The 2 keys in preparing for the retirement is determining if you have enough money to retire & when to start taking Social Security. These two "fears" appear to be the ones that create the most anxiety. Yet if a financial plan is in place these 2 items are completely addressed and plan for. Most financial plans create scenarios for when taking SS and its impact on the amount received. Depending on when you take it amounts differ, with the lower amounts associated with taking it earlier. The plan itself is suppose to map out your anticipated living expenses and income till death so that question if the plan is following is addressed as well. Other things that create uncertainty is your estate planning which determines who inherits your estate that is usually addressed outside the planning with an attorney. The most important aspect (that most don't know) in preparing for your retirement is assuring your portfolio is align with your overall financial planning needs. Often 401K plans are designed around age, selecting assets based on that alone. That is disconnected with the outlook for the economy/ financial markets which means "age" is driving asset allocations vs fundamentals/valuations. Most important it may not match the need for income according to your anticipated living expenses. Thus, matching your asset allocations to your needs according to your financial plan and anticipated market returns is important.
Retirement, much like marriage, can be a period of anxiety or enjoyment depending on whether you properly plan for it.
For more insights see our website and disclosures found there at BCA. Contact us at Brecken Capital Advisors for more information.
