Retirement Planning

Retirement planning is the process of preparing for life after you stop working. It involves setting financial goals, saving and investing money, and managing your expenses and income in retirement. Retirement planning can help you achieve your desired lifestyle and avoid running out of money in your later years.

Plan For Your Goals Service Areas

  • Analysis of how much to contribute to retirement accounts each year
  • Analysis of Roth vs traditional 401k plan account
  • Considering backdoor and “mega” backdoor Roth IRAs
  • Coordinating income with tax-sensitive items such as Medicare premiums
  • Defined benefit pension claiming analysis
  • Determine when clients can retire
  • Helping clients avoid financial fraud
  • Planning for housing transition such as to a continuing care retirement community (CCRC)
  • Retirement cash flow analysis
  • Retirement lifestyle goal planning and guidance
  • Retirement plan distribution option analysis
  • Review annual social security statements
  • Required minimum distribution (RMD) planning and execution
  • Safe withdrawal rate analysis and retirement income strategies
  • Social security claiming analysis

What Are Some Retirement Planning Steps?

Here are some key retirement planning steps:

  • Knowing when to start saving and when to retire.
  • Calculating how much money you’ll need to cover your expenses and goals in retirement.
  • Setting priorities and making trade-offs between spending now and saving for later.
  • Choosing the right retirement accounts and investments that suit your risk tolerance and time horizon.
  • Choosing how to withdraw your money in retirement and doing estate planning.

Retirement planning can be challenging, but it can also be rewarding if you start early and follow a plan that works for you.

Why Do I Need to Plan for My Retirement?

You need to plan for your retirement because it is a major life transition that affects your income, expenses, lifestyle, health, and happiness. Retirement planning can help you:

  • Achieve your financial goals and maintain your desired standard of living in retirement.
  • Avoid running out of money or relying on others for financial support in your later years.
  • Prepare for unexpected events and risks that could affect your retirement security, such as inflation, market fluctuations, health issues, long-term care needs, and longevity.
  • Take advantage of tax benefits and incentives that can boost your retirement savings and income.
  • Make informed decisions about when to retire, how to withdraw your money, and how to optimize your Social Security and pension benefits.
  • Enjoy your retirement with peace of mind and confidence that you have a plan in place.

Retirement planning is not a one-time event, but an ongoing process that requires regular review and adjustment. By starting early and following a plan that suits your situation, you can increase your chances of having a successful and fulfilling retirement.

How Will Plan For Your Goals Help Me With Retirement Planning?

David can help you with retirement planning in many ways:

  • Providing you with a comprehensive and personalized retirement plan that takes into account your goals, income, expenses, assets, liabilities, risk tolerance, time horizon, and other factors.
  • Helping you choose the best retirement accounts and investments for your situation and optimize your tax efficiency and asset allocation.
  • Helping you monitor and adjust your plan as your circumstances change and provide ongoing guidance and support.
  • Helping you avoid emotional or impulsive decisions that could derail your retirement plan and keep you focused on your long-term objectives.
  • Helping you plan for other aspects of your retirement, such as Social Security, Medicare, estate planning, long-term care, and legacy opportunities.
  • Providing you with peace of mind and confidence that you are on track to achieve your retirement goals.

How Do I Calculate How Much Money I’ll Need in Retirement?

There are different methods to calculate how much money you’ll need in retirement, but one common approach is to use a retirement ratio or income replacement ratio. This is the percentage of your pre-retirement income that you’ll need to maintain your desired standard of living in retirement.

For example, if you earn $100,000 a year before retirement and you want to have $80,000 a year after retirement, your retirement ratio is 80%. The lower your retirement ratio, the less money you’ll need to save.

To calculate your retirement ratio, you’ll need to estimate your retirement income and your pre-retirement income. Your retirement income is the amount of money you’ll receive from various sources in retirement, such as Social Security, pensions, annuities, investments, and other income. Your pre-retirement income is the amount of money you earn from your work before retirement.

To estimate your retirement income, you can use online tools such as the Social Security Retirement Estimator or the Retirement Income Calculator. To estimate your pre-retirement income, you can use your current salary or wage and adjust it for inflation and expected raises.

Once you have these estimates, you can divide your retirement income by your pre-retirement income and multiply by 100 to get your retirement ratio. For example, if your retirement income is $60,000 and your pre-retirement income is $100,000, your retirement ratio is 60%.

The retirement ratio can help you set a target for how much money you’ll need to save for retirement. However, it’s not a precise measure and it may change over time depending on your expenses, lifestyle, health, and other factors. Therefore, it’s important to review and update your retirement plan regularly and adjust your savings and investments accordingly.

What is Retirement Income Gap?

Your retirement income gap (RIG) is the difference between the amount of money you need for fixed monthly living expenses after retirement and a guaranteed fixed income source. To calculate your RIG, you need to figure out your core expenses (food, clothing, shelter, healthcare, and taxes) and your guaranteed income sources (such as Social Security). The gap is the amount of money you need to cover your expenses that is not provided by your guaranteed income sources.

Some factors that can create or widen your retirement income gap are inflation, investment risk, taxes, health-related expenses, and unexpected expenses. You may need to consider some strategies to help close your income gap, such as working part time, delaying Social Security, using a bucket strategy, or buying an annuity.

Should I Be Worried About the Retirement Income Gap?

Whether you should be worried about the retirement income gap depends on your personal situation and goals. Some factors that may affect your level of worry are:

  • How much you have saved for retirement and how you plan to invest it.
  • How much guaranteed income you can expect from Social Security and other sources.
  • How much your core and discretionary expenses are likely to be in retirement.
  • How long you expect to live and what kind of health care costs you may face.
  • How much you want to leave as a legacy or gift to your heirs or causes.

If you have a large retirement income gap, you may need to make some adjustments to your retirement plan, such as working longer, spending less, delaying Social Security, or buying an annuity. Plan For Your Goals can help you create a personalized retirement income strategy that suits your needs and preferences.

Simple Path to Improve Your Financial Condition

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Step 1:

Select a Consultation Service

My services are designed to be flexible and meet your needs. Whether you're looking for a basic evaluation, help with a key area of your finances, or comprehensive financial planning, you'll find it here.

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Step 2:

Understand Your Real Financial Condition

Working together we will determine your financial needs. We’ll assess what is effective or problematic, and what is hindering your progress. With a clear understanding of your financial condition, you can make smarter choices.

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Step 3:

Plan a Better Future

Getting the knowledge and guidance you need from a financial professional is an investment in your security and hope for the future. And it’s not just for you, but for the people who depend on you.

David Roberts - Financial Planner and Advisor of Plan For Your Goals

David Roberts, Owner: Plan For Your Goals

You Deserve a Better Future

Affordable financial advice with flexible options that fit into your tight schedule can be difficult to find. That's why so many people struggle to make smart money decisions. At Plan For Your Goals my clients get the financial planning, coaching, and resources they need to make better decisions and plan a better future.