Planning is essential. Without a retirement GPS you are at a steep disadvantage, adding to the risks of falling short of your goals. Assuming you have a choice, are you prepared to work forever or do you want to retire early? How much money do you need to retire when you want? How much will you need to withdraw from your savings each year to sustain the lifestyle you dream of? How long will you live? How much can you spend without running out of money? Should you count on social security? What about inflation?
With increasing longevity and a constantly rising cost of living, especially for health care, retirement portfolios have to produce growing income for a very long time. How can you grow income from year to year without exacerbating depletion risk? How much volatility and market risk do you have to bear to achieve your personal goals? Will portfolio losses mean reduced income and a compromised standard of living? Will you ever recover?
A plan clarifies your objectives, surfaces your challenges, and provides benchmarks for making adjustments along the way. Above all, whether referring to capital, risk or return, it can tell us when enough is enough. We stress the importance of basing your plan on realistic expectations, preparing you for the worst market conditions while positioned to participate in the best. Without a map to keep you on path, you can get lost. Without a game plan we don’t know what you need or what to recommend.