As a Retirement Lifestyle Planner, our focus is on helping clients give themselves permission to spend the income we help create for them no matter what the market does or how long they live. We start with determining their costs to live AND we discuss at length with them what their non-negotiable experiences and memories they want to share with loved ones and friends. Once we have that, we build the right amount of Protected Lifetime Income to pay those costs for the rest of their lives, no matter how long that is. We also peel off the right amount of their portfolio in building in an Inflation Shield...for most our Protected Index Inflation Shield provides them with safe & productive growth to battle inflation during market volatility most everyone experiences over a longer retirement. We're able to model this against other retirement income strategies with less certainty to find the right balance for each client!
Navigating the journey to a financially secure retirement can often feel like trying to sail through unpredictable seas. One effective strategy that stands out is the "bucket" approach to saving and investing. This method involves dividing your retirement savings into three distinct buckets based on the time horizon for when these funds will be needed. The first bucket holds your short-term funds, which you'll need within the first few years of retirement. This portion is usually kept in highly liquid and low-risk investments. The second bucket is for the medium term and can handle slightly higher risks for better returns, while the third is for long-term growth, potentially using stocks or real estate, to combat inflation over decades. Employing the bucket strategy helps in smoothing out the risks and returns of your retirement funds, ensuring that you have immediate cash available while still fostering growth for future needs. This approach not only organizes your savings visually and functionally but also tailors to the adaptability required as personal circumstances or market conditions change. By effectively managing these buckets, retirees can enjoy a more stable financial state with a structured plan that grows and adapts with them through the years.