Many people do not view life insurance as an essential
and vital part of a retirement income strategies. They see life insurance
primarily as a way to protect families from the early loss of a breadwinner during
the working years. However, life insurance has the potential to be so much more
if properly utilized in a comprehensive retirement income plan. Life insurance
plays an important role in any financial plan. It helps loved ones recover from
financial risks and unexpected costs, increasing their chances of reaching
long-term goals and achieving dreams. Thinking about financial protection
and retirement can seem overwhelming, but as your life changes so does your
financial situation.
A retirement planner or advisor will be able
to offer advice on your Plano retirement income strategies and these are:
·
When to take Social Security benefits at the
best time
·
What pension distribution choices are right
and needed for you
·
If an annuity is a suitable investment for you
·
Which accounts to take withdrawals from each
year, and in what amounts, to minimize the retirement taxes you will pay
·
What amount of retirement income you could
expect to have
·
What withdrawal rate is appropriate when
taking money from a traditional portfolio
·
How much of your money should be in
guaranteed investments
·
What types of taxable income your investments
will generate
·
How you can rearrange investments to reduce
taxable income in retirement
·
Whether you should leave your money in your
company plan or roll it into an IRA account
·
Should you pay off your mortgage prior to or
during retirement
·
If reverse mortgage is a good option for you
·
If you need long-term care insurance
·
Whether you should keep your life insurance
policies or not
A simple, straightforward Plano retirement income strategies designed for do-it-yourselfers:
Maintain an emergency fund
Start by setting aside enough money to cover unexpected,
large emergencies, such as major repairs on your home or car, or out-of-pocket
medical expenses. The amount depends on your personal circumstances, but could
range from $10,000 to $20,000 or much higher. You could park these savings in a
money market fund or savings account with a bank or credit union.
Guarantee the basics
Next, develop sources of retirement income that won’t
drop if the stock market crashes and are guaranteed to last for the rest of your
life, no matter how long you and your spouse or partner, if you’re married or
in a committed relationship live. Cover most or all of your basic living
expenses with these sources of income. This way, if you or your significant
other live into your 90s or even 100s, or if the stock market crashes, you
won’t have to move in with your kids or friends.
Invest and draw down the rest of your savings
To cover your discretionary living expenses, such as
travel, gifts, hobbies and spoiling your grandchildren, invest the remainder of
your savings and use a systematic withdrawal plan (SWP) to calculate your
regular paycheck.
Good retirement planners will not make recommendations until they understand your expected
time horizon, your level of experience with investments, your goals, your
tolerance for investment risk, your need for guaranteed income, and a thorough
understanding of all your current resources such as assets, liabilities, and
current and future sources of income. However, if you’re game to tackle this on
your own.
