Every Retirement Plan is different, but there are six steps everyone should take.
The purpose of this program is to help everyone achieve financial security, because planning for retirement is like planning for anything else. You need goals, information, advice, education, and decision-making.
Planning for retirement is also unlike anything you have ever done.
It requires a paradigm shift in how you think about and use your money, it requires a lot of trust in the people you work with, and it may be the largest financial venture you ever embark on in your life. To retire wealthy and to meet your goals, you need to learn how to do it. This program is intended to outline educational information that walks you through the six sectors of retirement planning.
By chronologically completing these steps, you will get your metaphorical ducks in a row as you approach retirement. The scarcity of company pensions, a historically low interest rate environment, and high market volatility make retirement planning more important than ever. There is no simple or easy way to fund your lifestyle for the rest of your life. You need to be smart, deliberate and strategic with your financial decisions. Transitioning into retirement is more than leaving your job and living off of your savings. It involves new decisions about health insurance, Social Security benefits, income, risk tolerance, and your future financial goals and legacy. Perhaps most importantly it marks the shift between earning and saving money to distributing and spending your savings and investments. This paradigm shift between the accumulation and distribution phases of your financial life is one of the most challenging financial puzzles you will ever have to face.
As you prepare to use your life savings to fund your lifestyle, it is time to practice more caution, protect more of your money from risk, and secure guaranteed sources of income from your assets. Luckily hundreds of thousands of people have already gone through this process, and their record of successes and failures can be useful to you as you formulate a plan. You can see what has worked and what hasn’t and use that information to make your own retirement road map. Every retirement plan is different and requires a customized approach, but there are six main sectors that everyone should understand. Breaking retirement down into six digestible pieces helps to make sure every base is covered and allows people to move forward at the pace they are comfortable with. The six sectors are Medicare, Social Security, Income, Risk Tolerance, Tax, and Legacy.
Sector Planning starts with Medicare
This is a very important sector, because the decisions you make determine your future medical costs.
Then we move on to Social Security
This allows us to estimate the amount of your monthly income that’s NOT your responsibility.
The Income Sector is all about transitioning from a PAYCHECK to PAYING YOURSELF.
Because when you retire you become unemployed for the rest of your life. Which means you NEED a plan to NOT outlive your assets.
The rest of your retirement assets which are NOT earmarked for income, get addressed in the Risk Tolerance sector.
Here we focus on risk and timing, because we want you to make the highest return, without risking your principal dollars.
Once we have a good idea of your overall situation will can start to focus on TAX.
Our goal is to teach you proactive tax planning strategies, so you can reduce your overall tax burden.
And finally after everything is in place we can move on to Legacy Planning.
Estate, simply put, is basically everything you own. Legacy comes into play when you start to decide how you’ll be distributing everything you own.