If you haven’t met with a financial advisor yet to create a retirement plan, here are few things you should consider:
Income after Retirement
With so much at stake when planning a retirement income stream, it’s important to consider the major challenges most retirees face. Not only does your retirement account need to outpace inflation, you need to consider market fluctuations, Social Security uncertainty, healthcare risks and often the needs of your children or aging parents. While all of this may seem overwhelming, there are many sound strategies you can employ to pursue the retirement of your dreams. If you are still pre-retirement, you can look for ways to increase your monthly savings through greater contributions to your employee plan or IRA. During retirement, you can look for ways to cut spending, reduce debt or lower your withdrawal rate to ensure your money will last longer. Other options include taking a portion of your money and putting it in an investment that will create an income stream. It’s important to meet with a Financial Consultant before making any decisions to learn about your options and the possible risks of any investment.
The Employee Benefit Research Institute has estimated that if recent trends continue, a typical retiree who is age 65 now and lives to age 90 will need to allocate about $180,000 of his or her nest egg just for medical costs, including premiums for Medicare and Medicaid insurance to supplement Medicare. Because of the higher cost trends affecting private health insurance, the same retiree relying on insurance coverage from a former employer may need to allot nearly $300,000 to pay health insurance and Medicare premiums, as well as out-of pocket medical bills. Keeping the high cost of medical care in mind when planning for retirement is essential. Along with proper planning, there are several strategies available that can help cover health care costs or long term care needs. If someone you care for depends on your income, you also may want to consider life insurance. Consider talking with one of our team members to discuss the options available today that will help protect your retirement future.
What is happening in the market when you retire can be a key factor in your retirement income. For those that retire in a down year, their income can be negatively impacted. For others, a strong market year can give their retirement dollars a much needed boost. While not much can be done in terms of controlling the market when you retire, having a plan in place that takes market fluctuations into account and incorporates the appropriate risk based on retirement needs can make a huge difference. While diversification doesn’t prevent market loss, reviewing and rebalancing your portfolio often and determining if changes are necessary to keep you on track are an important part of any retirement plan. Also making sure you budget carefully, monitor income and expenses frequently, and take action whenever you see significant changes in income and expenses can be key. Meeting with a Financial Consultant for a quarterly or annual review can also help keep your retirement on track.
Planning is crucial when it comes to pursuing your retirement goals.
Whether you are concerned about retirement income, interested in learning about your options for a 401k or looking for strategic guidance on your investments our South State Financial Consultants can help. Our specialized, local team will take the time to understand your unique financial situation and develop a personalized plan tailored to your retirement vision.
*Please consult your tax-advisor for tax related issues.
**Products and services offered through LPL Financial.
Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC.). Insurance products are offered through LPL or its licensed affiliates. South State Bank and South State Investment Services are not registered as a broker-dealer or investment advisor. Registered representatives of LPL offer products and services using South State Investment Services and may also be employees of South State Bank. These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of, South State Bank or South State Investment Services. Securities and insurance offered through LPL or its affiliates are:
Not Insured by FDIC or Any Other Government Agency
Not Bank Guaranteed
Not Bank Deposits or Obligations
May Lose Value
The services offered within this investment site are available exclusively through our U.S. registered representatives and are available for U.S. residents only. LPL Financial U.S. registered representatives may only conduct business with residents of the states for which they are properly registered. Please note that not all of the investments and services mentioned are available in every state.