Retirement planning is a very advanced process, but retirees are encouraged not to try this all by themselves. Other than risking surpassing your assets, you need to tackle the concerns of social security, healthcare, interest rate volatility, stock market volatility, inflation, taxes and more. Here are some things that you need to expect from your own retirement plan.
Potential for money growth
You would like to grow your money. But you would like to grow your assets not just to be rich but to make sure that you can keep up with long-term care, rising healthcare costs, technology changes, planned obsolescence, taxes, inflation etc. No retiree likes to spend his own principal amount, but live with the income that is produced from their own principal. Thus, you would like to ensure that your income keeps up with inflation, and choose a well-balanced and well-diversified portfolio.
Ensuring income that lasts
Life expectancies are higher today, given that there are so many baby boomers today and modern medicine has improved so much in the present times. The average life expectancy for average make is around 85 years. According to a number of studies, by 2030, over two-thirds of individuals in America will be over 60 years of age. Thus, your retirement plan needs to have an approach that takes a minimum of 3 decades into consideration.
Ensuring asset growth
If you want to grow your income, you need to grow your own assets at a pace that surpasses your own withdrawal rate. Investment of a part of your funds in the stocks plays a big role in your overall retirement plan. In case you want to invest in CDs and bonds, and you take taxes and inflation into account, the use of such income-producing investments might not give you the growth that you require long-term to ensure income growth. Thus, you need professional money management for your retirement financial planning strategy.
Complete transfer of assets to beneficiaries
You can leave a legacy. Each retirement plan should at least have a proper plan in place to make sure that any money that you do not spend will pass effectively to your loved ones, family members, kids or even the charitable organizations of your choice.
It is a good idea that you hire professionals and leave the concerns of finances, so that you do not need to worry about where your money is going after retirement.