Retirement Income Planning

The #1 fear for most retirees is running out of money. Knowing when and how to retire is one of the most important financial decisions a person will make.

We specialize in helping our clients prepare for retirement and as they approach retirement we help create an investment portfolio that aims to generate an income that is stable and sustainable. Managing money before retirement is much different than managing money during retirement.

We start by developing a composite picture of your envisioned post-career lifestyle, estimated essential and discretionary expenses, and inventory of potential financial resources. Before you can transform this picture into a practical road map toward financial independence, however, you need to understand and integrate into your plan five factors that may put you at critical risk in reaching your retirement income goals:

  1. Longevity

    Many people underestimate their lifespan and risk outliving their assets. The facts indicate that half of the population may outlive the “average” life expectancy. A lifetime income plan helps our clients prepare for living well into their 90s.

  2. Inflation

    The anticipated longer retirements and the impact of inflation make it more important than ever that portfolios include investments with the potential to outpace inflation.

  3. Asset Allocation

    Many retirees think they need a conservative portfolio, but given the anticipated length of their retirement, this could create a heightened risk of outliving their assets. One of the keys to pursuing your goals may lie in balancing your income portfolio with your growth portfolio.

  4. Withdrawal Rate

    Determining the proper withdrawal rate from your portfolio to generate a retirement income is critical — it could dramatically decrease the likelihood of retirees outliving their assets. This rate is determined based on your assets, your health, your lifestyle and the level of risk you’re willing to take. Risk Management is a critical component to a sustainable income.

  5. Health Care Expense

    Rising health care costs coupled with inadequate coverage can have a devastating impact on a lifetime income plan. Addressing this risk may mean targeting savings specifically for health care and considering purchasing long-term care insurance.