Most
people just invest for the future. You have a chance to do more.
Provided by Taylor McClish
Across the country, people are saving for that “someday” called retirement. Someday, their careers will end. Someday,
they may live off their savings or investments, plus Social Security. They know this, but many of them do not know
when, or how, it will happen. What is missing is a strategy – and a good
strategy might make a great difference.
A retirement strategy directly addresses the
“when, why, and how” of retiring. It can
even address the “where.” It breaks the whole process of getting ready for
retirement into actionable steps.
This
is so important. Too many people retire with doubts, unsure if they have enough
retirement money and uncertain of what their tomorrows will look like. Year
after year, many workers also retire earlier than they had planned, and
according to a 2019 study by the Employee Benefit Research Institute, about 43%
do. In contrast, you can save, invest, and act on your vision of retirement now
to chart a path toward your goals and the future you want to create for
yourself.1
Some
people dismiss having a long-range retirement strategy, since no one can
predict the future. Indeed, there are things about the future you cannot
control: how the stock market will perform, how the economy might do. That
said, you have partial or full control over other things: the way you save and
invest, your spending and your borrowing, the length and arc of your career,
and your health. You also have the chance to be proactive and to prepare for
the future.
A good retirement strategy has many elements. It sets financial objectives. It addresses your retirement income:
how much you may need, the sequence of account withdrawals, and the age at which you claim Social Security. It establishes (or
refines) an investment approach. It examines tax implications and potential tax
advantages. It takes possible health care costs into consideration and even the
transfer of assets to heirs.
A prudent retirement strategy also entertains different consequences. Financial advisors often use multiple-probability simulations to try and assess the degree of
financial risk to a retirement strategy, in case of an unexpected outcome.
These simulations can help to inform the advisor and the retiree or pre-retiree
about the “what ifs” that may affect a strategy. They also consider sequence of returns
risk, which refers to the uncertainty of the order of returns an investor may
receive over an extended period of time.2
Let a retirement strategy guide you. Ask a
financial professional to collaborate with you to create one, personalized for
your goals and dreams. When you have such a strategy, you know what steps to
take in pursuit of the future you want.
Taylor McClish may be reached at (503) 239-3060 or Taylor.McClish@cunamutual.com
This
material was prepared by MarketingPro, Inc., and does not necessarily represent
the views of the presenting party, nor their affiliates. All information is
believed to be from reliable sources; however we make no representation as to
its completeness or accuracy. Please note - investing involves risk, and past
performance is no guarantee of future results. The publisher is not engaged in
rendering legal, accounting or other professional services. If assistance is
needed, the reader is advised to engage the services of a competent
professional. This information should not be construed as investment, tax or
legal advice and may not be relied on for the purpose of avoiding any Federal
tax penalty. This is neither a solicitation nor recommendation to purchase or
sell any investment or insurance product or service, and should not be relied
upon as such. All indices are unmanaged and are not illustrative of any
particular investment.
Securities sold, advisory services offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA/SIPC, a registered broker/dealer and investment advisor. CBSI is under contract with the financial institution to make securities available to members. Not NCUA/NCUSIF/FDIC insured, May Lose Value, No Financial Institution Guarantee. Not a deposit of any financial institution. CUNA Brokerage Services, Inc., is a registered broker/dealer in all fifty states of the United States of America.
Citations.
1 -
ebri.org/docs/default-source/rcs/2019-rcs/rcs_19-fs-2_expect.pdf?sfvrsn=2a553f2f_4
[2019]
2 - investopedia.com/terms/m/montecarlosimulation.asp [6/10/19]