Retirement Income Planning
"The road to achievement is paved with a plan and the motivation to develop
the persistence you need to get to the end." Napoleon Hill
Planning for retirement is much different than planning for any other phase of life. To get there, not only will you need to preserve and grow the assets you've accumulated, you'll need to turn those assets into a reliable income that will support you comfortably for decades to come. Even if you're years away from retirement it's important to review your mix of investments on a regular basis.
To have adequate income for your journey through retirement, it's important to have a game plan or roadmap if you will. Included in your planned route you'll need to determine your time horizon and tolerance for risk. In addition, you'll need to set goals, apportion your money properly, and then invest intelligently to successfully reach your destination. You'll also need to have a strategy in place to navigate your road's twists and turns. With Ken as your guide you'll potentially accomplish this and learn how to achieve both income and growth while managing risk.
The Income Planning Process
Ken will meet with you, get to know you and discuss your anticipated lifestyle, plans and dreams regarding your retirement. Together he will help you set realistic goals, which may include helping to fund a college education for a child or grandchild or leaving a legacy for loved ones. The discussion may also lead to questions of whether or not you should consider long-term care insurance or convert your traditional IRA to a Roth*. Should you take your Social Security early or receive more by waiting a few years? Whatever your objectives are, Ken will take the time to listen carefully and tailor your plan according to your wishes. He may also work together with your other advisors such as your attorney and accountant.
Next, Ken will work with you to design a sound retirement income plan based on your individual needs. The first step involves estimating future expenses and taking an inventory of potential sources of income. Expenses are usually higher in the earlier years with increased activities, hobbies and travel. As time goes on, these expenses normally decrease as activities diminish. Within the plan can be contingencies built in to address the key risks that retirees face, including the timing of retirement, longevity and inflation.
Ken will then help you implement your plan. As in planning a lengthy trip with breaks along the way, your retirement plan can be constructed in several segments or accounts as well. Ken's practice utilizes primarily a time-segmentation process called NextPhase™ to accomplish this. In the earlier phases of retirement, segments may hold more conservative investments which may help to mitigate risk and generate your initial income. As you travel along the road through your middle and later phases of retirement, segments which have been waiting on the sidelines to produce income, may hold more aggressive investments offering the potential for greater returns. As you proceed through each segment, the enclosed portfolios in turn may be converted to conservative investments and generate income to replace the earlier depleted segments. This strategy may help smooth out the bumps along the way, provide flexibility during your journey and conceivably produce inflation-adjusted income as you progress towards your destination.
Finally, Ken will monitor your income plan on a periodic basis to make sure you stay on course as changes in your life circumstances, the tax code or economic conditions occur. Together you can create a retirement income plan that seeks to persevere in times of uncertainty, prosper in times of opportunity and ultimately succeed as you live your retirement the way you envisioned it.
"Wealth is the absence of financial worry, an income you don't outlive, and a
meaningful legacy for those whom you love." Nick Murray
For a COMPLIMENTARY Retirement Review, please complete the enclosed form and we'll be in touch.
*If converting a Traditional IRA to a Roth IRA, you will owe ordinary income taxes on any previously deducted Traditional IRA contributions and on all earnings. A conversion may place you in a higher tax bracket than you are in now and may not be suitable for all investors.
*Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Past performance is no guarantee of future results. Please note that individual situations can vary. Therefore, the information presented here should only be relied upon when coordinated with individual professional advice.