What Makes a Good Retirement Strategy?

One of my most asked questions has always been “What makes a good retirement strategy?” For such a simple question, there’s a lot to the answer and most of it is very personal to the one asking it.

In today’s article, I’m going over some basics to what makes a good retirement strategy and how you can start strategizing and personalizing your retirement today.

Across the country, people are saving for that “someday” called retirement.

Someday, their careers will end. Someday, they may live off their savings or investments, plus Social Security.  They know this, but many of them do not know when, or how, it will happen.

What is missing is a strategy – and a good strategy might make a great difference.

A retirement strategy directly addresses the “when, why, and how” of retiring.

It can even address the “where.” It breaks the whole process of getting ready for retirement into actionable steps. 

This is so important. Too many people retire with doubts, unsure if they have enough retirement money and uncertain of what their tomorrows will look like.

Year after year, many workers also retire earlier than they had expected, and according to a 2022 study by the Employee Benefit Research Institute, about 47% do.

In contrast, you can save, invest, and act on your vision of retirement now to chart a path toward your goals and the future you want to create for yourself.1  

Related: The Top Questions to Consider Before You Retire

Since it’s impossible to predict the future, some people dismiss having a long-range retirement strategy.

Indeed, there are things about the future you cannot control: how the stock market will perform, how the economy might do. 

That said, you have partial or full control over other things: the way you save and invest, your spending and your borrowing, the length and arc of your career, and your health. You also have the chance to be proactive and to prepare for the future. 

If you’re thinking of making any changes or need help navigating your own personal situation, please be sure to contact our office before making any changes. We can help you look at all angles of your circumstances and create a strategy that’s aligned with your financial goals.

A good retirement strategy has many elements.

These elements should include:

  • Your strategy should sets financial objectives.
  • It should address your retirement income: how much you may need, the sequence of account withdrawals, and the age at which you claim Social Security.
  • Your retirement strategy should establish (or refine) an investment approach.
  • It should examine financial implications and possible health care costs, as well as the transfer of assets to heirs.

Addressing the potential threat of extended care expenses may be one of the biggest financial challenges for individuals who are developing a retirement strategy.

To help you navigate the basics of extended care, and shed some light on what some strategies would look like, I put together a huge resource for you.

This resource is designed to help you better navigate all of the ins and outs of extended care. In the boxes below, enter in your info and we’ll send it right to your inbox.

A prudent retirement strategy also entertains different consequences.

Financial professionals often use multiple-probability simulations to try and assess the degree of financial risk to a retirement strategy, in case of an unexpected outcome.

These simulations can help to inform the financial professional and the retiree or pre-retiree about the “what ifs” that may affect a strategy. They also consider sequence of returns risk, which refers to the uncertainty of the order of returns an investor may receive over an extended period of time.2

Related: Market Cycles and Retirement: Sequence of Return Risk in Portfolios

Let a retirement strategy guide you.

We’re able to collaborate with you to create one, personalized for your goals and dreams. When you have such a strategy, you know what steps to take in pursuit of the future you want.

If you need help sorting out what options would work for you and your family, please reach out to our office. We’re here to help you navigate what best suits your goals and personal circumstances and will help you find the best solution for you.