What is the best way to plan for retirement? Retirement planning involves three main phases:
Each phase often requires a different investment strategy and typically has different risk tolerance profiles. During the accumulation phase, most investors can generally benefit from a higher risk tolerance but as investors move towards retirement, their risk tolerance typically decreases. Your risk profile is one of the factors that will help determine the types of investments that are most appropriate for you.
Let your Allen & Company Financial Advisor help you build a solid retirement plan that fits your needs and stage in life. We can also assist you with tax-deferred retirement accounts, such as 401(k), IRA, and 403(b) accounts as well as rollovers and pre- 59 ½ withdrawals.
Do you know how much you need to retire?
Trying to figure out how much you will need to live on during your retirement years can be difficult. Your retirement income needs will depend on a variety of factors, including your current age, desired retirement age, and the type of lifestyle you would like to have after you retire. Your Financial Advisor is here to assist you. We can help you envision your future and then create a solid road map towards that vision so that you can achieve your goals.
Your advisor will also meet with you to ensure that you have the right investment strategy for the current market conditions and to factor in any changes in your assets or retirement plans. We can help keep you on the right path towards your retirement plans.
Accumulation Phase: Building your retirement nest egg. It is never too early to start saving. In fact, the earlier the better. The accumulation phase typically takes place during your career-building years, making this the ideal time to create a retirement plan and start accruing savings. The benefit of saving for retirement early cannot be overemphasized. The benefit of saving for retirement early cannot be overemphasized. When saving for retirement or other long-term goals, you want time on your side. Beginning a savings plan early increases the likelihood that you will be able to accumulate a greater amount of wealth. If you procrastinate saving money today because it can be saved tomorrow, you may incur an unseen cost. The cost of procrastination is the money you forfeit that you could have been earning on your savings.
Pre-retirement: Preparing to retire within a few years. As you get closer to retirement, your Financial Advisor will help you re-evaluate your investment strategy based on your current portfolio value as well as any changes in your lifestyle plans, health, or risk profile. Your advisor will also guide you with adjusting your investments if necessary to make sure that your retirement savings are protected from fluctuations in the market and can help you with your transition from the working world to retirement.
Retirement: Living off of your savings. Whether you have recently retired or have been retired for awhile, your Financial Advisor can help you realize an income stream from your retirement savings and investments to make sure you are able to have the retired lifestyle you planned for without exhausting your savings prematurely.
Do you have a solid plan for retirement in place?
Whether you need to get started or make sure you are on the right track, your Allen & Company Financial Advisor
Contact us today and let us know how we can help you.