The Roadmap To Retirement

Retirement planning is more than just saving money, it’s a journey that’s bound to include a few detours and forks in the road. That’s why it’s important to be prepared with a retirement roadmap that can keep you on track and provide guidance when you need it.

Getting Started On Your Journey

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The American Dream promises that if you work hard and have a successful career, you can retire comfortably with a hefty Social Security check and generous company pension. But the truth is, nearly 25% of all Americans will run out of money during their retirement years.

 

These days, it requires careful money management and thoughtful planning to enjoy a prosperous and active retirement. By working with a Tranel advisor, you can establish your financial goals and create an effective retirement roadmap for a secure and happy future.

Four Key Questions To Begin Your Roadmap To Retirement

Many Americans know that saving for retirement is important, but they’re not entirely sure how to get there. To get you started on the right path, there are four key questions to be answered that will help you develop a quality retirement plan that puts you in a position to succeed.

 

  1. What do I want my retirement to look like?
    • This is the exciting time when you can lay out all of your biggest dreams and goals for retirement. Start writing a wish list that includes where you want to live, travel destinations, hobbies and interests, and anything else that you want to pursue.
  2. How much do I need to save?
    • Your retirement savings plan should be built around your goals, current income, and time until you reach your expected retirement age. We offer a quick and easy retirement calculator that can help provide a rough estimate.
  3. How can I maximize my savings?
    • This is a crucial component to your plan that will most benefit from working with a dedicated financial advisor. Our advisors will assess your current situation to create a financial retirement plan that helps you get the most out of every dollar.
  4. What expenses will I need to cover?
    • Everybody’s expenses will be different while they’re in retirement—from medical costs to housing and more, no to expense breakdowns will look the same. As a general rule of thumb, you’ll likely need to replace 70% - 85% of your annual income in retirement
A roadmap to retirement

Achieve your financial goals

The Tranel Financial Group has been helping people achieve their retirement goals since 1988. Contact us today and we can help you build a personalized retirement plan.

Helpful Resources

Retirement Calculator

One of the most common questions we hear is, "How much do I need to retire?" While a thorough assessment of your portfolio and goals is needed to determine a more concrete figure, we do have a simple online calculator that will give you a rough estimate and help give you a better idea of how much money you'll need to retire.

A Guide To Cracking Open Your Nest Egg

This free ebook, The Sunny Side Up: A Guide To Cracking Open Your Retirement Nest Egg, teaches you important retirement planning concepts and strategies. You'll learn how to better manage your money and do some of the important things that will help you get on your way to a fulfilling retirement. Click the button below to learn more and download a free copy!

The Bucket System: A Roadmap to Consistent and Reliable Retirement Cash Flow

Think about your retirement nest egg as being divided into two buckets:

 

Income Bucket – the money from which you’ll draw an income stream during retirement
Growth Bucket – the money you’ll set aside to grow throughout your retirement

 

Your income bucket should equal the amount of income you’ll need to pull from your nest egg. The rest of your funds should be invested into your growth bucket. By dividing your retirement money this way, you’ll:

 

  • Have the flexibility to pull from your growth bucket when unexpected expenses arise
  • Increase your income over time by feeding your income bucket with savings from your growth bucket
  • Protect your money by moving funds from your more aggressive bucket to the more conservative bucket

The Benefits of the Bucket System

At Tranel, we believe that understanding the growth and income bucket strategy is key to overcoming many of the challenges of retirement, including:

 

  • Keeping up with inflation
  • Protecting your gains as you go
  • Taking advantage of dollar cost averaging
  • Overcoming the sequence of return risk
  • Staggering your time horizons
  • Helping ensure you don't run out of money
  • Helping maximize your potential
  • Helping control your emotions

 

To put your Bucket System strategy into place and enjoy greater peace of mind heading into retirement, schedule a complimentary meeting with one of our retirement advisors.

Retirement roadmap - golden nest egg for retirement and financial planning.

Key Factors That Can Impact Your Retirement

When using the Bucket System to develop your retirement roadmap, our advisors will take three important factors into consideration.

 

Time Horizon: It can be especially tricky to predict a time horizon for retirement planning since no one knows how long their retirement funds will need to last.
Sequence of Returns: This factor plays the biggest role in your retirement as you can’t control where your investments or the market will stand once you retire.
Dollar Cost Averaging: This is a method of growing your money over a reasonable amount of time through common methods like a 401k or contributing to an IRA.

Threats to Your Retirement

Even with careful planning, there are speed bumps that can slow down your journey toward a successful retirement. By becoming aware of these threats, you can help curb their impact on your future retirement funds.

 

  • Your Emotions-  Blindly following your emotions can lead to irrational decisions and cause you to make poor investments.
  • Your Fear-  Fear of losing money can keep you from investing and limit the funds you have available for retirement.
  • Tax and inflation-  These are uncomfortable factors that if not taken into account can decrease the value of your funds down the line.