In today’s world, retirement can last 30 years or more, which makes it extremely important that you take longevity risk into account. After first creating your retirement plan, you must constantly review your strategies to make certain that you stay on track toward achieving a safe and rewarding life in retirement. It’s one thing to have a retirement plan on paper, but it’s another thing to have a plan that’s ready to be executed in the real world. So, how strong is your retirement plan? Here are a few questions to ask yourself to help test the strength of your plan for the future.

Does your plan distinguish between what you absolutely need to live, and what you want?

Everyone’s got big dreams for retirement, but not everyone remembers that there’s a difference between what you need to fulfill those dreams, and what you need to keep food on the table. Your retirement plan should be easy to read and draw a clear line between the money you need to fulfill a long-held dream, and the money you need for basics.

Do you know every guaranteed source of income you’ll have, and how much each will bring in?

Before you can see how much you’ll need to earn from your investments each month, you need to know how much money you’re guaranteed to bring in each month. These are the income sources like Social Security or a pension, where you know that you’ll earn something. You should be able to predict how much money you’ll have coming in each month from these sources, down to the dollar. That guaranteed income is your baseline.

Do you know how your different income sources will be taxed?

Social Security. Dividends. Capital gains. Retirement savings. All of them are taxed differently, and each of those taxes is going to be eating into your total nest egg. If you’ve planned ahead for those taxes, this shouldn’t be a problem. But if you aren’t thinking through that mathematical step, it could be bad in the long-run.

Are you thinking about inflation?

It’s important to remember the difference between money and purchasing power as you enter retirement – namely, as time goes on, each dollar you have saved will buy you less and less. That means you need to have more and more saved up, and you may want to make any big purchases sooner rather than later, before your savings depreciate too much. You don’t want to end up with a dwindled savings supply that doesn’t buy what you need it to buy for you.

Do you have a retirement plan that leaves you feeling confident? Most of us don’t have any experience writing retirement plans before we sit down to draw up our own, so our inexperience can lead us to think we have a perfect strategy when there are actually glaring flaws. You don’t want to find out the hard way that your plan wasn’t ready for action.

So, if it’s been a while since you last sat down one-on-one with a qualified financial professional, then  schedule your complimentary review. We’ll review your current strategy, and help you fill in any of the gaps along the way to help make sure that your plan is ready, and strong enough to last for the long road ahead.


**INFORMATION PROVIDED IS FROM SOURCES BELIEVED TO BE RELIABLE HOWEVER, WE CANNOT GUARANTEE OR REPRESENT THAT IT IS ACCURATE OR COMPLETE. NO STATEMENTS MADE SHALL CONSTITUTE ANY FINANCIAL, TAX, LEGAL, OR ACCOUNTING ADVICE. ANY HYPERLINKS PROVIDED ARE AS A COURTESY AND SHOULD NOT BE DEEMED AN ENDORSEMENT**

Securities and advisory services offered through Royal Alliance Associates, Inc. (RAA), member FINRA/ SIPC. RAA is separately owned and other entities and/or marketing names, products or services referenced here are independent of RAA. RAA is not affiliated with Lone Beacon

Neither the named representative nor the named Broker/Dealer or Investment Advisor gives tax or legal advice.

Fixed index annuities are designed to meet long-term needs for retirement income. Early withdrawals may result in loss of principal and credited interest due to surrender charges. Distributions may be subject to ordinary income tax and, if taken prior to age 59 ½, an additional 10% federal tax. An income rider or benefit (sometimes called Guaranteed Lifetime Withdrawal Benefits, or GLWB) is an additional feature available with some annuities and generally optional and come with additional cost. Income benefits are designed to provide income options above and beyond the standard annuitization or free withdrawal features in annuities. All contract gains beyond the CAP rate are surrendered to the insurance company to pay for the expense of the product.

The views expressed are not necessarily the opinion of Royal Alliance Associates Inc, and should not be construed directly or indirectly, as an offer to buy or sell any securities mentioned herein. Individual circumstances vary. Investing is subject to risks including loss of principal invested. No strategy can assure a profit against loss.