Minimize Your Retirement Risks

Today’s definition of retirement is much different than it was in previous generations.  Instead of working for 40+ years and then suddenly stopping, today’s retirees are slowing down and transitioning into 2nd careers, part-time jobs, and volunteer work as a way of exiting their long-term careers.  While this brings about many exciting opportunities, it is not without its own unique risks. In fact, there are some threats to our financial security that will have a completely different impact on us as we move into retirement:

• Inflation, even at very low rates, can significantly diminish your purchasing power.
• Taxes on traditional retirement accounts like IRAs and 401(k) plans may increase what you owe to the IRS.
• The chance of getting sick or hurt may increase the likelihood that you need assistance with day-to-day living.
• Volatility in the financial markets may cause your investments to decline in value, just as you need to withdraw them to pay for living expenses.
• The sale of your business may present new challenges about how to draw an income, and how to continue to live a fulfilling life.
• The possibility of living a long life may exacerbate all of the above.

It’s never too early to start thinking about retirement. Also, consider that some traditional retirement accounts may be great ways to accumulate money, but they may be bad ways to distribute money.

If you’re not sure how to create the proper balance to optimize your income and protect against these risks, then reach out to us. We can help provide you with clarity and confidence.