Retirement Planning

Utilizing safe retirement strategies, we at Keith Collins, Inc. work to ensure our clients have access to their hard-earned money when they need it. Formulating plans that make certain you never outlive your retirement income, we pride ourselves on giving our clients the peace of mind to enjoy their retirement and leave something behind for their families.

Why Retirement Planning Is Important

Because of factors like inflation, taxes, market volatility, and longer life expectancies, there is a real risk of individuals outliving their income. When you are retired—long past earning income from work—you will not have the time or resources to properly make back funds outlived or lost to market forces. Consider also other expensive situations that could make your finances vulnerable during retirement, like medical expenses, and you can see why planning early, planning often, and planning smart, is your best way to prepare.

The main goal with retirement planning is to reduce risk while growing a source of sustainable income. There are numerous strategies and solutions that can achieve this goal. What will be appropriate for you will, naturally, depend on your specific situation.

Phases of Retirement Planning

Generally, retirement income planning has three phases:

Accumulation

Preservation

Distribution

In the first phase, you should examine all the different ways to accumulate funds to meet your specific retirement needs. There are solutions which allow tax-deferred growth, meaning your funds compound more before incurring a tax-liability.

The accumulation process typically starts with an assessment of current assets and sources of income, then evaluating your readiness-to-retire based on your ideal retirement lifestyle and age. Depending on how far away from retirement you are, you may also want to consider taking advantage of employer-sponsored programs like 401(k)s or IRAs—especially if your employer matches contributions.  You may also want to examine cash accumulation vehicles like investments, annuities, and certain types of life insurance.

In the preservation phase—which typically begins a few years before retirement—you should reassess your risk tolerance, financial needs, and retirement plan performance. You’ll also need to be understand of how your resources will be treated by taxes upon distribution. It may be to your benefit to delay certain accounts or even delay retirement itself.

In the distribution phase, you begin to draw on your retirement resources. You may also want to consider how your assets are structured, with regards to tax purposes and benefit amounts.

No matter what phase of retirement planning you are in, regular review is key to achieving asustainable and independent retirement. Your needs may change or new opportunities may develop.

Ready to begin your tailored retirement planning process? Need to review your current financial plan? About to retire or currently in retirement? Contact us now for dedicated financial care.