Retirement planning involves an analysis of the various choices you make today to help provide for your financial future. To make appropriate choices, you need to estimate your future economic circumstances. You will also need to establish post-retirement goals. When you have determined how much of an income stream you will likely require in the future, you will be in a position to make wise choices regarding income, saving, investments, and retirement plans.

Retirement planning deals with three variables: Time, Rate of Return, and Money

Time

• How long will you work?

• How long will you save?
• How long will you spend (live)?
• When should I start Social Security and other pension benefits?

Rate of Return

• What risk level is appropriate?

• What return is reasonable to expect?

• How do I maximize my after-tax returns?
• What portfolio structure will deliver the right balance of risk/return?

Money

• Is my saving amount adequate?
• Is my nest egg sufficient to retire?
• What withdrawal (spending) range is appropriate?
• What is the most efficient way to draw from my various retirement accounts (i.e. IRAs, Trusts, Roth IRAs, etc.) to generate monthly cash flow?
• Can I afford to gift large amounts of money (family or charity)?
• Is leaving an estate a priority?

You need to tailor your retirement planning to your own unique circumstances. You will want to be familiar with life insurance, Social Security, and post-retirement health care insurance coverage, including Medicare and Long-Term Care insurance. Understanding these areas is critical to making good decisions in retirement.

Retirement planning includes two distinct phases-Accumulation and Distribution. The challenge in the Accumulation Phase is to build an adequate nest egg.   The challenge in the Distribution Phase is to structure distributions so you do not run out of money during your retirement.

Your financial advisor can provide much needed assistance and perspective in these areas.