retirement planning
Retirement tends to be the part of life that most people look toward after their working days are through. However, the face of retirement is changing. People are living longer and enjoying healthier and more active retirement years. This can make planning for a financially secure retirement more challenging. It will take greater resources to provide for this extended period of time. This portion of your financial plan evaluates your sources of income after you retire. We can provide projections assuming retirement at different dates or ages. Obviously, the longer you work and the longer your funds can accumulate, the more potential income will be available.
The Retirement Plan Analysis will include consideration of the timing and tax efficiency of distributions from your retirement assets. It will also assist you in understanding the alternatives available to you and the ramifications of elections to be made relative to your employee benefits and other plans.
We will develop customised displays reflecting your sources of income upon retirement, estimate income taxes on that amount, and compare the result to your after-tax retirement income goal, the amount you need to meet your expenses. To be realistic, your expenses will be inflated to reflect the effects of inflation on your purchasing power.
Our retirement planning will include an analysis of the capital you need to invest and the rate of return you need to achieve to be able to attain your desired retirement income.
Post-Retirement Planning
Once you’ve made the decision to step out of the workforce, you want to be confident in the financial decisions you are making. That’s where post-retirement planning comes in.
Maintaining a comfortable lifestyle in retirement requires finding ways to increase income from investments. But it also calls for risk mitigation. Uncovering opportunities that help meet your retirement wealth goals is the focus of our service.
Considerations in Post-Retirement Planning
Maintaining income in retirement calls for carefully balancing saving and spending. Our service can help you keep this equilibrium. To make sure your finances are balanced, we will talk to you about your assets and expenditures. By understanding your unique retirement plans, we can anticipate financial considerations that may affect you. Our job is even more rewarding if we bring up something you hadn’t yet considered.
Professional Capital can help you determined whether your retirement accounts have the required size and calculate the required rate of return to maintain your account balance following regular withdrawals. In short, your goal is to have a retirement account withdrawal rate that meets your income needs but preserves the account principal. It’s a balance that involves the entire picture of your wealth.
Post-Retirement Planning to Fit Your Lifestyle
Whether your retirement lifestyle is well-appointed or modest, you want to make the most of every pound. We help clients understand how investments and savings can produce income for you in retirement and the risks that come with your money options.
Managing a post-retirement budget requires savvy. While cutting back on spending is an obvious strategy, it’s not the only one. Professional Capital may recommend the following strategies (or more) in post-retirement planning:
- Conduct a cash flow analysis: Have a baseline for how much you’ll need each month to pay for expenses
- Rebalance your portfolio: Practice risk mitigation as you look for ways to increase return potential
- Set up a sustainable withdrawal rate of your investments: To avoid depletion of assets too early
- Create customised investment strategies for post - retirement: We employ different strategies to mitigate investment risks
- Play catch-up: Make additional contributions to your retirement accounts
- Downsize: Move to more affordable housing and drive less expensive cars
- Take care of yourself: Reduce medical costs by keeping in good health
Holistic Post-Retirement Planning
No two retirements look the same. Your post-retirement planning will reveal different needs that require different financial products and services.
Professional Capital can help you understand risk mitigation as you strive for financial security in your retirement. Together we look at the big picture and make a plan that brings balance to your financial life.