when retirement concerns shift from how should i accumulate funds for retirement? to will my...
TRANSCRIPT
When retirement concerns shift from
How should I accumulate funds for retirement?
to
Will my retirement funds last
throughout my retirement?
You need a…
Shifting Retirement Concerns
Are you planning for enough years?Will you run out of money?
How long will your retirement last?
Your Life Phases
Children grown,
Just Two of You
Children Off to
College, Focus on
Career
Home Purchase,
Children
Start Career, MarriageHigher Education,
Trade School
Planning for your life
Natural phases
Determined by activities
Planning for all retirement years
Retirement phases
Classify by activities
Retirement Lifestyle Phases
Pre-Retirement – the “Decision Phase”
Decisions that affect your income for life.
Take Social Security when first eligible?
Do you stop working, or just slow down?
Decisions that change your retirement lifestyle.
Retirement Lifestyle Phases
Decisions (Pension,
Soc. Sec., Changes)
Initial Retirement
Little change
Work replaced with hobbies, travel, activities, etc.
70% of current income for basic needs (adjusted for inflation)
20% for current income extra activities (adjusted for inflation)
Retirement Lifestyle Phases
Decisions (Pension,
Soc. Sec., Changes)
Travel, Hobbies,
Activities
Seasoned Retirement
Decreased activities
Less travel, hobbies, and other activities
70% of current income for basic needs (adjusted for inflation)
10% for current income extra activities (adjusted for inflation)
Retirement Lifestyle Phases
Travel, Hobbies,
Activities
Less Activities, Less
Travel
Decisions (Pension,
Soc. Sec., Changes)
Matured Retirement
Much less activities
Health or other physical limitations
70% of current income for basic needs (adjusted for inflation)
No additional income needed due to no additional activities
Retirement Lifestyle Phases
Less Activities, Less
Travel
Reduced Activities, Health
Considerations
Travel, Hobbies,
Activities
Decisions (Pension,
Soc. Sec., Changes)
Survivorship Years
The lifestyle costs after losing your spouse are usually at least 60% of pre-retirement income.
Retirement Lifestyle Phases
Reduced Activities, Health
Considerations
Period Following a
Death
Less Activities, Less
Travel
Travel, Hobbies,
Activities
Decisions (Pension,
Soc. Sec., Changes)
Inflation continues to rise each year
Retirement income needs to increase
Maintain spending power
Preserve your lifestyle
Retirement Must Consider Inflation
Steps for Your Retirement Journey
Determine the likely times of your retirement phases
Examine lifestyle requirements for each phase
Basic Needs
Additional Wants
Total Desired Incomeequals
Steps for Your Retirement Journey
plus
Determine source of retirement income
Social Security
Pensions
Qualified Retirement Plans
Annuities or Other Income
Steps for Your Retirement Journey
Determine the likely times of your retirement phases
Steps for Your Retirement Journey
Examine lifestyle requirements for each phase
Basic Needs
Additional Wants
Total Desired Incomeequals
plus
Determine source of retirement income
Social Security
Pensions
Qualified Retirement Plans
Annuities or Other Income
Steps for Your Retirement Journey
Desired Income Requirements
Known Sources of Income
Remaining Requirements
Remaining requirements may be provided by your available assets for retirement.
equals
less
Calculate remaining requirements
Start your journey
Plan for shortfalls
Invest by phases
Steps for Your Retirement Journey
Investing by Phases
Changing investment strategies of retirement assets
Shift by phases
Minimize fluctuation of assets for the next phase.
Seek high yields for future.
Reallocate assets at the start of each phase.
Very conservative assets supply income.
Initial Retirement
Seasoned Retirement
Matured Retirement
Survivorship Years
The start of each phase is your retirement checkpoint and a reallocation point.
Action Plan
1. Today
2. Take home
1. Retirement Road Map Brochure
1. Phone
2. Email
3. Mail
2. Answers to the six questions
1. Determine your phases
2. Lifestyle
3. Income Sources
4. Remaining Needs
5. Plan for Shortfalls
3. Appointment
4. Relax and enjoy the ride
Personalize Your Road Map