Planning for retirement is no simple task.
You are thinking about retirement.
Social Security will not be sufficient alone.
The average check is $1,360 per month.
According to a recent Kiplinger article titled “Plot a Smoother Retirement Journey with a Written Income Plan,” you need to be active and intentional in your financial planning.
First, do you have a pension?
A pension can be a start to supplementing Social Security.
Unfortunately, it is not likely that you have one.
Few employers provide pensions these days.
What does this mean?
You need to be intentional with your investment portfolio.
Putting your plan in writing can be particularly helpful.
You need to outline how your Social Security, pensions, savings, real estate, IRAs, and 401(k)s work together to provide you what you need.
What should you consider?
When you plan to retire,
Your after-tax income goal,
Your current and future tax situation,
Your retirement portfolio size, and
Your legacy goals.
Once you have these factors set, you can work on diversification, insurance for principal and income protection, leveraging your investments for growth and liquidity.
You should also wait to take Social Security until you turn age 70.
This will maximize your benefit amount.
What other steps can you take?
Start by taking inventory of your expenses.
Next, list any income sources.
Compare your expenses and your income.
Allocate the assets to cover your expenses.
Build in protection for unknown expenses.
Update your plan as necessary.
For additional help in setting and achieving your goals, work with a financial advisor and an experienced estate planning attorney.
Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.
For more information about estate planning in Overland Park, KS (and throughout the rest of Kansas and Missouri), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.
Reference: Kiplinger (October 2017) “Plot a Smoother Retirement Journey with a Written Income Plan”