Will I Have Enough Money When I Retire?

With longer and longer life expectancies comes ever-increasing lengths of retirement.  If you have ever done more than just dream about retirement, you may have found planning for retirement to be a bit intimidating. Many people only make it to the dreaming phase; not having enough time,focus, or motivation for planning.

Why retire?

At Shepherd, we don’t believe in retiring just to a life of leisure with no purpose.  We find that folks who do that end up less happy and ultimately unfulfilled.  Rather, being financially freed up from work to pursue bigger and richer dreams offers limitless potential for God to use us in the lives of our loved ones and others.  Regardless of your motivation for retirement, there are important questions to consider.

The first and most important question is, when you retire, will you have enough money to last throughout your retirement?  That’s where retirement planning comes into play.

What Is Retirement Planning?

Retirement planning can be broken down into two main areas; determining how much money will be needed for your retirement goals and putting a plan in place to reach those goals.

Because the future is so uncertain (James 4:13-15), there is no magic financial number that can guarantee financial security.  But we can have a reasonable basis for belief that our long-term financial goals are achievable.  To determine the feasibility of your goals (including retirement), we run 1,000 different scenarios to illustrate potential paths for the your financial future.

We then adjust certain variables and goals and will help you develop a plan that gives you confidence for the path you’ve chosen.

Saving, Investing, and Manage Money

It’s never too soon to start saving money and, generally speaking, you should be saving 15% of your income in the form of a 401k or IRA (both of these can be in a Traditional or Roth format depending on your tax situation).  We’ll work with you on specific details to determine what are the right amounts and types of accounts to utilize.

When it comes to growing your money, there are a wide variety of investment vehicles and techniques for growing your wealth. Properly investing your money can also provide for an income after you have retired.

Once you have designed your savings and investment plans, being able to manage your money will be important in order to maintain and evolve your financial decisions so that your results will match or exceed your goals.

Social Security

One part of your retirement plan will likely include Social Security income.  This is one of the major financial decisions to make and will have a dramatic impact on your long-term retirement plan.  Should you take Social Security early at age 62?  Should you take Social Security at retirement, at your full retirement age (FRA), or delay your benefits until age 70?

There are a number of factors to consider, including your marital status, other resources, taxation, and life expectancy.  The wrong decision with Social Security could cost you tens of thousands of dollars in benefits.  We can work with you to help you make an informed decision regarding when to take Social Security.

Shepherd Wealth Partners can help with every step of the way keeping your spiritual goals in mind.

Retirement planning is not a one-time event

Just like going to the doctor for a check-up, retirement planning is not a one-time event.  Your plan might have looked great last year but either your circumstances or the stock market has changed, leaving you less certain.

Retirement planning is something that needs to be revisited and re-adjusted as life goes on.  At Shepherd, we regularly update our clients’ retirement plans so you can track your progress and feel confident that you’re still on track to reach your retirement goals.

Retirement Goals

Before you can formulate a plan, it is important to know what you want retirement to look like.

Below is just a short list of questions to think about for your retirement. The more detail you have about what your retirement should be like, the easier it will be to build a plan.

  • Do you want to travel?
  • Where do you want to live?
  • What kind of home do you want to live in?
  • What sort of lifestyle do you want to maintain?

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