According to a recent survey1, one in three workers are not confident they will have enough money to retire. Having a comprehensive retirement plan is crucial. Here are three key areas that are critical for long-term success in retirement.

  1. Market timing

We need to understand the impact of the timing of market returns. When we are in our working years and saving and accumulating money, the ups and downs of the stock market are not as impactful. Market timing is just not as important in terms of when are the good years and when are the bad years, because over time the stock market does well. In retirement, that completely gets flipped, and the timing of when there are good and bad years becomes critical. The problem is we don’t have any control over our market timing when we decide to retire. The first five to ten years of retirement can have an overwhelming impact on our long-term retirement income. You need to understand the implications of timing and create a plan so you are not affected by market timing when you retire.

  1. Structuring your income plan

This is tied in directly to market timing. What if the markets are down in the early years of retirement? You don’t want to have to sell off investments for income while the stock market is down. You will end up compounding your losses. Structuring an income plan that doesn’t depend on stock market gains or losses in the short-term is critical.

  1. Tax planning

In the future, tax planning is going to be more and more important. You have more control over your income taxes in retirement than in any other time in your life. For most, income taxes are the largest expense you have in your lifetime. Tax planning is looking forward and is being intentional about future income taxes.

Setting yourself up for success in retirement starts with a good comprehensive retirement plan. At Brogan Financial, we customize retirement plans to meet the needs of each individual client. What worked for your neighbor, your friend, or even your sibling might not be what will work best for you. Give us a call or fill out this form to schedule your complimentary retirement analysis today.

[1] https://www.ebri.org/docs/default-source/rcs/2019-rcs/2019-rcs-short-report.pdf