Star Wealth Manager list should not be construed as an endorsement of the wealth manager by FSP or this publication. Working with a Five Star Wealth Manager or any wealth manager is no guarantee as to future investment success, nor is there any guarantee that the selected wealth managers will be awarded this accomplishment by FSP in the future. Visit www.fivestarprofessional.com.