The biggest risk you face in retirement isn’t losing all your money. The biggest risk you face in retirement is more about how much retirement income you can generate. Far too often, I find people focused on losing value on an investment rather than they are about the success or the likelihood of success of their planning.
It’s really more about Cash Flow. How much money you spend versus how much you receive. How much you pay in taxes versus how much you could avoid in taxes.
Most of the time, you don't understand how to do that if you’re doing it on your own.
Assuming that you have an $8,000 monthly income goal in retirement, at a 2.4% inflation rate, that $8,000 will go to $9,200 in year five. In year ten, it goes to $10,600. By year twenty, it’s now $14,200, and wow - by the 30th year of retirement - that $8,000 monthly income - it’s going to take $19,000 to buy the same amount of goods and services. If you’re not planning to increase your income, then you’re planning on spending your assets or running out of money.
Don’t get over-weighted in fixed income. You really need to have a diversified portfolio that speaks to what your needs are, and you need to understand what your needs are. Life in retirement is about Cash Flow. Not necessarily about how many assets you have.
At Summit Wealth Group, we help people understand their personal situation. We provide simple, understandable solutions to what they're doing. Identifying the risks and opportunities that our clients have is really important to helping them make wise decisions for the future.
Maybe it’s time we sat down and had a cup of coffee and talked about how Summit Wealth Group might work into your situation.