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Nearing Retirement

Invest in a Relationship

investment-10-Landing-Page-Image.jpgAs you approach retirement your goals, the resources you'll need to achieve those goals comes into clearer focus. Now it's possible to develop a viable plan to help you make realistic projections about how much you'll have in retirement and what you'll be able to spend.

Here are a few key points to consider as you start to plan for your retirement:

  • Are You Ready to Retire?
  • Timing is Everything
  • How Much Annual Retirement Income Will You Need?
  • Do You Plan to Work in Retirement?
  • Retirement Income: The “Three-Legged Stool”
  • Asset Allocation in Retirement
  • Making Portfolio Withdrawals
  • Investment Considerations
  • Healthcare Considerations

The GTE Investment Group offers financial planning to assist those saving for retirement, approaching retirement, or already retired, as well as those just

Are You Ready to Retire?

The question is more complicated than it first appears because it demands consideration on two levels. First, there's the emotional component: Are you ready to enter a new phase of life? Do you have a plan for what you would like to accomplish or do in retirement? Have you thought through both the good and bad aspects of transitioning into retirement? Second, there's the financial component: Can you afford to retire? Will your finances support the retirement lifestyle that you want? Do you have a retirement income plan in place?

Timing is Everything

When it comes to transitioning into retirement, timing really is everything. The age at which you retire can have an enormous impact on your overall retirement income situation, so you'll want to make sure you've considered your decision from every angle. As you transition closer towards retirement, deciding when to retire may not be a single decision but rather a series of decisions and calculations.

How Much Annual Retirement Income Will You Need?

If you aren't able to answer this question, you're not ready to make a decision about retiring. And, if it's been more than a year since you've thought about it, it's time to revisit your calculations. We recommend that you plan on replacing between 60% and 80% of your pre-retirement annual income to maintain your lifestyle in retirement. While some of that will come from other sources like Social Security, most will come from your retirement savings.

Do You Plan to Work in Retirement?

An increasing number of employees nearing retirement plan to work for at least some period of time during their retirement years. The obvious advantage of working during retirement is that you'll be earning money and relying less on your retirement savings, leaving more to potentially grow for the future and helping your savings last longer.

Retirement Income: “The Three-Legged Stool”

Retirement income has traditionally been described as a "three-legged stool" made up of Social Security, traditional employer pension income, and individual savings and investments. With fewer and fewer individuals covered by traditional employer pensions, though, the analogy doesn't really hold up well today.

Asset Allocation

Your asset allocation strategy in retirement will probably be different than the one you used when saving for retirement. During your accumulation years, your asset allocation decisions may have been focused primarily on long-term growth but as you transition into retirement, your priorities for and demands on your portfolio are likely to be different. For example, when you were saving, as long as your overall portfolio was earning an acceptable average annual return, you may have been happy. However, now that you're planning to rely on your savings to produce a regular income, the consistency of year-to-year returns and your portfolio's volatility may assume much greater importance.

Making Portfolio Withdrawals

When planning for retirement income, you'll need to determine your portfolio withdrawal rate, decide which retirement accounts to tap first, and consider the impact of required minimum distributions.

Investment Considerations

Well thought out asset allocation in retirement is essential but consideration must also be given to the specific investments you choose. While it's impossible to discuss every option available, it's worth mentioning investment choices that might have a place in the income-producing portion of your overall investment strategy.

Health Care Considerations

At any age, health care is a priority. When you retire, however, you will probably focus more on health care than ever before. Staying healthy is your goal and this can mean more visits to the doctor for preventive tests and routine checkups. There's also a chance that your health will decline as you grow older, increasing your need for costly prescription drugs or medical treatments. That's why having health insurance is extremely important.

The Transition Into Retirement: Learn More

Securities and insurance products are offered through Cetera Investment Services LLC (doing insurance business in CA as CFGIS Insurance Agency), member FINRA/SIPC. Advisory services are offered through Cetera Investment Advisers LLC. Neither firm is affiliated with the financial institution where investment services are offered. Investments are: *Not FDIC/NCUSIF insured *May lose value *Not financial institution guaranteed *Not a deposit *Not insured by any federal government agency. Advisory services may only be offered by Investment Adviser Representatives. Click to view the Cetera Investment Services Privacy Policy and other Important Information. Investment Executives are registered to conduct securities business and licensed to conduct insurance business in limited states. Response to, or contact with, residents of other states will only be made upon compliance with applicable licensing and registration requirements. The information on this website is for U.S. residents only and does not constitute an offer to purchase brokerage services to persons outside of the United States.
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