I have been seeing more and more people come into my office in the last couple of years almost scared about even the thought of retirement. Why? Because all of the choices retirees now have to make. It use to be much more simpler.. the only choice they had to make was “when” and in the past that retirement date may have been even mandatory. Today, it is very common to be talking to folks that are 5 years, sometimes even 10 years, away from retirement because they know all the different choices they have to consider. Such as:
- When will I retire? Can I afford to?
- How much income will I need?
- Where am I going to invest my money?
- How long will my money last?
- What happens to my retirement funds if the market declines?
- What happens if I end up needing long-term care?
You see, all these questions must be answered plus so many others. People are living longer and the longer one lives the more likely something negative can happen to either your health or your wealth., if not both. In my belief, folks just don’t know where to go and they do not know who to trust. Working with a knowledgeable retirement professional, that retires every day, and who has been through this before will help you find the answers to these questions that are sometimes so difficult to find.
The most important part of a retirement plan is actually the plan itself. If you do not have a plan, you have no idea where you’re going or where you will end up. It is not about the product, its about the plan. When the plan is figured out, the product is the easy part.
The most important part of your plan needs to be income. Once you figure out the income plan, the other investments should be built around that income base.