6-Step Retirement Income Strategy

I thought I'd share a retirment article by Betty Meredith and Kevin Seibert, which was featured on advisoranalyst.com:

"Building a retirement plan is far different from creating a standard financial plan. Not only do you have to extrapolate your needs for the next 20-30 years, but you also have to convert assets, allocate income, and optimize taxes. Retirement requires a process, not just products. There is no 'magic bullet' that can be applied to every situation. Here's a six-step guide to building a retirement plan:

Step 1. Estimate duration of retirement assets - Success or happiness in retirement requires integration of three major life areas: wealth, engagement, and health;

Step 2. Identify and manage retirement risks, such as : longevity risk, inflation risk, health care and long-term care risk, and investing risk;

Step 3. Identify distribution, tax and estate issues, and opportunities - Deferring an reducing taxes over time can have a substantial impact on the duration of a retiree's assets;

Step 4. Identify options for addressing gaps (i.e. postpone CCP, work part time, or create additional lifetime income);

Step 5. Convert resources into income;

Step 6. Maintain and update the plan - The plan should be reviewed at least annually. Several events can trigger a revision to the plan, such as: death of a family member, change in health, or actual spending differing from planned spending.

Remember - Retirement is a process.

GB