Remember the Financial Fundamentals for a Sturdy Retirement The Quincy Group

Having a strategy for how to invest your money is crucial to achieving the retirement you hope for. With no external income coming in, you’ll need to follow a new set of rules for managing your retirement income, expenses, and investments—not just to keep your portfolio growing—but to ensure you can live comfortably. To live the retirement you want, you must first understand the basics of financial literacy.

Where Will Your Income Come From?

When you retire, you’ll have to withdraw money from the investments and savings you earned throughout your career. Retirement income may come from employer-sponsored retirement accounts, individual retirement accounts, and Social Security. It’s crucial to understand how much money you’ll receive, when you’ll receive it, and how much you’ll get from each source. For example, Social Security is available starting at age 62, but experts recommend waiting until age 70 to get a bigger monthly payment. [1]

It is up to you how much you want to earn, but striving to make 80% of your prior income is recommended [2] through multiple income sources. Look into how this new income is taxed, as well as how your retirement income sources are affected by unexpected taxes. Overall, a comprehensive plan regarding when to utilize your different income sources will require a full understanding of your financial situation, assets, and objectives.

How Will You Budget?

Spending wisely is the key to a long retirement. Your spending is determined by the lifestyle you lead relative to your income. You can use your working days as a guideline for estimating how much you’ll spend on everyday living, particularly if you maintain the same lifestyle. You may have new expenses in retirement that come from hobbies, large purchases such as homes and cars, healthcare expenses, and significant financial decisions like relocating or traveling regularly.

You may still have to pay off your home mortgages or car loans, or you may still be required to pay for your children or grandchildren’s education. These expenses must be considered when estimating your spending. Healthcare and long-term care are some of the most under-budgeted expenses in retirement. Medicare only covers long-term care from age 65, so you must plan for health and long-term care as soon as possible. Part B, which covers regular physician visits, is not free! Therefore, when estimating your expenses in retirement, it is essential to prioritize your health and long-term care as soon as possible.

Understanding earning and spending in retirement are the first steps to financial literacy, empowering you to take control of your future. To further gain insight into your finances in retirement, sign up for a complimentary review with us.

 

**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.