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News You Can Use Steps to Develop a |
| Situation | |
| Employees who recently retired, or who are just about to, often miss significant opportunities to manage their money effectively and retire successfully—with sound financial strategies. They often don’t know or understand their options, so they cannot make informed decisions. At worst, they make bad decisions that lead to anxiousness, frustration and bewilderment about their finances. | |
| Problem | |
| Lack of effective planning. This usually results from not knowing the steps to make a good retirement plan, or not understanding enough at each step to make informed choices. Lack of effective planning. This usually results from not knowing the steps to make a good retirement plan, or not understanding enough at each step to make informed choices. Lack of effective planning. This usually results from not knowing the steps to make a good retirement plan, or not understanding enough at each step to make informed choices. Lack of effective planning. This usually results from not knowing the steps to make a good retirement plan, or not understanding enough at each step to make informed choices. Lack of effective planning. This usually results from not knowing the steps to make a good retirement plan, or not understanding enough at each step to make informed choices. | |
| Solution | |
| Planning for a financially successful retirement can be complex, but it does not have to be complicated. When you know the steps and what to consider, making effective decisions becomes easier. In brief, a good retirement plan should consider: | |
Deciding Individual Goals and Lifestyle Preferences
What you plan to do in retirement—quit working, work at something else, travel?
How well you plan to live, and where
What it will cost to live the way you want
How you plan to adjust to this major life change—retirement
Sources of Retirement Income and Benefits
- Pension benefits—employer sponsored, 401(k)/403(b) plans, IRAs, etc.
- Investments and savings—where you are now and what more you can do
- Selling assets—moving to a smaller home
- Government benefits—Medicare, Social Security
- The best timing strategy for tapping each source
Calculating What You Have Compared to What You Will Need
- Asset types and each one’s real growth potential
- Taxation and inflation against each asset
Accepting and Managing Financial Realities
- The impact of cash flow on capital
- The importance of balance and diversification
- The relative security of each investment
- The cost of procrastinating
How to Manage and Keep the Plan Current and Effective
Retirement is the reward people work hard to attain. Financial independence makes successful retirement successful, allowing you to choose how you will live. Luck and happenstance will not make it so. Only effective planning can assure achieving the comfort and security of a richly rewarding retirement.
© 1998. All rights reserved. Brought to you by: Richard R. McMahon, CFP, ChFC, CFS and Judith E. Flynn, CFS - McMahon & Flynn Retirement Planning Associates, LLC , McMahon and Flynn Retirement Planning Associates, LLC provides insurance and financial services as a representative of the Allmerica Financial companies, 95 Glastonbury Boulevard, Glastonbury, CT 06033 Tel: 800-255-5939 or 860-659-4499, ext. 219. Securities offered through Allmerica Investments, Inc., a registered broker/dealer . 98-1004
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