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Define your cash flow
If you haven’t already developed a budget for yourself, do it now. Defining your cash flow-how much money you have both coming in and going out _ is your first step. Understanding your spending patterns will help you to know how much income you’ll need to create once you’re in retirement.
Social Security timing.
Many people leave tens of thousands of dollars on the table by claiming too soon or not coordinating benefit strategies with their spouse. It is very important to analyze your benefits and calculate the best time to claim.
Create an income strategy.
A retirement strategy has two phases: one in which you build assets to help fund your retirement and one in which you use those assets to generate income in retirement.
Acknowledge Inflation.
A retirement plan that does not account for inflation could result in you having to adjust your lifestyle in retirement. Make sure your retirement plan has a provision for increasing income, or reducing expenses, to account for inflation in retirement.
Sequence of returns.
The risk of receiving negative returns as you begin your retirement and make withdrawals from the underlying investments can dramatically impact your retirement plan.
Investment Fees
Fees play an important part of your overall portfolio performance. Most people don’t realize the exorbitant fees associated with common investments, investment products, and financial advisor fees. Fewer fees mean more money in your pocket.
Review insurance coverages.
It is very important to review your health, life, home and auto insurance policies. Every year, premiums can increase. Reviewing your coverage regularly ensures you are in the most cost-effective plan.
Calculate your risks.
It’s not a bad idea to invest in the stock market. However, you may not want to put all of your eggs in one basket. Know the risks and understand what your timeframe may be to recoup any loses before you commit to anything. The fact is, as your near retirement, you have a much shorter timeframe to
recover from potential market downturns.
Plan for a long life.
With advances in medical care and a trend toward healthier lifestyles, it is not uncommon for people to live another 20, 30, or even 40 years in retirement. That’s great, but it means your money needs to last longer as well.
Last but not least, recognize you might want help with all of the above.
That’s why we’re here. Our business is understanding the important things to consider when planning for retirement, as well as the products and strategies that can help you achieve your goals. We want to help you live the life you dream of, and it all starts with having a plan.
Ready to Take The Next Step?
For more information about any of the products and services listed here, schedule a meeting today or register to attend a workshop.
