Planning Retirement

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

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

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

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

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