When it’s time to say good-bye to your job, what’s the plan for turning your savings into monthly income that will last the rest of your life? How will you protect against MAJOR stock market swings which historically have occurred every 5-6 years? How will you hedge against inflation? How will you determine a safe rate of withdrawal to ensure you don’t run out of money? Retirement planning is the big picture strategy to manage these risks. We utilize a variety of strategies including asset segmenting (also known as bucketing), safe withdrawal rate research and Social Security maximization.
When a plan is established, we like to illustrate the first 5-10 years to help clients visualize the various sources of cash flow and the respective timing of each.