Investing regularly can help put you on a path toward an independent and enjoyable retirement. Instead of relying on standard assumptions that aren't specific to your personal situation, get serious about your plans for retirement and how much income you're really going to need.
The lifestyle you want
Will your lifestyle change much after you retire and will those changes significantly affect your cost of living compared to your working years? Plans for extensive travel may mean you'll spend much more than someone who stays home. Moving to a new area, buying a second home or downsizing to a smaller place are other changes that could have a substantial impact on your cost of living.
Your timetable for retirement
What's your planned retirement age? Your answer will likely affect how much money you'll need for cash flow in retirement. Retire at age 62 and you may have to depend on your retirement resources for much longer than if you retire at age 68.
How long is the big question. According to government data, a 65-year-old has a remaining life expectancy of 19.2 years.* However, advances in medicine or other factors may continue to lengthen lifespans even more. Your retirement and the associated costs could last 30 years or longer. That makes it essential to plan ahead. Talk to your financial professional about investing in a traditional or Roth individual retirement account (IRA) to boost your retirement funds.
Future income
Project how much income you may receive from all sources and when it will become available. Common income sources include Social Security (go to www.socialsecurity.gov/mystatement for your statement), retirement plan benefits through work and personal investments.
Factor in inflation
Don't ignore the impact of inflation on the money you'll be relying on to fund your retirement. Make sure your portfolio contains some investments that have the potential to earn a rate of return greater than the annual inflation rate.
The input and insights of your financial professional can help you meet the challenges of preparing for retirement.
* Health, United States, 2011, U.S. Department of Health and Human Services, 2012
FINRA Reference #FR2012-0821-0291/E 12/05/12
The lifestyle you want
Will your lifestyle change much after you retire and will those changes significantly affect your cost of living compared to your working years? Plans for extensive travel may mean you'll spend much more than someone who stays home. Moving to a new area, buying a second home or downsizing to a smaller place are other changes that could have a substantial impact on your cost of living.
Your timetable for retirement
What's your planned retirement age? Your answer will likely affect how much money you'll need for cash flow in retirement. Retire at age 62 and you may have to depend on your retirement resources for much longer than if you retire at age 68.
How long is the big question. According to government data, a 65-year-old has a remaining life expectancy of 19.2 years.* However, advances in medicine or other factors may continue to lengthen lifespans even more. Your retirement and the associated costs could last 30 years or longer. That makes it essential to plan ahead. Talk to your financial professional about investing in a traditional or Roth individual retirement account (IRA) to boost your retirement funds.
Future income
Project how much income you may receive from all sources and when it will become available. Common income sources include Social Security (go to www.socialsecurity.gov/mystatement for your statement), retirement plan benefits through work and personal investments.
Factor in inflation
Don't ignore the impact of inflation on the money you'll be relying on to fund your retirement. Make sure your portfolio contains some investments that have the potential to earn a rate of return greater than the annual inflation rate.
The input and insights of your financial professional can help you meet the challenges of preparing for retirement.
* Health, United States, 2011, U.S. Department of Health and Human Services, 2012
FINRA Reference #FR2012-0821-0291/E 12/05/12
Northbeam Financial, Inc. and LTM Publishing, Inc. are unrelated.
This is an advertisement prepared by LTM Publishing, Inc. for the use of the sender. Articles are not written or produced by the named representative. The advertisement provided is not intended as legal or tax advice and may not be relied on for purposes of avoiding federal tax penalties. All individuals, including those involved in the estate planning process, are advised to meet with their tax and legal professionals. The individual sponsoring this newsletter will work with your tax and legal advisors to help select appropriate product solutions. We do not endorse or guarantee the content or services of any website mentioned in this newsletter. We encourage you to review the privacy policy of each website you visit. Limitations, restrictions and other rules and regulations apply to many of the financial and insurance products and concepts presented in this newsletter, and they may differ according to individual situations. The publisher does not assume liability for financial decisions based on the newsletter's contents. Great care has been taken to ensure the accuracy of the newsletter copy at press time; however, markets and tax information can change suddenly. Whole or partial reproduction of Let's Talk Money® without the written permission of the publisher is forbidden. ©LTM Publishing, Inc., 2012.
We Value Your Input... Your feedback is very important to us. If you have any questions about any of the subjects covered here, or suggestions for future issues, please don't hesitate to call. It's always a pleasure to hear from you.
This is an advertisement prepared by LTM Publishing, Inc. for the use of the sender. Articles are not written or produced by the named representative. The advertisement provided is not intended as legal or tax advice and may not be relied on for purposes of avoiding federal tax penalties. All individuals, including those involved in the estate planning process, are advised to meet with their tax and legal professionals. The individual sponsoring this newsletter will work with your tax and legal advisors to help select appropriate product solutions. We do not endorse or guarantee the content or services of any website mentioned in this newsletter. We encourage you to review the privacy policy of each website you visit. Limitations, restrictions and other rules and regulations apply to many of the financial and insurance products and concepts presented in this newsletter, and they may differ according to individual situations. The publisher does not assume liability for financial decisions based on the newsletter's contents. Great care has been taken to ensure the accuracy of the newsletter copy at press time; however, markets and tax information can change suddenly. Whole or partial reproduction of Let's Talk Money® without the written permission of the publisher is forbidden. ©LTM Publishing, Inc., 2012.
We Value Your Input... Your feedback is very important to us. If you have any questions about any of the subjects covered here, or suggestions for future issues, please don't hesitate to call. It's always a pleasure to hear from you.
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