When you think about your retirement, does it conjure up images of spending more time with your family and doing the things you love? (It should!) Most of our clients have a pretty clear idea of what they want their retirement to look like, but that vision is often clouded with feelings of anxiety over unanswered questions and life’s uncertainties. Fortunately, smart planning – and having a well-rounded team of experts by your side – can forge a clearer path to the future you want.
Think You’re Prepared to Retire?
Even some of our most informed clients are surprised to find out they don’t yet have the best plan in place to balance the life they live today with the life they want in retirement. Retirement income planning, which goes well beyond basic wealth management, involves making a plan to coordinate all of the decisions today’s Boomers face to provide enough income to pay the bills and prepare for uncertainty. But most Americans are not as knowledgeable as they should be to face these decisions. Only 20% passed The American College’s recent Retirement Income Literacy Quiz, and the average score was only 42%. Try it – and see if you can you do better!
Retirement Income Planning vs. Wealth Management
Retirement income planning is still a relatively new field with different dynamics than traditional wealth accumulation. After a lifetime focused on maximizing wealth or beating a benchmark, your goal becomes creating sustainable income over an indefinite length of time – the rest of your life. Retirees must manage risks like market performance along with their own longevity and the uncertainty about their spending requirements.
When an individual retires after participating in an employer-sponsored retirement plan, the employee normally elects to take a lump-sum distribution (if available) rather than an annuity that would pay a set amount month after month. But most people don’t appreciate how complicated it is to manage withdrawals from a portfolio and create their own retirement income stream.
This process requires making investment decisions, allocating assets and choosing how much to withdraw each year without depleting the portfolio. And regardless of how good your decisions are managing your investable assets, there’s no guarantee your money won’t run out. On top of that, all these decisions may become more difficult with age.
Decrease Uncertainty. Build Confidence.
Developing a lifetime income strategy today can establish a base level of income that is available to meet critical needs in the future – regardless of market conditions. Removing uncertainty and guaranteeing the income you’ll need in retirement – no matter what life throws at you – can help you feel more confident and happier when you think about your future. So, when you daydream about the retirement you’ve earned, that vision can remain crystal-clear because you’ve built on a solid, secure foundation.
Let’s Get the Conversation Started! Request a private retirement income planning consultation. With your input, we’ll generate your personalized “Income for Life” report. This is a free offer and is without obligation.