The Roadmap To Retirement
Getting Started On Your Journey
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.
- 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.
- 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.
- 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.
- 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
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.
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.
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.
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.