Retirement Planning 101
It’s the most wonderful
time of the year – Back to school. Just ask most parents. But as the summer
comes to an end and kids are resuming their studies maybe its time for the
parents to follow their lead and learn more about retirement planning.
Unfortunately, the
thought of this can intimidate people, so the easiest solution is to put it
off. That can be a big mistake, as there can be real life consequences in doing
so. Too often I hear people say that they waited too late to develop a
retirement plan, or that the process of retirement planning is too complicated.
I am sure that is not the advice you would give your kids when they are faced
with a tough subject in school. It is never too late to start planning and
educating yourself in order to take control of your retirement.
According to Wikipedia,
the definition of Retirement planning is- in a financial context, refers to the
allocation of finances for retirement. The goal of retirement planning is to
create an income stream during retirement that replaces your income, so
that the need to be gainfully employed is optional rather than a necessity.
So what should the money
in your retirement plan look like? Consider these three crucial areas:
1) Investments:
Your
money needs to continue to grow in order to fund what could be a 30-year
retirement. Investments come in all shapes and sizes; stocks, bonds, mutual
funds, ETFs, real estate and other alternative investments such as gold or
other commodities. The key when structuring your investments for retirement is
to ensure your investing based on your risk tolerance. Some of these investment
vehicles come with more risk than others. The older you get, the less your
money should be exposed to risk.
2) Savings:
You
will always want to keep a little cash on hand and easily accessible throughout
your retirement years. This could be through a savings or money market account
or CDs from your bank or cash value life insurance. Liquid savings can
supplement your income in the earlier years in retirement, allowing your other
investments to continue to grow. And in the event an unexpected circumstance
arises when retired, it’s always better to pay with cash from your savings
rather than with credit, or worse, be forced to pull from other investments,
which can sometimes have fees or penalties for early withdraws.
3) Insurance:
Insurance
can provide two main benefits in retirement. Insurance products such as fixed
annuities can be used to turn your lump sum savings into a reliable income
stream in retirement (with many products guaranteeing an income stream for
life). The other important function of insurance is it works to protect the
money you do have saved from the high-costs associated with injury, sickness or
death. Long-term care insurance can pay medical bills in retirement, protecting
your savings from the cost of extended health care. And life insurance, which
is passed to heirs tax-free, if structured right can replace all the money you
used for the annuity to your living spouse or children as well as ensure your
family and loved ones aren’t left with having to pay any of your final expenses
out of pocket.
When reviewing your
retirement plan, be sure you have your retirement dollars designed to grow,
protect and secure your desired retirement lifestyle. In our brand-new free report, our retirement experts give their insight on a simple strategy to take advantage of that can help ensure a more comfortable retirement for you and your family.
Vasilios "Voss" Speros
602-531-5141
Spence Cassidy and Associates
vsperos@scaaz.com
#LifeInsurancePhoenix #RetirementStrategiesPhoenix
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#LifeInsurancePhoenix #RetirementStrategiesPhoenix
http://www.scaaz.com/
http://1lifeandretirementstrategies.blogspot.com/
https://www.linkedin.com/pub/vasilios-%22voss%22-speros/60/722/67b
85254
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