An architect of a house would never start building a house before she drew the blueprint. That blueprint acts as the plan for what the house will look like, how it will stand, what measurements are needed, etc.
A retirement income plan is your blueprint for how to build your retirement years. Without income planning, you won’t know exactly how to fund your retirement, and you can’t even be sure if it will stay standing.
We believe retirement income planning is crucial to a healthy, successful retirement. While people have succeeded in retirement without an income plan, imagine how much more they could have benefitted from income planning.
Here’s three ways to know if retirement income planning is right for you:
It’s normal to feel worried about retirement. After all, you’re leaving many years of hard work and financial security in your career. You’re transitioning to a whole new lifestyle. How can you be sure you’ll be able to afford retirement and do all the things you’ve dreamed about?
The truth is retirement planning, and specifically income planning, can offer you the freedom to relax. Writing down the income numbers you need and figuring out where you will draw that money from can prove to be a calming exercise for anyone. Even if your income numbers come up short in the end, at least you know how big the gap is and can work to fill that gap.
A good number of pre-retirees make their own retirement income plan. There are plenty of resources online and in books that walk you through how to design your own plan.
This really depends on your personality. If you enjoy planning and want to feel you have full control, making your own income plan is definitely an option.
However, the majority of people planning to retiree probably don’t feel comfortable making their own income plan. Planning your retirement income can be a complicated process. One mistake can have huge implications for your retirement.
It’s understandable if you aren’t willing to take that chance. That’s why many people turn to a professional financial planner – someone who has devoted years to studying and understanding the “ins and outs” of retirement income planning.
Working with a licensed planner can greatly increase your wisdom and chances of planning your income to last as long as you do. You may already know someone you trust to help you with this process. If not, our ARI financial educators are a great knowledgeable resource!