Financial Focus Q: A:

RETIREMENT PLANNING

What’s the best way to plan for retirement? Planning for retirement is complicated. Most investors rely solely on stock investing to provide a comfortable retirement. And, most people aren’t saving enough. First, decide when you want to retire? Nowadays, people are living and working longer. The average retirement age is sixty-seven for people born after 1959. Determine how much per month you’ll need to last into your 90’s. If you die sooner, you’ll have lived a comfortable retirement. If you don’t plan for a long life, you could run out of money too soon. There are 1.9 million people in the U.S. today over 90. There will be 4 million in the next decade. You could be one of them. Your retirement monthly expenses typically include food, clothing, possible rent or mortgage, taxes, travel, health care costs, auto expenses, insurances, gifts, cable, internet and cell phone fees. Identify the sources of retirement income. Where will it come from: Social Security, pension, rental income, savings, etc? You should consider purchasing the right annuity now. It will grow at a guaranteed return (example 10% annually) every year until you convert it to income. It will then pay a high, monthly income for life. You will not lose money in the stock market and heirs will receive all unused money. Not all annuities are good. If you own one or are considering one, contact us for a free analysis. There are other points to consider: When to take Social Security and which option will maximize yours, what to do and not do with your 401(k) or 403(b), minimizing risk and losses as you get closer to retirement, protecting you and your nest egg from nursing homes, creating an income plan now in case you lose a spouse/income or lose your job unexpectedly due to downsizing or for health reasons. You don’t have to do it alone. Call us for guidance at (440)942-1936. You’ll receive a fresh, second opinion and will learn what you should do to get on track and how to do better with what you have.