Do You Know Your ABC,C,C,C,’s of Retirement?

As Mother Nature has opened the door to another spring, and enough pollen to choke horse, reconsidering your financial planning strategies should be near the top of your spring cleaning checklist.

Retirement planning in America is constantly changing and with the constant volatility in the markets, and American’s living longer than ever, retirement planning calls for a brand new approach.

Here are four helpful C’s to help you navigate these shark infested financial planning waters.

CLARITY- Creating a solid retirement planning strategy must start with a clear picture, even scripture instructs us to “write the vision and make it plain”. so you must ask yourself (and be brutally honest) the following questions:

* How much income will you need in retirement?

* How many years might you live in retirement?

* What resources do you have to fund your retirement? (IRA’s, 401k, Annuities, pension, Personal Savings)

* What is your risk tolerance?

* Do you plan to leave anything to your heirs or charities?

COMFORTABILITY- When it comes to retirement planning being comfortable is a top priority. You have three major stages of retirement, 1.WHILE YOU ARE SAVING. 2. DURING YOUR TRANSITION INTO RETIREMENT. 3. WHEN YOU START RECEIVING INCOME.

Through all three stages, you want to make decisions that will not keep you up at night.

COST OF LIVING- For many retirees, increasing cost of living is a major concern. Many retirement strategies may not consider the effects that inflation can have on your savings over a ten or twenty year period. Inflation matters for several reasons:

* Inflation can help chip away at your purchasing power over time.

* Inflation can effect the cost of health care, because health care is rising far faster than the cost of consumer goods.

* Inflation matters because your current retirement vehicle(s) may not address its effects.

CERTAINTY- There are two certainties in retirement: Living longer and we will continue to experience market volatility.

In 1945, the average life expectancy was 68.4 years for women and 62.9 years for men. By 2015, the life expectancy was 81.4 years for women and 76.4 for men. respectively.

Market volatility and living longer but not necessarily better have led to retirement uncertainties.

With a little planning you can enjoy the THIRD certainty: knowing that you will always have a guaranteed income stream, no matter how long you live.

So as you sit in life’s classroom, it is my heartfelt wish that you continue to learn your ABC,C,C,C’s of financial planning.

IF YOU CHANGE YOUR FINANCIAL THINKING, YOU CAN CHANGE YOUR FINANCIAL FUTURE!

Rick Knight, Licensed Financial Professional, Author

knight532@juno.com