Most of us have the goal of someday settling down to retire, after years of hard work and some preparation. It’s no surprise that people are living longer and cost of living is climbing, contributing to the reason why many Americans are retiring at a later age, or even struggling to retire at all. There are also arguments around the ideal age for retirement, which takes into consideration things like Social Security and Medicare. Planning for retirement can be daunting, but with proper income planning, you can feel confident in your plans to retire, ensuring you won’t run out of money and can live your desired lifestyle.
By using income planning as a strategy for retirement, you are able to identify potential income gaps and develop strategies and solutions for meeting your personal retirement goals.
Here are some important steps in using income planning for retirement.
Learn About Your Options and Acknowledge Potential Risks:
One major risk during retirement is outliving your savings, or not having enough income during retirement to either live your desired lifestyle, or pay for unexpected expenses. In choosing your income strategy such as investing in stocks, bonds or purchasing annuities, you’ll want to identify the risks associated with each option and decide what’s right for you. A retirement professional will help you do this.
Identify Income Sources and Expenses:
There are a variety of ways to acquire income during retirement. This might be through investment or insurance planning, helping to ensure that you always have a steady source of income for life. Making a plan for your essential and lifestyle expenses, and comparing those against your identified income and savings is a sure way to create a secure retirement plan.
Create a Reliable Plan:
With a retirement specialists’ help, you should make sure you have guaranteed income streams that will cover your essential, desired and unexpected expenses during retirement. An example of a steady income stream for life is annuities, which have tax-deferred growth potential, income benefits, as well as death benefits. Having a written plan that includes goals, a timeline, and identified expenses and income sources, you will be able to stay on track before and during retirement.
You deserve the retirement you always dreamed of, and the good news is that it is in reach! Contact us today to begin income planning for your retirement.