Retirement planning can be thought as a broad collection of strategies and solutions, all with the aim of securing a sustainable source of income during retirement. While the core principle or retirement planning—saving and allocating resources—is simple, the process can be complicated. For one, there are numerous solutions and strategies. For another, every individual has a unique set of goals, challenges, and needs. Someone who is twenty to thirty years away from retirement will have a different set of appropriate solutions than someone who is five to ten years away.
Typically, retirement planning starts with an exploration of your retirement needs and goals. In broad strokes, what is your ideal retirement lifestyle, what needs and challenges do you anticipate, etc. Then retirement planning continues with assessing your current retirement assets or programs, such as savings as well as retirement plans through an employer, such as 401(k) or IRA. Then, based on your projected time horizon and preferred retirement scenario, your finances are analyzed for your readiness-to-retire.
If there are insufficiencies, an advisor may explore opportunities that help you build a source of income. Potential solutions may be a cash value life insurance policy, an annuity, or even investments. You may also wish to consider solutions to protect your growing retirement assets, such as long-term care insurance.
Early and smart retirement planning is important to your financial fitness. Due to inflation, longer life expectancies, and market volatility, retirees face a real risk of outliving their money. The high-cost of long-term care or other medical situations can also threaten a retirement plan.
This is why exploring retirement income strategies that allow for both guaranteed income and growth potential is crucial. Working with a financial professional that can walk you through every step of the process helps to increase the likelihood of achieving financial independence in retirement.
Retirement Income Planning
The modern landscape of retirement is very different than previous generations. With longer life expectancies, inflation, market volatility, taxes, and rising health care costs, the next wave of retirees face a risk of outliving their money. We seek income planning solutions that help our clients achieve and sustain their ideal retirement lifestyle.