Retirement Plan
A retirement plan should be a written document that includes your plans for the following issues. If you have felt uncomfortable and unsure during your retirement, it's probably because you don;t have a written plan., So instead of certainty, you have uncertainty. Dod the builder construct your house without a plan? Of course not. End your discomfort and have a retiremen t planner build a plan for you. They can also meet with you annually and help you update your plan and keep you on track.
Your Investments
When it comes to investing, most people just "wing it." And that's why they don't do well. If you are doiung it yourself or using a planner, your plan must address:
What is the allocation between fixed income and growth investments?
Will these be fixed over time and if so, when will the porfolio be rebalanced (e.g. annually?)
Or will there by a tactical allocation system used that varies the proporation of fixed income and groiweth investments and what are thye criteris on which the allocation is varied?
What types of investments will be used (mutual funds, individual stocks or bionds, what quality, rating, duration, annuities)
Your Spending Plan
This includes a monthly budget and from where the funds come (e.g. from which pot of money)
Your Retirement Distribution Plan
Once you turn age 70 1/2, you must start distrinbutions from your retirement plan(s). If you have more than one
From what plans will you withdraw?
Monthly or annually
Do these funds become part of your living expenses or reinvested?
Your Tax Reduction Plan
Thsi requires a pro-forma estimate of your future tax situation in order to minimize your taxes. Use of Turbo-tax or other software can make this very easy and allows you to use the lower tax brackets to the fullest. For example, rather than waiting to age 70 1/2 for IRA distributions, if you are in a low tax bracket, say 15%, it may pay to start IRA distributions eraly and use up the low tax brackets of 15% and 25%. Possibly, if you wait until later and there is a larger jump in your income because of large IRA distribtuiuos, you may end up paying 30% tax on some of your funds. Also to be considfered is the conversion of your retiremen t funds from tax deferred to tax free.
Estate Plan
Have you had the following documents prepared?
- advance directive
- living will durable power of attroney for finances
- durable power of attroieny for health care
- will or living trust
Have the people being appointed as trustee or attroeny in fact been notified? Do they understand their respnsibilities? When it comes to your IRA or retirement accounts, do you have copiues of your benevficiary forms in case the bank or securities firm has lost these?
Find a retirement planner that can help you biuld your retirement plan
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