If you are looking ahead to retirement, you need a financial planner you can trust. The professionals at GCPA can help. When you come in for your complimentary retirement plan assessment, we’ll:
- Review all of your accounts to discover the inconsistencies in your plan.
- Discover your distribution options if you have a pension.
- Review your Social Security options and create an income plan to maximize your benefit.
- Project your retirement expenses to determine whether your retirement income will last.
- Build a solid plan so you can retire with confidence.
A Comprehensive Approach to Your Retirement
Identify all your accounts by looking through the statements you receive, both on paper and online. While employer-sponsored plans and IRAs offer important opportunities for retirement savings, they may not be enough to provide the retirement you want. Personal savings will likely play a critical role in funding your retirement as well.
If you have company stock in your plan, determine if there are tax benefits available to you if you plan your distributions appropriately. If you have a pension, find out your distribution options from your employer. Look into Social Security and determine when you want to apply for benefits. Project your retirement expenses to determine whether your retirement income will cover them. Write down your goals for retirement and let’s review them together.
Getting Your Ducks In A Row
Many Americans own two or more 401(k) or IRA accounts. If you are one of these people, consolidating accounts can help you save time and may provide a more comprehensive view of your financial situation. You may also benefit from the perks of a higher balance such as waived fees. When you have multiple accounts, it can be more difficult to understand how much money you have and where it is. Over time, you may even lose track of some older accounts. Consolidating your accounts can save time by making account information more easily accessible. Determining which accounts to consolidate and handling retirement plan distributions can be complex and requires careful thought. At GCPA, we can help evaluate your situation and determine if consolidation is the right thing to do.
Generating Income in Retirement
Once you have the timing and order for withdrawals down, you’ll need a plan for generating cash flow while keeping some assets growing. We can show you how to provide income using three basic elements:
- A cash account for daily expenses
- A short-term reserve to cover emergencies and generate consistent income
- Long-term assets for potential growth
How Long Will Your Money Last?
With careful planning, your sources of income should be enough for a long, comfortable retirement. But if your expenses are more than you expected, or your investments haven’t performed well enough, you may need to bridge a gap between your costs and income.
Visit our Learning Center to access valuable financial tools, including a retirement calculator that can help you make a reasonable estimate of how long your money will last. If you find that your money might run out too soon, you may need to make some adjustments.
Strategies to Reduce Expenses or Increase Income:
- Find discretionary expenses that you can cut.
- Keeping an expense diary can help you evaluate your current expenses.
- Consider shifting money from low-interest checking or savings accounts into cd’s and annuities that pay higher interest rates and defer taxes.
- Reduce your mortgage and living expenses.
- Downsizing to a less expensive home or area can help you save on taxes, maintenance and other costs.
- Go back to work, at least part-time, to earn extra income and enjoy the benefits of remaining active.
Using a variety of investments, GCPA can help you turn your assets into a stream of income. This includes choosing appropriate investments for your cash reserve and long-term assets, as well as setting up a central cash account for your day-to-day expenses.
We can help you evaluate what you already have to determine the financial solutions that best fit your situation. Together we’ll create a customized retirement plan to help you reach your goals so you can confidently save the date for one of the most important financial dates of your life, your retirement.