Course of Actions for Your Retirement Income

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.