Retirement Planning Blog

If only retirement income planning were as easy as answering one question: "What is your number for lifetime retirement security?"

That would be nice if retirement boiled down to just one number. But this oversimplifies what it takes to enjoy a secure retirement because, in truth, it requires a customized income planning approach.

Why? Because determining how much money you need in retirement is just as much a personal question as it is a mathematical one.

Just think about your goals and what you might need financially to make them happen. Do you plan to travel? To begin a career 'second act' by getting involved with entrepreneurship or consulting? To donate time and resources to causes that are near and dear to you personally?

Bottom-line, everyone will have different income needs. So, here are five important tips to help guide you through your retirement income planning process. You can also further explore some topics by checking out the other SafeMoney articles linked to throughout this piece.

Congratulations! You have accumulated a nice “nest egg” – or a large lump sum for your retirement. But, believe it or not, just having a hefty portfolio and other assets isn't enough to ensure your retirement security.

There is also the matter of making sure your money lasts for the rest of your lifetime. A retirement income plan will go a long way toward helping you enjoy a comfortable retirement lifestyle.

In other words, building up retirement capital and investing your way to a large portfolio size isn't enough. It's just as important to know what you will do with the money you have accumulated through the development of income and distribution strategies.

If you are among the rare few with a retirement pension, congratulations! You have a benefit that is becoming increasingly rare.

With the 401(k) plan becoming the workplace retirement plan of choice, people hold more responsibility for their financial futures than ever.

Knowing you have a pension gives you the comfort of knowing that, once you retire, you are scheduled to receive monthly income payouts for life. Your income payment will be based on your salary and your length of employment.

Just like with annuity payout options, the lifetime payout option you select with your pension plan will have a direct bearing on how much income you receive.

Recently, Robert Kiyosaki talked about a widespread problem in America: for millions of people, the never-ending struggle with money and financial matters. And why does this challenge continue?

Kiyosaki talks about how he believes the education system is partially responsible. People learn knowledge and skill sets that are conducive to future employment, but almost nothing about good money behaviors and practices. Watch the video below to see more.

Editor's Note: This article is the second feature in a two-part series on the top financial crises in U.S. economic history.

From reading the first recap of the Top 10 Financial Crises in History (Crises 6 through 10), you may have noticed that certain patterns emerge.

Sometimes we have an overblown sense of optimism, even in the face of empirical evidence to the contrary. At times, it has led our country into a number of financial crises. And while these crises have proven to be more exception than norm, they are yet another reminder of how we just can’t put off personal financial planning.

Not only that, history repeating itself shows that every investor is responsible for protecting their own financial future. With the days of employer-backed pensions fading away, Americans are more responsible for their personal financial security than before.

Having all that in mind, here are five more historical market events which remind us that bad things happen to good investors.

By Jim Chilton, CEO and Founder of the Society for Financial Awareness

Editor's Note: This article is Part 3 of a month-long series on financial illiteracy in America. April marks National Financial Literacy Month, and to help raise Americans' financial awareness, SafeMoney.com is teaming up with the Society for Financial Awareness (SOFA), a leading financial literacy non-profit, to spread the word. You can find Part 2, "Want a Comfortable Future Retirement? Start Planning Now," and can read here our dynamic interview with Jim, the CEO and founder of SOFA.

Most of us would agree, as we go through life, we make blunders, mistakes, misjudgments… In short, we all “screw up.” Nothing noteworthy here.

The issue though is, these blunders usually occur from our behavior – the way we are wired. So, when the topic of personal finance, the way we do money, gets discussed, many opinions from many personalities take center stage.

Editor's Note: This article is Part 4 of a month-long series on financial illiteracy in America. April marks National Financial Literacy Month, and to help raise Americans' financial awareness, SafeMoney.com is teaming up with the Society for Financial Awareness (SOFA), a leading financial literacy non-profit, to spread the word. You can find Part 3, "Watch Out for These Financial Blunders," and can read here our dynamic interview with Jim Chilton, the CEO and founder of SOFA.

Have you ever seen a documentary on thrill-seekers heading to some far-flung destination?

Scaling Mount Everest. Base-jumping off Europe’s Troll Wall. Biking on the World’s Most Dangerous Road in Bolivia. Traversing the Alps.

Whether one of these treks or someplace else, chances are you will see that they have something in common. Rarely do the thrill-seekers go it alone.

Their expeditions often include some sort of guide. And not just any guide. It’s someone who knows the terrain, understands the challenges, and offers the experience to successfully navigate potential mishaps.

Although they don’t involve thrill-seeking, money matters can operate in the same fashion. Without guidance from an advisor, it’s easy to make choices that lead not to financial wellness but to fiscal misery.

Editor's Note: This article is Part 2 of a month-long series on financial illiteracy in America. April marks National Financial Literacy Month, and to help raise Americans' financial awareness, SafeMoney.com is teaming up with the Society for Financial Awareness (SOFA), a leading financial literacy non-profit, to spread the word. You can read here our dynamic interview with Jim Chilton, the CEO and founder of SOFA.

When venturing into the great unknown, you wouldn’t travel without a GPS or a map.

They are a “must-have” for reaching your destination. And for arriving on time, for that matter! How otherwise could you tell if you were going the right direction or if you were lost?

The same principle applies to our retirement. Whether you retire 10 years or 10 months from now, you need a financial plan.

In many ways, a plan is like a financial roadmap. It lays out clear directions for you to take and helps you keep on track.

Yet most people don’t have a roadmap for their future retirement. Just three percent of Americans have a written financial plan, according to Jim Chilton, founder and CEO of the Society for Financial Awareness.

Overcoming the “Ready-Fire-Aim” Mentality

And what explains the planning gap?

Editor's Note: This is Part 1 of a series on the worst financial crisies in U.S. economic history. Stay tuned for Part 2 coming up in a short time!

When the economy is tooling along and we find ourselves facing only an occasional hiccup in our money matters that falls short of expectations, it’s easy to feel complacent about the future. Surely life tomorrow will be a lot like it was today.

Except, as anyone who owned a home, a retirement account, or an investment account in 2008 knows all too painfully, our situations can change in a ‘heartbeat.’ And, in turn, they can affect our future outlooks.

To make sure we are all diligent about protecting our financial futures so that we can achieve the retirement we envision, here are 10 valuable reminders.

These historical lessons reinforce the importance of having a financial plan – so you can trudge on ahead or reset your course as needed. They aren't necessarily typical of what might happen in our lifetimes, but they do show the value in being financially prepared.

As you think about the future, consider working with an experienced financial professional, who acts in your best interest, and who can help you make any such determinations. That includes the whens and ifs of any changes that might be right for you. And keep an eye out for part 2 of our series, coming next week.

“What can we do to not run out of money in retirement?” and “Will we have enough money to last as long as we are retired?”

Those are the two big questions which nearly all retirees have. For most of us, though, they are top concerns that what we all worry about as we approach retirement. Then we think about them quite often as we move through our retirement years.

Good news, however. To help alleviate the worrying and wondering, the solution is -- quite simply -- to have a PLAN.