Planning for retirement can be painful – so little time, so many questions, a lack of resources, whom do you trust, etc. We’ve prepared a strategic list of things to consider that will make the job of retirement planning a bit easier whether you are in your forties or fifties:
1. Define your cash flow: Develop a budget that accounts for income and expenses and reflects both your saving and spending patterns;
2. Create an income strategy: It should have 2 components – building assets to fund retirement and then using those assets to generate income in retirement;
3. Get a handle on inflation: Have a provision for increasing income or reducing expenses to account for inflation, especially in healthcare costs;
4. Calculate your risks: Diversify your investments, and remember as you get closer to retirement your timeframe to recover from losses is shorter;
5. Examine fees: They may seem small but add up over time, fewer fees mean more money in your pocket;
6. Review insurance: Regularly check your insurance coverage and be sure you are in the most cost-effective plans;
7. Plan for longevity: Folks are living longer, that means your money has to last longer as well;
8. Social Security timing: Don’t leave money on the table by claiming benefits too soon or not coordinating with your spouse;
9. Withdrawals: When you begin retirement, making withdrawals from your investments will have a negative impact and tax consequences as well; and
10. Ask for help: Get educated. The right retirement vehicles and strategies can make all the difference, be sure they are tailored to your goals and needs.
The earlier you start to think about your goals, and the sooner you develop a savings strategy, the better your chances of achieving your desired retirement lifestyle. Cutting costs and living within a budget is difficult for most folks, but achievable if you make a conscious effort and are committed to a savings plan. Remember to revisit your retirement plan often and any time there is a change in income, in your personal or business circumstances, or your overall goals change. There is a time to focus on growth and income, as well as an appropriate time to focus on wealth preservation. When you do retire, there are tax efficient withdrawal strategies available that can control the amount of tax you will pay.
Still have questions? The Financial Advisors at Fuoco Group’s TFGFA have answers. Proper planning and preparation can help you take control of your financial future! Contact us via the links below, or call Mike Bytnar at 734-637-4688 or Ted Bytnar at 586-709-1947.
Michael J. Bytnar, Certified Financial Planner; Retirement Income Certified Professional
Theodore G. Bytnar, Certified Financial Fiduciary; Licensed in Life and Health Insurance, Property and Casualty Insurance.
TFG Financial Advisors, LLC is a registered investment advisor. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any securities, and past performance is not indicative of future results. Investments involve risk and are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed here.
