Jaime Hopkins Esq., LLM, CFP®, ChFC®, CLU®, RICP®
Remember, retirement planning is not about saving towards a magical number. I often describe retirement income planning as trying to hit a moving target in the wind. The target are your goals, because every retirement should be personalized, and every retirement income plan should start with trying to achieve what you want. Whether that is spending time with kids, traveling, giving back to your church, community center, or a local non-profit, it is about accomplishing your unique retirement goals.
Next, the target is moving because no one knows how long you will be in retirement. Roughly 51 percent of people retire earlier than planned and half of those retired five or more years early.* Additionally, you could spend five years in retirement or live past 100 and spend roughly 40 years retired. Longevity is not a risk, it is a good thing to live a long and happy life, but it does increase the amount of time we need to have sustainable retirement income.
Lastly, there is wind, this is the change that will occur along the way in retirement. The government may change tax laws, health care laws, and other laws that will impact our lives. Additionally, markets will go up and down, interest rates will fluctuate, and inflation will occur. All of this may cause our plans to change. As such, every retirement income plan needs to be built with the flexibility to withstand changes along the way.
I’ll be discussing why you need to “rewire” the way you think about retirement at Carson Wealth’s luncheon on Nov. 13 at Hacienda Del Sol Guest Ranch Resort. Learn to manage risks and market downturns, deal with longevity and fear of running out of money, options for Social Security and Medicare strategies, and work towards your retirement goals.
Jaime Hopkins is director of Retirement Research with Carson Group, a finance professor of practice, Creighton University Heider College of Business, and nationally recognized author and speaker on retirement finance.
*https://www.plansponsor.com/planning-retire-later-doesnt-reflect-reality/
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