Benefit Strategies
Six Things You Need To Know Before You Retire
As the great mass of baby boomers approach retirement, a new book titled Wealth Management In The New Economy by Mindel and Sleight, share the six most important things you need to know about retirement planning.
- Plan on living to 100 and expect the cost of living to double at least once during your retirement years.
- Know how much money you will need each month after taxes.
- Assume you will withdraw no more than 4% of your portfolio value if you want your money to last as long as you do.
- You will have to invest in equities and you will have to manage the risk of that equity exposure.
- Certain kinds of protection are essential to your well-being and the well-being of your finances (e.g. long-term care insurance and annuities).
- Your planning will be a whole lot more accurate and more comprehensive if you work with a tax and financial advisor.
For most people, deciding what they are going to do in retirement involves a great deal of hard thinking and decision making, and most people most of the time, are lost in their daily lives. It wasn’t long ago that the most important purchase a person made in a lifetime was a house, but that has changed. Today, planning for retirement is your most important financial goal.
Our next Retirement Wire will take you through the mathematics and portfolio construction to determine how much money you will need to generate $1,000 per month of lifetime income after taxes and inflation. In the meantime, if you have questions about your retirement planning, please feel free to call Donald J. Potter, Jr., President of Benefit Strategies, Inc. at (540) 989-2020. Mr. Potter also conducts seminars for companies whose employees are within ten years of retirement.