Can Your Retirement Plan Answer the What Ifs?
One of the biggest advantages of having a written retirement plan is that you can actually see how the pieces of your financial life fit together.
I can tell someone they are probably going to be okay in retirement.
But "probably" is not much of a plan.
I would rather put the numbers on paper and start asking questions.
What if the market drops?
What if I need more income?
What if taxes increase?
What if my spouse dies before I do?
What if healthcare costs are higher than expected?
What if I live to 95?
Those are the kinds of questions retirement planning should help you explore.
What Should a Retirement Plan Include?
I believe a comprehensive retirement plan should look at much more than investments.
Your investments matter, but so do your income, Social Security, taxes, healthcare expenses, estate planning goals, and the amount of risk you are comfortable taking.
More importantly, those pieces should work together.
Suppose you decide you want more income for travel during the first several years of retirement.
Where does that money come from?
Does taking more from an IRA increase your taxable income?
Could that affect other parts of your financial picture?
Should you take money from another account instead?
One decision can affect several other parts of your plan.
That is why having everything written down can be so valuable.
A Written Plan Gives You a Guide
A retirement plan should not lock you into one strategy for the rest of your life.
It should do the opposite.
It should give you a framework for making changes.
When something changes, you can return to the plan and ask, "If we adjust this, what happens over here?"
That is much different than making financial decisions one at a time without understanding how they affect everything else.
I have worked with plenty of people who were successful savers. They built substantial retirement accounts through years of hard work and discipline.
But success at saving does not automatically create a retirement income strategy.
Eventually, those dollars need a purpose.
They need to provide income. They need to address taxes. They need to account for risk. And ideally, they need to help you enjoy the retirement you spent all those years working toward.
A written plan gives you a roadmap.
And when you can see where you are going, I believe it becomes a whole lot easier to have confidence in the journey.
If you would like to see how your current plan may hold up when life, markets, taxes, or expenses change, call Legacy Retirement Group at 614 336 7660 and schedule a time to talk with our team.