What’s Your Number?™

One of the biggest concerns we see from first-time visitors to our office is “Will we run out of money?” Because retirees don’t know how much they can spend in retirement, they often end up spending less than they could have, and end up not living the life that they could have. Here at The Retirement Solution, we look at all of your assets, forecast taxes and inflation, and provide you with a plan through age 100 to tell you how much you can spend every month of every year in your retirement. With that knowledge comes the freedom to know exactly how much you can do. Take that trip. Fly first class. Gift to the kids. Start a college fund for the grandkids. So, what’s your number?

For example, the funds you will need in the first 5 years are put into accounts and investments that are more liquid and are low risk. Funds that you will need in 5 to 20 years from now are typically placed in accounts that provide you with principle protection, liquidity, and the opportunities for growth. In contrast, the funds you will need further into your retirement, years 20+, are put into accounts and investments that are often at a higher risk, with higher potential growth. As you progress further into your retirement, those higher risk investments are transferred to low risk, with liquidity, so you are typically not drawing from high risk accounts for spending money, mitigating risk of loss due to market downturn.

What Is A Fiduciary?

A fiduciary is like a financial guardian who must always act in your best interest. A financial fiduciary, such as a Registered Investment Advisor, is legally obligated to prioritize your financial well-being when offering advice or managing your investments. On the other hand, a broker typically helps you buy and sell investments, often earning money based on their recommendations, which can sometimes be more beneficial for their own interests than the clients’. They might push certain products or investments that pay them higher commissions, even if those choices aren’t the best for you.

A Giant Leap For Retirement

Matt Perrone, Lead Planner at TRS, speaks on creating a mind-shift in retirement as savers transition to spenders. As he describes, many of our clients have been avid savers throughout their lives and professional careers.

In retirement, shifting into a new phase of life, they sometimes experience challenges with now spending the money they have so diligently saved and require a nudge from their planner to actually spend more. Sounds like a great problem to have. Listen to Matt explain how he helps his clients with this transition to a new phase of their lives.