While you may understand that it’s important to get your retirement investment portfolio in order sooner rather than later, it can be hard to know where to start—or even what questions to ask.  Are you overdue for a conversation?

Do you tell yourself you’ll just never retire?

When it comes to a retirement date, you may have less of a choice than you think. For many people, retirement comes earlier than they expect. The unfortunate truth is that while over one in four workers (29%) expect to retire at age 70 or beyond, if at all, only 7% of retirees report this is the case. No matter how long you plan to work, your body may have other plans—or you may need to care for aging parents. The numbers are sobering: about 40% of adults who are 65 or older have at least one type of disability, according to the Centers for Disease Control and Prevention. A recent study from the Employee Benefit Research Institute reveals that 52% of workers who retired early did so due to changes in their workplace. This just further underscores the possibility that your retirement date may not be completely under your control.

How long will your money need to last?

We are blessed to live in a day and age where the average life expectancy is longer than ever.  However, the added years mean you will need to plan for additional living expenses. As you consider where your retirement dollars will come from, you’ll look at how much you have, how much you’ll need, consider opportunities for your money to grow, all while being smart about taxes.

The time to create a financial roadmap is now.

Step 1: Figure out how much you will need

Our planning software makes it easier, and this number is extremely important to know. Don’t let a large number deter you. The driving factors here are your monthly and annual expenses. What is your projected date to be debt-free? From there, add up everything you will receive in retirement, including Social Security and any possible pensions.

Step 2: Choose an investment strategy that is diversified and aligns with your retirement timeline

It’s never too late or too soon to make a plan and start saving. Diversification is the golden rule of investment, and it becomes critical for retirement. For most retirees, the primary sources of retirement income are Social Security, Retirement Savings, Personal Savings (and Investments), and Earnings from continued employment. Creating and utilizing multiple retirement income streams will put you in a better position to live your retirement dreams.

Step 3: Make a plan for withdrawal 

Even though you plan for it, it can be disconcerting to change from being a saver to a spender of your retirement account. You and your financial planner can determine when to start drawing from Social Security, what percentage to draw down from your savings, and how much to have set aside for easy access.

A steady source of income during retirement is possible, but it takes planning. The sooner you make a plan, the sooner you can have financial peace of mind, instead of just hoping for the best. Save diligently, invest conscientiously, and determine the best payout options when the time comes to draw down your funds. At Servant Solutions, we are your partner in planning. Contact us today to begin the FREE financial roadmap process available to all of our members.