A lot goes into retirement income planning. You have to estimate how much you’re going to spend years from now, when sometimes it’s difficult to know what you’re going to spend this year. Cars break down. The roof leaks. The furnace needs to be replaced. Life is a cornucopia of who-knows-what will happen next.
In addition to knowing what you’ll need once the paychecks stop coming in, you’ll need to consider what tax bracket you’ll be in. You’ll need to project how your assets will fare from now until and through retirement. Yet if there’s one thing we know, it’s that we can’t predict the markets and we can’t rely on historical performance to repeat itself.
[CLICK HERE to read the article, “Winging It in Retirement?” at The Center for Retirement Research at Boston College, Jan. 22, 2015.]
Then there’s the issue of health. Some people are fortunate and suffer only the minor aches and pains of getting older. Others develop more serious chronic conditions, both mental and physical. Taking screening tests and conducting a comprehensive family history can help spot genetic predispositions to certain conditions. But even then, some people who are predisposed go unscathed, while others with no genetic markers acquire some unsuspecting ailment that changes their retirement plans.
[CLICK HERE to read the article, “Careful planning can ease retirement’s health costs,” at CNBC, Jan. 20, 2015.]
This income planning process for retirement can seem bleak, but perhaps it’s only a matter of approach.
Remember when you saved for your first car, or your first home? Even just saving for a deposit, first and last month’s rent before you could move into your first apartment may have seemed insurmountable. But you did it, eventually, and it felt great. Like freedom. Life was yours for the taking, and you were in control.
[CLICK HERE to read the article, “‘Intergenerational’ retirement home sees students live alongside the elderly,” at CTV News (Canada), Dec. 7, 2014.]
[CLICK HERE to read the article, “What to Know about Money and Work by 50, 60, 70,” at NextAvenue.org, Jan. 6, 2015.]
You can approach retirement income planning in a similar way. It’s just another one of life’s great adventures, and the more you focus on the strategy, the more in control you may feel. Regardless of market volatility, job insecurity, emergency expenses and health concerns, the more you prepare for unexpected adverse events, the more contingency options may be available to you. Like so many other things in life, some variables you can control better than others.
[CLICK HERE to read the article, “Retirement planning isn’t just about the money,” at CNBC, Jan. 21, 2015.]
[CLICK HERE to read the article, “Plan for a Long Life When Saving for Retirement,” at Kiplinger, February 2015.]
It’s important to plan for the long term through healthy choices. In this way, retirement income planning is similar to lifestyle choices. Let us help you devise a strategy designed to support your unique situation.
Our firm assists retirees and pre-retirees in the creation of retirement strategies utilizing insurance products. Our firm is not permitted to offer, and no statement contained herein shall constitute, tax, legal or accounting advice. Be sure to speak with qualified professionals before making any decisions about your personal situation. Our firm is not affiliated with the U.S. government or any governmental agency.
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Source: Woods Blog Old