Planning Retirement

Don’t Overlook This Potential Retirement Dealbreaker

Don't Overlook This Potential Retirement Dealbreaker

Sure, many people stress over money issues. From mortgage payments and other bills to household spending and transportation costs, more than a few financial stressors are taking a toll. But retirement is quite different from the earlier stages of life. What may be Americans’ top money stressor as they venture into their retirement years?

According to a recent survey by Allianz Life, a top economic worry is inflation. Nearly one-third, or 32% of Americans said that they are “panicked” or “very worried” about inflation and its effects on their retirement.

It’s good that retirement investors are aware of inflation, but many underestimate it as a significant risk. In the survey, 64% said they don’t have a plan to address inflation. Among the 36% who do, 51% indicated “being more frugal with their money” would be their plan of action. And what about when it comes to actual planning? The Society of Actuaries reports that 45% of retirees and 28% of pre-retirees neglect inflation in their retirement plans.

Because inflation can be a real dealbreaker for retirement lifestyle – especially as lifespans increase – here’s a look at the power-punch that inflation can land over time. Read More

Safe Money Retirement – 4 Tips to Retire Happy and Safely

Safe Money Retirement - 4 Tips to Retire Happy and Safely

Whether you are in your 40s or approaching retirement, long-term financial planning should be on your mind. If you want to enjoy a comfortable lifestyle, but you will no longer receive income from a full-time job, you will need to think about cash-flow from other sources, including Social Security, lifetime savings, a retirement portfolio, and maybe some other sources.

While each individual situation will require a specific approach, it’s a good idea to get a general idea of some retirement planning fundamentals. Two primary aspects of financial planning for retirement are wealth preservation and income certainty. Not only should a financial plan match retirement expenses and costs of living with income streams, it also needs to account for how income-producing assets will last as long as you need them to.

Say your risk tolerance tilts toward the conservative spectrum, or where appetites for stomaching financial losses are low. Then you may want to evaluate retirement strategies that provide the emotional comfort of knowing where your money will be coming from, month-to-month, to pay household bills and expenses. We call this Safe Money retirement planning – or making assurances that the money you can’t afford to lose is under the “lock and key” of contractually guaranteed protections.

Of course no retirement success springs up overnight. So, here’s a quick look at 4 simple steps to help you reach more long-term financial wellness and peace of mind. Read More

Longevity Risk and Retirement Planning: Tips for Overcoming Uncertainty

Longevity Risk and Retirement Planning: Tips for Overcoming Uncertainty

A number of recent studies indicate that today’s Americans have a higher life expectancy compared to previous generations. The Social Security Administration suggests that after reaching the standard age of retirement, 65, U.S. men and women may anticipate living at least a couple of decades more.            

There is no denying the fact that a longer life is a reason to celebrate. However, this increased longevity certainly adds new challenges in the process of retirement planning. While living a longer life is a worthy milestone for most, whether it will be enjoyable is largely based on the question of whether its quality is high. So, it’s prudent to pay careful attention to longevity risk in retirement planning – that way you are well-prepared for the uncertainty of potentially spending decades in your post-work life stage. Read More

3 Retirement Planning Mistakes to Avoid

3 Retirement Planning Mistakes to Avoid

How should I invest for retirement? And during retirement? There’s a lot of great advice to answer these questions – a wealth of strategic financial tips for nest eggs of all sizes. But equally important is what not to do. Below are 3 retirement planning mistakes—avoid them at all costs. Read More

Planning for Longevity in Retirement

Planning for Longevity in Retirement

Good news: People are living longer. But it does come with downsides. For one, increasing lifespans bring greater financial risk, like outliving your retirement money or forking over income for costly health expenditures. Then there is the evolving question of what a longer retirement looks like.

Just some decades ago, many Americans shared a common vision. You worked for the same company for years, often in exchange for a defined-benefit pension. Then you left your job and shifted into a post-work lifestyle, drawing on your pension and living comfortably.

However, times have changed. As evolving trends and statistical projections indicate, retirement could last as long as 20-30 years, or perhaps even 40 years! Now it’s hard to define what retirement should be. That brings yet another challenge: How can we prepare financially for an extended post-work lifespan?

If you wonder about what you can do, here are some quick tips you can put into action. Before we go into those, let’s address an important topic affecting the near future: the pace at which longevity has changed over time. Read More

Don’t Get Blindsided by Unexpected Retirement Costs

Don’t Get Blindsided by Unexpected Retirement Costs

Finances continue to be a top retirement concern, as surveys show. In a recent study by the American Institute of CPAs, 57% of CPA financial planners reported their clients’ foremost retirement concern was “running out of money.” When asked what the sources of this client stress were, 76% of the financial planners said healthcare costs. Other causes of financial stress were lifestyle expenses (52%) and unanticipated costs in retirement (47%).

Given these concerns, it’s critical to ensure we’re ready for monthly income needs in retirement. But there are a number of retirement expenses which can give us the slip. Some costs are hard to project, such as healthcare costs. Then there are life changes which can completely transform a retirement budget, such as doting on grandchildren.

Here’s a look at some retirement costs to keep in mind – and to help you avoid the financial shock of unexpected or harder-to-predict areas of retirement spending. Read More

5 Ways to Compromise Your Retirement Plan

5 Ways to Compromise Your Retirement Plan

Through careful deliberation, many Americans have figured out their retirement planning requirements. But a comfortable retirement needs more than just creation of a financial strategy. It also means sticking to the plan you have developed.

Of course, there are some events beyond our control, events which can disrupt a retirement plan. Stock market downturns, costly unforeseen situations, and medical emergencies are a handful of such occurrences. There are some ways to mitigate the effects of these situations, but there are other mistakes which can prove detrimental to retirement security.

Here’s a look at some pitfalls which can put a retirement plan on the line – and which we recommend you take measures to avoid. Read More

3 Retirement Pitfalls You Should Avoid

3 Retirement Pitfalls You Should Avoid

You’ve worked hard for many years. Upon retirement, most people would like to live on their own terms. Maintaining a comfortable lifestyle requires you to take the proper steps to secure it. That includes avoiding common errors which could put your retirement finances at jeopardy.

With precautions in order, retirees will be more prepared to enjoy a secure – and hopefully financially confident – future. Having said that, let’s cover a few pitfalls which could do a number on your financial security. Read More

5 Retirement Mistakes You Can’t Afford to Make

5 Retirement Mistakes You Can't Afford to Make

According to a survey from the Employee Benefit Research Institute, just 21% of American workers are “very confident” they’ll have enough money for retirement. After many years of hard work, most people would like a comfortable retirement lifestyle. But this doesn’t just come together by itself.

Financial independence in retirement takes diligence, and it begins with creating a suitable retirement income plan. Then once you have this “retirement roadmap,” it’s a matter of sticking to it. Of course that involves taking action when you need to, like filing for Social Security at the right time or signing up for Medicare on deadline.

There are a number of costly mistakes which could greatly impact your retirement. These errors could mean higher unnecessary costs or lowering your standard of living down the road, so it’s important to be aware of these potential pitfalls. Let’s cover these retirement risks in detail. Read More

What’s Your Risk Capacity: Why It Matters

What’s Your Risk Capacity: Why It Matters

Last week we discussed the value of having a guaranteed retirement income source. Annuities offer some strong advantages with their contractual guarantees. But they are only one part of the financial picture.

Overall, a portfolio could have many holdings: stocks, bonds, mutual funds, annuities, CDs, or even other financial instruments.

This brings up the question of portfolio allocation. Is there a paradigm which you should follow?

Ultimately, we would say it varies among individuals. Your portfolio strategy should be a good fit for your current situation, needs, goals, risk tolerance, and risk capacity.

Of course there are some well-known general rules of thumb for starting discussion, like the Rule of 100 for portfolio diversification

As you get closer to the life stage of distribution — or where you are living off your retirement savings — risk tolerance and risk capacity become even more important. But just what are these risk-related metrics? Read More

Next Steps to Consider

  • Start a Conversation About Your Retirement What-Ifs

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    Start a Conversation About Your Retirement What-Ifs

    Already working with someone or thinking about getting help? Ask us about what is on your mind. Learn More

  • What Independent Guidance
    Does for You

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    What Independent Guidance
    Does for You

    See how the crucial differences between independent and captive financial professionals add up. Learn More

  • Stories from Others
    Just Like You

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    Stories from Others
    Just Like You

    Hear from others who had financial challenges, were looking for answers, and how we helped them find solutions. Learn More

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