Retirement planning is the process of organizing your finances so that you are able to live comfortably in retirement. This usually includes saving for retirement, figuring out how much money you will need to live on each year, and creating a plan to draw from your savings. It’s a tall order, but it’s something everyone needs to concern themselves with. You’ll probably receive multiple streams of income during retirement, from various retirement accounts, pensions, Social Security, investments, and personal savings. With the help of a financial advisor, you can ensure that your retirement will be financially secure and comfortable.

You probably already know you should have a retirement plan in place. While you can receive Social Security benefits as young as age 62, those are likely not enough to pay your bills. Most people need more, especially if they have to pay for extensive medical care. Ideally, when you plan for retirement, you don’t just think about the bare necessities. Now might be the time to travel the world or buy a sailboat. With proper planning, you can have the retirement of your dreams.

Incidentally, retirement planning also includes planning for your long-term care needs and it should also focus on protecting your current and future wealth. Once you reach retirement age, the plan will shift to focus on the distribution of assets. Our financial advisors are with you every step of the way.

Do you know what’s not a good retirement plan? Playing the lottery or buying stocks from only one company and hoping it goes up in value. Experts agree you must protect your wealth by diversifying your portfolio holdings and keeping track of its performance. That’s what a financial planner is for.

When you invest in a retirement plan, you can take advantage of tax breaks offered by the IRS. You’re allowed to make contributions to your retirement fund with pre-tax income. This allows you to grow your nest egg in a tax-sheltered account. You’ll only have to pay taxes when you take money out.

If you’ve already maxed out all your retirement accounts at work, you can set up individual retirement accounts. These have their own contribution limits. After that, you can set up investment accounts to take advantage of compound interest and the performance of the stock market. Our financial advisor can break it down for you and talk about which type of retirement and investment accounts make the most sense for your situation.

Don't be scared or discouraged by the notion of saving for retirement. You may begin one step at a time by creating a retirement plan now. Call us and we’ll talk about your financial situations and your goals. At Ackerman Financial Group, we are here to help you simplify the process and offer the peace of mind that comes when you have a plan in place for your financial future.