Retirement Planning
With life expectancies increasing, many people spend up to one-third of their lifespan in retirement. So it's essential to prepare for these years, and put your investments to work to account for them.
Over the years, the amount of Social Security paid out to retirees has steadily decreased. As such, Social Security funds should be considered a supplement to retirement income, not a mainstay. And while it's essential to take advantage of company-sponsored, tax-advantaged retirement plans such as 401ks and SEPs, most people will need to supplement these plans to maintain their standard of living during retirement.
A comfortable retirement requires some in-depth strategic planning. During different stages in your life, it will be important for you to invest different amounts of income into different types of investments. Proper asset allocation - the concept of diversifying your investments between an appropriate mix of stocks, bonds and cash - will play an important role in this task.
Strategies for Success: LifeCycle Management
- Starting Early: Investing even a small amount regularly in your 20's and 30's can accumulate into quite a large sum by retirement. At this time, you can afford to take on more risk, since you have time to make up for market downturns.
- Mid-Life Accumulation: As you move into your 30's and 40's and are more likely to be a higher earner, you'll want to start socking away a higher percentage of your earnings.
- Balancing PrioritiesWe'll need to determine an appropriate balance of saving for retirement and other priorities, such as home buying or your children's education.
- Strategic Rebalancing: In your 50's and 60's, you'll want to take on less investment risk and realistically assess whether you've planned appropriately to meet your retirement goals.
- Retirement: Your retirement plan doesn't end when you start retirement. We'll help you determine which parts of your plan should be spent first, and how to allocate the remainder of your dollars.
While retirement may seem like a long way away, the earlier you start, the easier it'll be to get there. WorthPartners can help you build, maintain and stay on track. Give us a call and let's get started.
