Planning For Retirement: Your Biggest Life Change Begins Now
What is your vision of retirement? Will you become a world traveler, exploring the jungles of Borneo? Perhaps you’ll finally launch that cabinet-making business you’ve always dreamed of. Or maybe your dream is to while away the hours on your porch with a tall glass of lemonade, watching the grandchildren chase butterflies through the grass.
Retirement Strategies: For our grandparents and parents, a retirement fund traditionally meant Social Security + pension + personal savings. Today, however, few employers offer traditional pension plans and the future of Social Security is…uncertain. People now are choosing to invest in IRAs or 401(k)s, but even with generous employer matching, most people need more than just a 401(k) to retire comfortably. Maybe that’s why a large percentage of people simply plan to continue working…forever.
“Graduated college. Getting my first paycheck. Outstanding! Some older dude in the office starts talking to me about putting money away. I’m thinking about my plans for the weekend. He persists. I decide to listen to the older dude and engage My FinPlan and its advisors. My customized retirement report arrives less than 24 hours later, in plain English, and with insights from their advisors. I learn that by waiting just five years to start putting an affordable amount of money away, I will have $400,000 less down the road. I pull my head out of the sand, buy one less drink on each Friday night, and start saving what I can. My friends still like me and, I don’t know why, but I start having dreams of living in Hawaii.”
The changing face of retirement: For decades, retirement in this country has been conceived as a moment in time when, presented with the golden watch, a person immediately stops working, goes home and begins pursuing their retirement plans. Nowadays, the vast majority of people have other ideas. Many people plan to continue working in their field until they can no longer work at all. Others dream of a slow transition to retirement with fewer hours or a less demanding job. As the median life expectancy increases, the potential years spent “in retirement” have jumped from 5-10 years in to over 20 years today. As people remain active well into their retirement years, the pursuit of world travel, hobbies and other activities will require resources for more than simply covering basic living expenses.
“I did what my parents taught me: I listened to the company rep at benefits enrollment time, listened to my friends (they didn’t know any more than I did), put money into my 401(k) and watched it go up and down. Now I’m just two years away from leaving my job for my “next life” and I have no idea what that looks like. Frankly, I’m scared.
Do I have enough to last the rest of my life? Will I have to cut back on the amount of sweet tea I drink or can I buy that coffee shop at the beach I’ve been eye-balling for fifteen years?”
Social Security is changing, like it or not—we just don’t know exactly how. Benefits may be reduced, taxes could be increased, retirement ages could change, or the whole system could be privatized.
According to the Social Security Administration, “If trust fund assets are exhausted without reform, benefits will necessarily be lowered [by about 25%],” beginning in 2037. There are other options, but there’s no guarantee that appropriate action will be taken in time.
Retirement Planning Report
The My FinPlan Retirement Planning module considers a complex array of factors based on your goals and circumstances:
- Your age
- Projected retirement age
- Current income and potential raises
- Expected life span
- Retirement income goals (including: living expenses, activities, and travel)
- Projected tax rates
- Projected inflation rate
- Legacies (do you want to leave an inheritance or spend it all?)
- Current investment growth
- Potential income from social security, pensions, savings plans and other assets
Your Retirement Savings Plan Includes
- A projection of your income needs over your expected lifetime.
- A detailed, year-by-year schedule of retirement distributions so you always know exactly where you and your budget stand.
- Recommended adjustments that will allow you to achieve all of your retirement goals.
- A complimentary “sanity check” report: Are your projections and estimates in alignment with the real world?
- 20 minutes FREE with a professional planner to go over your plan to ensure that you have a good understanding of your plan and to gain clarification to any questions that you may have.