Four Tips to Help Avoid Surprises in Retirement Planning

When planning for retirement, you will face many decisions. At this crucial time, working with an experienced planner and wealth manager is essential.

At Financial Consulting Group, we use a disciplined approach to retirement planning. We will help you visualize and understand how your income sources and retirement assets can fund your retirement needs. As we sit down to discuss your future, we will take these key considerations into account:

  • What are your basic needs during retirement?
  • What things do you want to enjoy?
  • What income sources are available to pay for your expenses?
  • What retirement assets do you have, or might have down the road, to fund yourretirement?

Once you retire, managing your money is more important than ever. During your retirement years, your personal goals as well as the economic environment are likely to shift. These shifts may result in reassessing your needs and goals. An experienced, trusted financial advisor can help you plan for the unexpected.

Here are 4 tips to help you avoid surprises in your retirement planning:

1. Think Long Term.

Almost two-thirds of retirees receive more than half of their retirement income from Social Security. Thus, which investments you select are not your most important decision in retirement planning. To gauge the effect on your savings by starting Social Security earlier rather than later, take a longer view. Consider what you think you will reasonably earn on your retirement assets and your life expectancy. While delaying filing for your Social Security benefits may result in a loss of investment earnings potential, in the long run you may reduce the withdrawals from your nest egg as soon as you start receiving larger Social Security checks.

2. Delay Your Social Security Benefits. 

Many people believe that retirement begins when they start collecting Social Security. However, deferring benefits past the age of 62 has its advantages. For each year you defer benefits, you will receive an increase up to 8%. Deferring Social Security may be one of the most inexpensive ways to guarantee more lifetime income.

3. Consider Paying Taxes Now. 

The majority of people attempt to pay as a little tax as possible by avoiding or deferring taxes. Most do this with the hopes of maximizing tax-deferred savings. In some instances, it is more beneficial to take withdrawals sooner.

4. Customize Your Retirement Spend Down 

Generally, retirees need to spend dividends, gains, and interest from the sales of assets to meet their retirement income. The 4 percent rule advises that you withdraw and spend an amount equal to 4 percent of your retirement account balance annually. There is no reason to guess about what to spend this year or in the future with today’s financial tools. For some, the 4 percent withdrawal may work and others, may need to make an adjustment for. After reviewing your asset portfolio along with your long-term goals, we will customize your spend down designed to fit your specific needs.

At Financial Consulting Group, we are here to direct you through your retirement planning journey. Instead of offering you a generic investment program, our independent professional advisors create a personalized financial strategy based on your unique situation, your attitudes, preferences and goals. As we plan your financial future, our independent advisors consider anticipated changes and create a plan that will potentially work for you at every stage of your life.