Next up in our UIndy blog series is Retirement Income Planning. You have worked hard for a number of years, and due to a disciplined saving regimen, you have accumulated significant retirement assets. You decide that it’s time for you to “roll over instead of rolling out.” Now what? What is your next step? How will you monetize your assets to start paying you? How much can you take without outliving your money? Which accounts should I draw from first? We help our clients to “remove the guesswork” when it comes to their retirement income planning.
I often get asked, “Will the money I have be enough?” Enough for what? Enough for basic needs like a place to live, food to eat, utilities? That’s merely existing. Retirement is about LIVING, and to put a number on “enough,” you need to imagine how you want to live. Working with a financial advisor to craft a financial plan with a retirement income strategy can help you to enjoy the things you love to do and not have to worry about where your next check needs to come from.
Some Statistics from Fidelity’s 2013 “Higher Education Faculty Study”:
- Only 53% of faculty members under age 55 feel comfortable that they have the money to live comfortably in retirement
- Only 17% of faculty members age 55+ have a retirement income plan created
- Three quarters of faculty members over age 55 report needing some financial guidance, with 36% of those indicating they need help choosing specific investments
- Half of faculty members under 55 said that they needed guidance creating a formal plan for their retirement savings
These are some startling statistics. I help my clients to have a plan in place so that they don’t feel like the faculty members in the first two bullet points. It’s February 10th as I write this post. Have you planned what you are doing/giving for Valentine’s Day? Why would we put more planning and thought into the 14th day of February every year than we do crafting a retirement income plan? Shouldn’t you put an emphasis on planning for the income you need for the next 25+ years of your life? Of course you should! And I can help.
The process that we use at Integrity Wealth Advisors is called the NextPhase™ Retirement Income Planning Process; it is a time-segmented, inflation-adjusted strategy that is designed to help you find a balance of investment choices with different, complementary risk and growth opportunities. The graphic below illustrates how your accumulated retirement assets are divided into different time-segments. The optional guaranteed income segment and the first pool are designed to offer immediate, regular income streams, while the other pools of investments are designed to grow over time. As time goes on, each pool is drained to fill the reservoir that provides your regular income stream. The strategy typically plans for 25 years, at which point the last pool can be divided up again to provide for a longer retirement or used for legacy planning.
I can help you to prioritize your financial goals, evaluate your current situation, put a strategy in place to help you reach those goals, and then monitor your planning each year as “life happens” to keep you on track. I will do my best to ensure that you are able to really enjoy your retirement years and live out your goals and dreams. Having this plan in place can help give you peace-of-mind and the confidence that comes with financial independence. Don’t keep kicking the can down the road. Get a plan in place today before making decisions that become very difficult to reconcile.
Prior Posts in this Series:
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