Retirement Income Strategies

What does retirement really mean to you, and why is having a retirement income strategy such an integral part of your retirement? To put it simply, before retirement you work for money – but after retirement, your money works for you.

And according to multiple surveys, the number one concern for retirees is that their money will not last as long as they will. Therefore, making sure your money lasts for your lifetime requires not only a strategic plan but also the successful implementation of that plan—while avoiding the potential landmines of retirement.

To discern what decisions may be best for you, we use our SMART 4 Wealth Planning Process to discover all aspects of your needs and pick strategies that fill each need. Retirement Income Strategies are a part of this process.

There are two steps in the development of your strategic plan.

The first is working through a discovery process with a strategic financial consultant. During this process, the planner will gain a better understanding of your current situation through a variety of questions and then use this information to create your Retirement Income Strategy to help identify any potential annual cash flow shortfall or surplus.

  • If you have an annual income shortfall, that means you need income from your retirement investments, and your consultant will develop an income strategy to help you determine which asset to draw from and when. Once you know which asset to draw from, you need to decide if that asset is designed for more predictable income or more potential income. If you desire more predictable income you could be losing out on increased income in the future, and if you desire more potential income you risk having less income than desired during poor markets.
  • If you have an annual income surplus, congratulations! You do not need income from your investments. At this point, your focus will shift to getting growth on your investments, and whether you want more predictable growth or more potential growth. If you choose more predictable growth you could be sacrificing larger gains long term, but would have the comfort of being able to rely on more consistent returns. If you choose more potential growth, you would be giving up that comfort for potentially larger gains. The good news is, the choice is yours!

So now you have a plan, and a consultant to help you implement your plan with excellence, while avoiding hidden landmines that could derail your retirement. Your consultant will help you develop contingencies to avoid any unforeseen landmines, which may include:

  1. The unexpected death of a spouse that could decrease your income.
  2. End of life care expenses for your parents or in-laws that could drain your reserves.
  3. The degrading health of a spouse or yourself that may
    requires expensive medical treatment.
  4. Crises and market downturn that could drain your accounts.
  5. Possible increased taxes in retirement.
  6. Inflation that could make your money worth less as the years go on.

Your retirement income strategy is the backbone of your retirement plan.

We want to help you create and implement your plan and avoid hidden landmines.

You can make your appointment online to schedule your wealth services discovery meeting or call us at (517) 719-5421.

Schedule Your Appointment Now!