Скачать или смотреть Retirement Roadmap: 4 Key Areas to Address

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The first step in your roadmap to retirement success is to create a stream of income. This is the first step to help reduce financial strain in your retirement. The key is to create a stream of income that you can count on no matter what happens to the economy or stock market.
The 4% rule is touted in the financial press as an amount you can safely withdraw without ever having to worry about running out of money. The issue with the 4% rule is the projected returns of stocks and bonds today is much different than the returns back in the 1990s when this rule originated. That being said, if the first few years of your retirement, the investment returns are strong, you very well may be able to draw 4% or even more out with no issues.
But if the first few years of your retirement the investment returns are negative, you might need to withdraw considerably less than 4% to help prevent yourself from running out of money.
The science and math of retirement income planning has concluded that creating a lasting stream of income that is not impacted by the stock market performance is the most optimal way to eliminate the worry of running out of money in retirement. (Hegna, 2019, p.8)) The three tools for creating this income stream are Social Security, Pensions, and income annuities.
The second step is investment planning. By managing your investments effectively, you will have the funds available to meet any spending needs above your basic living expenses which were covered in step one. Also, good investment management can help provide you protection against inflation and ultimately it can help you to gift money to your children or desired charity. Start with deciding what retirement goals that you want to fund. Then assess your risk tolerance to determine how much downside risk you can handle. Then match your time horizon for specific goals with investments that are appropriate for that time horizon. Depending on the situation and when properly executed, a good investment plan could have you buying low and selling high.
The third step is asset protection strategies. You should look for strategies to help protect your assets from other various threats. One risk is shock losses. These are large, unexpected expenditures. House fire, car wreck, medical emergencies, lawsuits, and the need for long term care are just some of the potential threats. The proper insurance coverages or the use of multiple entities are common ways to handle these risks. But there will probably be some risks that the use of insurance and entities will not be helpful in eliminating. In this case, you might have to see if you have sufficient funds to handle the potential exposure or avoid it altogether.
There are two other risks that, while they may not be considered a sudden shock loss, they definitely have the potential to be a huge risk over time. These two risks are taxes and inflation. Over a period of time, these two risks can potentially take a huge chunk out of your retirement assets.
The final step is legacy planning. This planning involves efficiently and effectively transferring assets to either the desired beneficiaries, charities or church at death. This planning process involves careful examination of the tax issues surrounding these decisions. In addition to a tax review it is also vitally important that careful attention is paid to making sure the desired recipient actually gets the asset. It is not uncommon that in the event of a major life change the beneficiary is not updated. It is also important to review end of life documents .It is not enjoyable to think about our own demise. But I do think the vast majority of retiree’s ultimately want their loved ones to be taken care of after they are gone.
If you haven’t started, have started but want a second opinion or are in the midst of it all and think your plan needs a change, please don’t hesitate to give us a call!
Disclosure: Investment advisory services made available through AE Wealth Management, LLC (AEWM). AEWM and Bradshaw & Weil Wealth Management, LLC are not affiliated companies.
Investing involves risk, including the potential loss of principal. Any references to protection benefits, safety, security, lifetime income generally refer to fixed insurance products, never securities or investment products. Insurance and annuity product guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company. Our firm is not affiliated with the U.S. government or any governmental agency. Neither the firm nor its agents or representatives may give tax or legal advice. Individuals should consult with a qualified professional for guidance before making any purchasing decisions. 6/22-1363987
Reference:
Hegna, T. (2019) “Retirement Alpha”: how Mortality Credits Improve Retirement Outcomes.