Ask the Advisor: What’s one ‘quiet’ risk people forget to plan for?

We asked three Thrivent financial advisors the question: What’s one ‘quiet’ risk people forget to plan for—and what’s a first step to address it?

“Many people neglect to create or update estate legal documents. Those who have them often think it’s a one-and-done task. Once estate documents are made, have them reviewed by a legal professional every 10 years or whenever significant life changes have occurred, such as a marriage, birth or change of residency.”
—Steven Jones, financial advisor, Poughkeepsie, New York

“Waiting is a ‘quiet’ risk we all like to take. We tell ourselves we’ll act when things feel more settled, more certain, more ‘in place.’ But waiting can cost us growth, flexibility and opportunities. Even if the first step feels small or imperfect, starting your plan today builds momentum, and momentum creates choices for tomorrow.”
—Halle Bertilrud, financial advisor, Virtual Advice Team

“Required minimum distributions [RMDs] are the IRS’s sneaky way of creating tax revenue off your retirement assets. Without planning, RMDs can push you into higher brackets, reduce deductions and increase Medicare premiums. Planning early enables gradual, tax-efficient moves. Later, strategies like Roth conversions, wealth transfer strategies and longevity planning can help defuse the accumulated ‘tax time bomb.’”
—Ian A. Cole, financial advisor, Fortified Financial Group, Mount Clemens, Michigan