When retirement concerns shift from How should I accumulate funds for retirement? to Will my retirement funds last throughout my retirement?

When retirement concerns shift from

How should I accumulate funds for retirement?

to

Will my retirement funds last

throughout my retirement?

You need a…

Shifting Retirement Concerns

Are you planning for enough years?Will you run out of money?

How long will your retirement last?

Your Life Phases

Children grown,

Just Two of You

Children Off to

College, Focus on

Career

Home Purchase,

Children

Start Career, MarriageHigher Education,

Trade School

Planning for your life

Natural phases

Determined by activities

Planning for all retirement years

Retirement phases

Classify by activities

Retirement Lifestyle Phases

Pre-Retirement – the “Decision Phase”

Decisions that affect your income for life.

Take Social Security when first eligible?

Do you stop working, or just slow down?

Decisions that change your retirement lifestyle.


Decisions (Pension,

Soc. Sec., Changes)

Initial Retirement

Little change

Work replaced with hobbies, travel, activities, etc.

70% of current income for basic needs (adjusted for inflation)

20% for current income extra activities (adjusted for inflation)


Decisions (Pension,

Soc. Sec., Changes)

Travel, Hobbies,

Activities

Seasoned Retirement

Decreased activities

Less travel, hobbies, and other activities


10% for current income extra activities (adjusted for inflation)


Travel, Hobbies,

Activities

Less Activities, Less

Travel

Decisions (Pension,

Soc. Sec., Changes)

Matured Retirement

Much less activities

Health or other physical limitations


No additional income needed due to no additional activities



Travel

Reduced Activities, Health

Considerations

Travel, Hobbies,

Activities

Decisions (Pension,

Soc. Sec., Changes)

Survivorship Years

The lifestyle costs after losing your spouse are usually at least 60% of pre-retirement income.


Reduced Activities, Health

Considerations

Period Following a

Death


Travel

Travel, Hobbies,

Activities

Decisions (Pension,

Soc. Sec., Changes)

Inflation continues to rise each year

Retirement income needs to increase

Maintain spending power

Preserve your lifestyle

Retirement Must Consider Inflation

Steps for Your Retirement Journey

Determine the likely times of your retirement phases

Examine lifestyle requirements for each phase

Basic Needs

Additional Wants

Total Desired Incomeequals


plus

Determine source of retirement income

Social Security

Pensions

Qualified Retirement Plans

Annuities or Other Income


Determine the likely times of your retirement phases


Examine lifestyle requirements for each phase

Basic Needs

Additional Wants

Total Desired Incomeequals

plus

Determine source of retirement income

Social Security

Pensions

Qualified Retirement Plans

Annuities or Other Income


Desired Income Requirements

Known Sources of Income

Remaining Requirements

Remaining requirements may be provided by your available assets for retirement.

equals

less

Calculate remaining requirements

Start your journey

Plan for shortfalls

Invest by phases


Investing by Phases

Changing investment strategies of retirement assets

Shift by phases

Minimize fluctuation of assets for the next phase.

Seek high yields for future.

Reallocate assets at the start of each phase.

Very conservative assets supply income.

Initial Retirement

Seasoned Retirement

Matured Retirement

Survivorship Years

The start of each phase is your retirement checkpoint and a reallocation point.

Action Plan

1. Today

2. Take home

1. Retirement Road Map Brochure

1. Phone

2. Email

3. Mail

2. Answers to the six questions

1. Determine your phases

2. Lifestyle

3. Income Sources

4. Remaining Needs

5. Plan for Shortfalls

3. Appointment

4. Relax and enjoy the ride

Personalize Your Road Map

Documents

When retirement concerns shift from How should I accumulate funds for retirement? to Will my retirement funds last throughout my retirement?