If you have not downloaded our FREE Retirement Guide yet, you most certainly should! Get your now by clicking HERE! If you are getting ready for your next phase in life- Retirement- you’ve come to the right place. It means you have decided to take a more active role in managing your money and financial future. Between work and how busy our personal lives can become, taking time to manage your finances often gets pushed to the bottom of the to-do list.
We work with clients, helping prepare them for what we call the second act of their investing lives. The first act is what you did up to this point; investing and saving for your retirement. Now you will face some difficult financial decisions as you transition from working and saving into retirement and spending your savings. That’s where we are here to help! Again, to get a more detailed guide, download your FREE retirement guide right now, by clicking HERE.
Step One: Get Organized
Step one, as you ease into your retirement and planning, is getting organized! This means getting all your information, and ducks in a row, getting all your finances/assets are in order. In this step, you will want to take a good look at your approximate monthly expenses, by looking at your last year of total expenses. Put together a little chart for each category. These categories will include things like Income, Amount in Banks, Savings, Loans, IRA Accounts or other Retirement Accounts, Stocks and Bonds, all assets, etc. Create a little handmade chart to start your organization, and begin gathering all your information in one area. Here’s an example of a chart you can reference for each category:
To get a more detailed guide on what exactly what to chart, and how, you will need your detailed guide (download your FREE Retirement guide right here).
Step Two: Creating A Plan
Step two is pertinent to making sure you have planned out your retirement finances properly, so that you can retire in peace knowing you have enough funds to last you. There are two phases in our investing life. The Accumulation phase, and the Withdrawal phase. Retirees can make a big investment mistake by using the same investment strategy for withdrawing their money as they used to accumulate it. Minimize the impact of Withdrawals with the bucket strategy. The first ‘bucket’, is your income bucket, where you will keep 1-2 years of cash flow in very liquid assets. Your second ‘bucket’ is your income later budget, where you should keep an additional 2-3 years of cash flow.
Download our FREE Retirement guide HERE, to read more and get more details in creating your retirement plan!
Step Three: Taxes
You will want to consider Taxes and Inflation while you are creating your retirement plan. It’s easy to forget that any money coming out of retirement accounts like IRA’s or 401k’s, will be subject to ordinary income taxes. As well, we all probably notice that things get more expensive every year. When you’re working that isn’t a big deal. With raises and promotions, you don’t have to pay as much attention to inflation while working. But, once you retire, most of your income will be fixed so inflation will become more of a concern.
Download your retirement guide HERE, to learn how you can maximize tax benefits of your retirement accounts!
Go ahead and download your guide, and get everything you can organized and planned out! Then you will want to get with your financial advisor to look over your plans, and help you organize further and set your plans in stone.