We’re all doing the best we can to get our financial situations ready for retirement; but you could be in trouble without a well executed retirement plan.
Your retirement strategy may be to save as much money as possible. That’s not a bad idea. Because employer pensions are on the decrease and Social Security checks just don’t cut it, you need to be confident in answering the following three questions if you’re to spend your retirement how you always dreamed of…
1. How much money do I need at retirement to generate the income I need?
Most people need to produce an income after they retire. If you don’t know what your goal is for retirement savings, it’s impossible to ensure you’re on track to meet it. So you need to decide what your target retirement savings number is.
A simple way to get ahead of the game is by learning to budget, save, and invest: Use financial calculators to estimate how much income you need saved for retirement and how large your nest egg should be. This will produce your desired annual income in retirement. Once you know how much income you’ll need, find out how big your investment account needs to be to produce it. Experts recommend withdrawing 4% of your retirement account balance in year one and adjusting upward annually for inflation.
2. What’s your plan to protect your health?
As you get older, you may find yourself more vulnerable to illness and injury. Health care is a majorly over-looked expense for retirees. Fidelity found that the average retired couple will spend $280,000 on out-of-pocket health care costs.
While Medicare will help cover some of the costs, you can reduce your risk by budgeting for this expense, but also by investing in your own health. Think about ways to improve your wellness: Eliminate unhealthy habits, improve your diet and exercise more frequently. Your doctor can help you develop a health care plan that minimizes your risk for serious health issues.
3. How do I efficiently invest to give the highest probability of achieving my retirement objective with the lowest possible risk?
By investing – and growing – your money early, you’re more likely to make the returns work best for you. But before you decide on a short- or long-term investment, think about what you’re investing for and what kind of timeline you’re working with. You also need to consider the risk you’re willing to take, which affects how much of a return you get.
Spending your savings can be a lot more complicated than building them up. And withdrawing assets in the most tax-efficient way can consume time and energy you’d rather spend on other things. This is where a financial advisor can make things easier for you.
Retirement Income Planning from CKS Summit Group
You now know the three key questions you must answer to retire comfortably, but does the thought of reallocating your investments have you unsure of where to turn next? In today′s world, the importance of a well-executed retirement plan cannot be underestimated. When thinking about your retirement portfolio, you want the right mix of investment types within your retirement account.
The retirement experts at CKS Summit Group are here to bring you fresh new ideas for your retirement income. Our cutting edge tactical portfolios help our clients achieve safe, healthy growth of their savings and preservation of their principal balance.
We design plans which are specifically structured to limit downside stock market risk. This allows us to protect our client’s assets while providing them with strategies for achieving effective tax reduction and inflation protection.
Come and experience the new evolution of retirement income planning. Click here to set up your complimentary strategy session today.