Retirement Planning
It is said that roughly 85% of all deaths on Mt. Everest occur when climbers are descending. Getting to the top is the first part of the journey.
Like mountain climbing, retirement has an ascending and descending phase. During your working years, you earn a paycheck and set aside a portion of it to save and invest. Watching your accounts grow in value is the first half of the game.
The second half starts once you reach retirement and have to withdraw money from your savings, whether it's IRAs, 401(k) plans, real estate, or regular investment accounts, to pay your bills.
This will have a much different look and feel than when you were working and earning a paycheck. Since no one is really familiar or experienced with this, the number of financial slip-ups and bad decisions can increase. The good news is many of them can be avoided with proper planning.
Ultimately, most people begin retirement with a finite amount of money which gets depleted through withdrawals and Required Minimum Distributions. The question is; how long will their money last?
This descent, so to speak, can be stressful. The retirement planning process will help you maximize retirement income, reduce the risk of running out of money, address unexpected costs, and efficiently leave money to the next generation. This way you have a worry-free retirement with lifetime income you cannot outlive and a plan to avoid the common mistakes others will make.