Retirement Income Planning
Retirement Income Planning
People are living longer and facing risks to their savings, so having a guaranteed monthly income for life can be a vital part of retirement income planning. One of retirement’s greatest fears is “outliving the savings.”
The “fragile decade” is that period that spans the last five working years and the first five years of retirement. It is particularly fragile because investors in this phase of their lives are vulnerable to the sequence of returns risk.
Sequence-of-returns risk, or sequence risk is the risk that an investor will experience negative portfolio returns very late in their working lives and/or early in retirement. Sequence-of-returns risk is a significant threat because retirees have little time to make up for losses that are compounded by the simultaneous drawdown of income distributions.
What is my spending capacity and risk-based guardrails to adjust my monthly income so that it can last my lifetime?
We identify your spending capacity from your expected income and expenses and then follow guardrails to adjust your income according to economic fluctuations or potential changes due to market downturns.
How much protected monthly income will I need in retirement?
We calculate your expected monthly income during retirement. We use an accumulation of your savings, current investments, and other sources of income, such as Social Security, to estimate how much cash flow you can expect each month. We account for future issues, such as rising prices and unforeseen healthcare expenses, to ensure that our calculations are accurate.
One solution is to consider an annuity, which can provide protected monthly income to supplement your savings, investments, and Social Security. An annuity can provide you with guaranteed monthly income that you can’t outlive.
Social Security Optimization
Social Security is a complex program, and the retiring population needs support navigating the tricky claiming decision process. If you’re like most retirees, your Social Security benefit represents years of savings and hard work. You may plan to use it to build your retirement income. Though you may have some basic familiarity and knowledge about filing for Social Security benefits, far fewer people can determine the optimal way to file so they can maximize their benefit and combine it with other retirement strategies.
Our Social Security Maximization Report can help you determine the best time to retire and begin collecting your Social Security benefits. This report has proven valuable to our clients, who receive an estimate of their monthly Social Security income based on their retirement age. But with our help, you can also examine other factors that may affect your decision, such as other benefits or health concerns.
As you approach retirement and begin to rely on your benefits, it is important for you to be informed and have a strategy in place. We are committed to helping you get the most out of those benefits so that you can take one step closer to the retirement of your dreams!
