Hello and thank you for stopping by today. I do appreciate it. Today we’re going to talk about retirement.
My name is Tina Anders. I am the Fee Only Certified Financial planner for my firm located here in Petaluma, California, Anders wealth management. I serve primarily the Sonoma County and Marin County areas of California.
And I’m here again to talk to you about retirement. So, what does your ideal retirement lifestyle look like? Dream big, visualize! What would you like it to look like? Would you like to travel? Would you like to spend time with family and friends? Would you like to do volunteer or community service? Would you like to move and potentially to a different state even? Would you like to start business for which you might have a passion? So, many different ways to spend retirement.
Oftentimes, the earlier years of retirement tend to be more expensive than the later years. I say that with the caveat that long term care could become an issue, in which case Long Term Care Insurance is advisable almost always.
Now, how will you fund retirement? Well, financial resources that may be available to you to fund your retirement could include; taxable investments such as brokerage accounts, savings accounts, retirement accounts, such as traditional and Roth IRAs. Employer sponsored plans, such as 401(k)’s, 403(b)’s 457, 401(a)’s, and so forth. Many different employer sponsored retirement plans out there. You could also consider using a pension. And a pension, don’t forget about previous employers, you may have a pension from a previous employer. So, remember that. Then there’s Social Security. Then there are stock options and restricted stock options. There are annuities. I did a video on annuities, you might want to check it out. And if you have an interest in a business, that could also be an income stream during retirement.
Getting ready for retirement will include running financial projections to help determine how much income you can comfortably expect to live on in your retirement years. And the retirement years should be protected out there saying now until the age of 94. But if you’ve got good genes on your side, good for you, plan to 100 or even beyond. Now ideally, the questions that you’re going to want to go over with your Fee Only Certified Financial Planner should be gone over at least 10 years prior to retirement. And they should be gone over periodically up until retirement.
So, if retirement cash can’t support your desired lifestyle, then choices have to be made. So, these might include working a bit longer until retiring. working part time in retirement. Could include reducing anticipated living expenses during retirement. And it could also include saving more while you’re still working. The longer the time until retirement, the more time you and your Fee Only Certified Financial Planner will have to make any required adjustments to your financial plan.
When will you take Social Security? Social Security benefits can be taken as early as the age of 62. But if you wait until your full retirement age, which is sometime around 66 and a little bit later for many of us, your benefits could increase by about 30% more than if you took it at the age of 62. And if you wait until the age of 70, your benefits would increase likely another 32%, 8% compounded per year that you wait between full retirement age and the age of 72.
Some takeaways from today’s video. Retirement planning can be daunting, especially with individuals increasingly responsible for their own financial well being into old age. The first step is to evaluate your lifestyle expectations and then set a financial goal that can meet those expectations. A retirement plan should consider personal savings and investments 401(k)’s or other employer sponsored retirement plans and IRA type retirement plans, social security and other forms of income that I mentioned earlier in the video. Talk to a financial professional to understand both how to plan and then what steps to take to start drawing down your assets in the most efficient manner.
Thank you for stopping by today. If you have any comments, questions, suggestions for other videos, please comment below. I am happy to take care of you. Again, Tina Anders, Anders wealth management in your corner always