We all want to find ourselves enjoying a comfortable lifestyle when the time comes to retire. The tough part is anticipating all of the steps required to get there— especially when each of those steps requires us to make decisions that may not be as simple and straightforward as we'd like.
At PSFG we help you identify potential sources of future or retirement income. First list the guaranteed and non-guaranteed income sources you will use to fund your retirement. Keep in mind, it's hard to predict the level of Social Security that will be available by the time you choose to retire. And, pension plans are depleting. So more of today's retirees will need to rely on personal savings to help supplement.
Fixed costs during retirement
Ideally, you want to use the most predictable income sources to meet your essential expenses. Once you identify your essential expenses, you can fund your discretionary spending (such as that used for travel, hobbies and education). Knowing that your essential expenses are covered may better position you to enjoy your retirement more and also ride out any periods of market volatility you may incur along the way.
Identify the gap that needs to be filled
It's important to now convert your financial assets into sources of lifetime income. If you identified a gap between the income sources for retirement and the expenses you'll incur, then you need a source of income for retirement. Figuring out how to get to your financial goal involves a complex series of trade-offs. There is no one-size-fits-all strategy.
Fill the Gap
What's Next? You've faced the reality of market uncertainty and realized that when you start investing and when you retire are vital factors in determining how you retire. While you cannot change the uncertainty of investing and market performance, you can make informed financial and investment decisions resulting in the confidence of pursuing a secure financial future.