Retirement Planning, retirement planning, where to begin. Well, sometimes the best way to plan for that future is to start with a mental picture of what you want your life in retirement to look like. Are you looking for the same lifestyle you have now, a more upscale and active lifestyle with more traveling, or a more subdued lifestyle? With the proper planning early enough, you can better control the lifestyle you want to lead in retirement. With no planning, look out!
At Houston Retirement Income Planners we help you plan at all stages of your life. Retirement Income Planning can begin early, and the earlier the better. Houston Retirement Income Planners also helps you plan later in life as you get closer to retirement, and of course, our planning continues during retirement.
Years ago, Retirement Income Planning was a lot simpler. Remember 7%, 8% and 9% CDs (Certificates of Deposit)? A one year CD today pays 2.03% - 2.15% at best. How about some 10 year U.S. Treasuries at 1.35%? How many do you want? (Rate Source: Wall Street Journal 2/26/20)
Years ago retirement planning in general was a lot simpler because life spans were so much shorter. For males born in 1900, their life expectancy was 51.5 years, and for females 58.3 years. Fast forward to today the life expectancy for men is 76 years and for women 81 years. (Sources: The Social Security Administration and the WHO, World Health Organization published 2018.)
In 1935 when Social Security was created by the Roosevelt administration for those who reached 65, the average life expectancy was only 61.9 years. You can see how from these numbers why the social security administration has been strained to meet the demands of those retiring today and continuing to live another 10, 20, and 30 plus years beyond 65. More and more of the retirement responsibility has been forced on individuals to make up the large social security gap, and more importantly our much longer life spans have greatly increased the significance of Retirement Income Planning.
Because of the number of years we live now beyond a retirement at 65, Retirement Income Planning has to take into account many more items to address for example:
Some Solutions... Since I have been in business some 33 years, I have prided myself on ferreting out opportunities in fixed income, while attempting to minimize risk. Currently I am making most of my fixed income purchase recommendations at what I believe are attractive rates of return. With the right mix of fixed income, growth investments, and growth & income investments, you may have a better opportunity to achieve your financial or retirement goals. There is no certainty that any investment strategy will be profitable or successful in achieving your investment objectives.
Remember, at Houston Retirement Income Planners, our goal is to help you "Not Outlive Your Money," live a comfortable retirement, and pass wealth on to your heirs in a tax efficient way through estate planning.