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Retirement Planning for the Next Phase of Life

Whether you’re still early in your career or just a few years away from retirement, here at Independent Financial Services we know that you want to live your best life after you retire. We are here to help you build up enough assets to provide adequate income to meet your needs through retirement. Our professional team has the resources to help you plan for the retirement lifestyle you want.

We work diligently to serve as a steward for your wealth, offering a range of strategies tailored to your needs.

With a comprehensive range of retirement planning services, as well as a dedicated and knowledgeable staff to help with planning, we are well-positioned to help you create the best retirement plan for you.

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A Plan to Turn Your Vision Into Reality

Have you imagined what your life after retirement will be like?

Do you have a plan in place to realize that vision?

What would that look like?

One of our advisors will work closely with you to understand your personal goals – when you want to retire, where you want to live, what type of home you want, what activities interest you, what sights you want to see. Careful consideration will be given to the variables involved and how to make the most of your resources. We have the tools and resources to develop a plan that gives you the chance to achieve your goals.

Planning Services to Help Your Money Work Smarter

The retirement landscape is changing, with future generations of retirees facing longer lifespans and greater dependence on personal savings to secure a comfortable future. You’ll need income beyond your working years, but how much? And from what sources?

We know these are the dizzying questions that can keep you up at night.

At Independent Financial Services, we can assist you in allocating your resources, with consideration given to tax implications that could make your money go farther. We can help manage your cash flow – now and well into future.

IRAs to Meet Your Retirement Saving Needs

In planning for retirement, an Individual Retirement Account (IRA) offers one of the few ways to invest – often with pre-tax dollars – so that any growth in the account is tax-free until withdrawn. Through a Raymond James Self-Directed IRA, our clients enjoy the convenience of investing in stocks, bonds, mutual funds, certificates of deposit (CDs) and other alternatives, and having those investments reported on one statement.

For details about this service or IRAs in general, please contact us today.

https://www.raymondjames.com/wealth-management/advice-products-and-services/financial-and-retirement-planning

The psychological side of spending your retirement savings

Retirement and Longevity

Many investors worry about outliving their savings. As a result, they sometimes underestimate what they can comfortably spend in retirement.

For years, you’ve been saving and investing for retirement.

But what happens when you finally retire and it’s time to switch gears from saving to spending?

It turns out many people are so focused on accu­mulating assets that they never really think about actually withdrawing the money.

In fact, recent studies show that many retirees aren’t drawing down their retirement portfolios, opting instead to live on Social Security and the required minimum distributions (also known as RMDs) so their portfolios can continue to grow.

However, this may lead to unnecessary sacrifices in a retiree’s standard of living. After almost two decades in retirement, most cur­rent retirees still have 80% of their pre-retirement savings, according to research from BlackRock.

The Problem With Uncertainty

So why aren’t these retirees spending their nest eggs? Some may be spending as little as possible to leave behind a larger sum for their loved ones or philanthropic pursuits. But in many cases, it’s because they aren’t sure how to determine a sustainable withdrawal rate that accounts for their total lifespan. They worry about the “what ifs” retirement may throw their way and want to be prepared. You may be able to relate.

This latter group understands that over the course of a long-term retire­ment, inflation can erode sav­ings. Portfolio returns can vary, and healthcare costs can quickly escalate. And they may be con­cerned about outliving their savings. According to the Insured Retirement Institute, only 25% of baby boomers believe their savings will last throughout retirement. By spending less and allowing their savings to potentially grow in the early years of retire­ment, they hope to offset some of the uncertainty.

Collaborating with one of our financial advisors can help increase your confidence about having enough money to live comfortably in retirement. Just like in your working years, you can estab­lish a just-in-case cash cushion or line of credit that helps put you at ease. Having a sound distribution strategy in place – one that takes into account your income sources, lifestyle, asset locations and tax situation – can help you enjoy the retirement lifestyle you’ve always envisioned.

Withdrawing Your Money
When it comes to withdrawing your retirement savings, here are a few things to consider:

Organize Your Expenses:

Three typical categories include essential expenses (think food, housing and insurance), lifestyle expenses (vacations, hobbies) and unexpected expenses (healthcare costs, auto repairs). Consider paying for your essential expenses with guaranteed income sources such as Social Security or annuities. Use growth or income investments to pay for lifestyle expenses and maintain a cash reserve for any unexpected costs that might occur.

Be Flexible.

For instance, a downturn in the market is a good time to tighten the reins on your spending. But if you experience some unexpected invest­ment gains, the timing might be right for that dream vacation.

There’s little doubt your income needs will fluctuate during retirement. The early years may be filled with travel and other big-ticket purchases that require more sub­stantial withdrawals. As time goes on, you’ll likely travel less, but your healthcare expenses may increase. Studies show that spending tends to decline in the later years of retirement, most likely the result of less travel and similar pursuits. According to the Bureau of Labor Statistics, people aged 55 to 64 spend on average $60,076 per year, compared to people aged 65 and over spending only $45,221 annually.

Building in flexibility allows you to go with the flow. Just be sure to regularly touch base with your advisor so your budget can stay on track.

Review Your Plan.

Work with your advisor to develop and review your retirement income and distribution strategies. You can run hypo­thetical simulations based on different withdrawal rates, how many years you will live in retirement, or any other contingencies. This will allow you to develop a better idea of how much you can comfortably and confidently spend in retirement to achieve your goals.

Everyone’s retire­ment situation is different. You may have encountered some unexpected circumstances, such as a layoff or forced retirement that occurred ear­lier than you planned, and you weren’t able to save as much as you hoped. On the other hand, leaving a legacy may be your primary goal. Whatever the case may be, establishing a withdrawal strategy that’s right for you – while also keeping your emotions in check – is often a good plan of action.

Sources: kitces.com; forbes.com; cnbc.com; ournextlife.com; smartaboutmoney.org; thestreet.com; kiplinger.com; myirionline.org

Raymond James and its advisors do not offer tax advice. You should discuss any tax matters with the appropriate professional.