Retirement can seem like fortune telling. Expected Rates of Return, Inflation, Asset Allocation, Interest Rates, Age, Taxes, Social Security, and many other factors must be analyzed when preparing a retirement plan. With all of these retirement variables, you may feel like it is a big guessing game!
But it is not.
You can ensure your retirement future with professional planning. The Financial Planning Module will calculate what you need to do to retire the way you want to.
Summary of Retirement Planning
Retirement Age
This small decision tells your financial planner a variety of things- how many years you have to save, whether you are going to have a number of years with no paycheck and no Social Security check (doesn’t start until age 62), whether you will have to withdraw retirement funds before age 59.5 (you can do it, but some detailed planning is required).
Funds Required at Retirement
Every client must make an estimate of what their expenses will be each year of retirement. Look at what you spend now, it is probably a good indicator of what you will spend later. Keep in mind that as time passes, medical expenses will likely increase. And inflation, never forget about inflation.
Guaranteed Income
Pensions, Social Security, Trust Income, and other sources of revenue that are guaranteed must be factored in to your retirement plan. Talk to your employer’s HR department about your pension details. Look at any trust documents from which you are a beneficiary. The most critical step of this factor is knowing how much you will receive and for how long.
Asset Allocation
Your ability to turn your current nest egg into the amount you will need for retirement is dependent on your asset allocation. Investment Advisory Services will choose what investments you should make, but asset allocation is about forcasting what those investments will do. Stay conservative and constantly monitor and modify your allocation as your situation requires.
Monitoring
Just as important as building a retirement plan, monitoring that plan is just as critical. As time passes, you should revisit your retirement plan at least every six months. At that time you will update the plan for actual investment results and interest rates. You can then refine the plan in order to stay on track. |
