Traditionally, financial advisors have focused solely on investment management. There’s a big problem with this, though: when their clients reach retirement, they can be left to figure out for themselves how to turn their managed investments into an income stream. You deserve more. You deserve a written plan on paper, on purpose that accounts for all the complexities of retirement.
Social Security is foundational to retirement, but it can be confusing. The decisions you make today can have a tremendous impact on the total amount of benefits you stand to receive over your lifetime. With about 2,700 rules that govern Social Security, do you know how to maximize your benefit?
There’s a common misconception that work has to be either on or off – that once you retire you can never work another day in your life. But, in reality, it’s not so black and white. “Work-tirement” can add years to your life and your money. Whether that fits into your ideal retirement is entirely up to you!
Even during low periods of inflation, the effect of rising prices erodes the purchasing power of your money. For example, at a 3% inflation rate, a $2 cup of coffee would cost nearly double that in 20 years. While this may not seem like a big deal, consider how that same inflation rate could impact your assets. A reduction of your purchasing power by as much as 50% over your lifetime in retirement is truly a loss that you can’t recover from.
The most important number in retirement isn’t how much you have saved, but how much income you need each month. You shouldn’t have to question whether or not your basic needs will be met in retirement. You need a solid foundation to provide you with regular, predictable income.
Nearly half of Americans will need some sort of long-term care in their lifetime. While we hope that you never have to face chronic health problems in retirement, that’s not something you want to leave up to chance. The point of a plan is to give you options in the case that these circumstances arise.
You can spend your entire life saving for retirement, but when the time comes, will you be prepared for the possible taxes that come with drawing income from your investments? You see, your tax rate may vary widely over the years. The timing and order in which you use different sources of money to pay for living expenses can make a major impact!
