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Great Advice From Our Experts

Failing to Plan is Planning to Fail

June 9th, 2018

Retirement is the end goal for most of us. It’s even in our minds in the beginning of our lives. From the first interview with that company to getting your first real paycheck, we can’t help but think, “What about that pension?” or “How much of my new paycheck will I put in my IRA?”

Instead of panicking, it is best to prepare. In the same way that there are many ways your retirement can go wrong, there are also many ways that it can go right. There are so many different factors that play into preparing for and eventually retiring. Instead of letting life come at you with surprises, prepare yourself for the road ahead.

There are generally three areas of your life that heavily influence your eligibility, as well as your quality of, retirement; Yourself, Your money, and your plans for both. Between healthcare, vacations, and the basic expenses that just come with living, retirement isn’t the easiest task when you’re living out of a piggy-bank.

First things first, are YOU ready to retire. You could be too eager to quit your job, or you could be too eager to clock into work tomorrow. Being able to retire takes more than a pension and a timeshare somewhere warm and sunny. To be ready to retire you have to make sure, your personal life is ready to retire as well. This could mean anything from using that last few years of corporate insurance to get that surgery you’ve been putting off, or making sure your youngest’s braces are still covered when they need to come off for the senior pictures. Not to mention the increase in healthcare as you grow older. It is important to understand that, although your lifestyle may remain consistent, the bills will not.

There are many areas of your personal life that will be disrupted by retirement, let alone the planning. It is important to make sure that your retirement is prepared for any unforeseen road bumps that could disrupt the blueprint of your golden years.

When retirement comes you will have so much free time you won’t even know what to do with yourself. But as we know, idle hands are the devils workshop, and his craft is spending your retirement fund. Although your retirement fund is probably nice and healthy, it is not unlimited. Drawing money from your nest egg at 4% is not a plan that is prepared for surprises. One source of income is not enough to last you the long and best years of your life. You worked your whole life for your money, its important to make sure that your money is working for you. When brokers mention ‘diversity’ in your portfolio they are usually talking about investing your money in different sectors of the stock market to avoid a total loss if one industry hits a rough patch. REAL diversity in your portfolio is putting your money in a wide range of investment vehicles that can supplement your income in different types of ways. There are three things that you are generally looking for in their investments; growth, liquidity, and safety. Annuities, real estate, and other alternative investments can give your portfolio the flexibility that they need. Annuities have the ability to give you a paycheck in the mail every month. But if you tie up all of your money in one spot, you are going to replace your control over your money for that security. Stocks give you liquidity over your money as well as growth. However, there is little security in the market when there is a sudden correction and you’re on the wrong end. So not only is having enough money a requirement to retirement, but so is knowing what to do with it, and what you want to do with it.

Your plans for your retirement are the skeleton that frame the rest of your retirement. If you plan on selling a home or moving to another state you need to consider how your income will change and the cost of living. Weather you need growth, security, or liquidity in your lifetime it is important to plan accordingly and create a portfolio that is built by you, and for you. Make sure that you are ready for whatever the world throws at you. Call now and make sure that your retirement fund, your families, and you are ready for retirement. Remember Plan Smarter and Live Better.