• Developing Retirement Income

  • Planning for retirement is no different from any of the other life-stage planning you have already accomplished. Devise your goals and work toward them, making adjustments along the way. Here are some simple steps to developing a retirement income plan.

    Establish your goals

    Sit down with a financial adviser and discuss your long-term goals. Choose a target year for retirement, and think about your estimated monthly budget once you retire. Take into consideration the lifestyle you plan to maintain. Set reasonable goals to accomplish your retirement dream.

    Assess your situation

    Determine your current situation, as compared with your intended goal. How much money have you already saved toward retirement? How much Social Security income do you anticipate receiving upon retirement?

    Analyze your finances

    Analyze your current financial situation. How much of your discretionary income do you allocate toward retirement savings each month? What assets do you own, and how do they play into your retirement plan? Are you mortgage-free?

    Consider your options

    If your retirement goals are too pricey, consider your options for revision. Do you need to cut current spending and increase your retirement savings? Do you need to plan to work a little longer than you originally anticipated?

    Adjust your savings plan

    Now you need to adjust your savings plan to meet your revised retirement income plan. Choosing some higher-risk investments in your portfolio is a good way to boost your monthly contributions. Talk to your financial adviser to devise a plan that is right for you.

    Choose a disbursement plan

    Once your retirement savings goal is clearly in sight, discuss with your investment counselor some options for retirement income. Develop a plan for annual withdrawals from your nest egg, taking into account the tax burden associated with your income. Discuss any penalties for an unexpected early withdrawal.

    Remember that your plan is a work in progress. Make adjustments along the way as you navigate your path toward retirement. Work closely with your financial adviser, making sure that your money is growing at an acceptable rate. With diligence and careful planning, you make sure your golden years are truly golden!