Are your 401k & Roth IRA's ready for retirement? 3 Questions to ask!
WRITTEN BY: Gideon Drucker, CFP® AIF® ECA
Because we work mostly with high income earning mid-career professionals, most of our clients have been working for at least 15-20 years.
(Let us know if that's not you...we always want to make sure that you're receiving the most relevant newsletters :)
You’ve spent the last 20+ years building your career, growing your income, and building up your investments & net worth.
Congratulations! But, here’s my question for you: Are the investment & tax decisions you're making as you climb up the mountain, the same ones that will help you get back down in 10-15 years (or sooner!)?
Spoiler: How could they be? We are looking at two entirely different functions your money needs to achieve.
Here’s what we've found to be true:
"What got you here won't get you there..."
In other words:
401(k) plans, 403(b)’s, and SEP IRA’s are fantastic accumulation vehicles….they do a great job of helping mid-career professionals save money and grow their net worth for an undetermined future point.
401(k) plans, 403(b)’s, and SEP IRA’s, if left unchanged, can be terrible de-accumulation vehicles…. they simply cannot put pre-retirees in an appropriate position to start living off their accumulated assets as they will need to in order to be comfortable during their retirement years.
It’s just not their purpose.
And that’s exactly why our team designs Financial Life Plans® so that you can understand how your money needs to work for you now...and how that money needs to evolve with your life & goals as you get closer and closer to retirement.
The FLP® that we can create together will provide you with an actionable road map to redesign your financial plan for the next phase of your life. We will look to build an investment & cash flow strategy that looks to solve YOUR most important questions, like:
1. When can you expect to retire? (And just as importantly, when can you NOT?)
2. How much income will you will need to generate each year once you enter retirement?
3. How you can stay comfortably retired during each of the (typically separate) 3 stages of retirement?
The investment planning you do now during your working years is primarily about growing your investment principle. In other words, you're focused on "climbing" the proverbial mountain while your accumulated assets kept allowing you to reach a higher and higher peak for yourself.
Investment planning during your retirement years ought to look very different, as it is intended to grow your investment income AND outpace inflation, while you "descend" the mountain with as much water, food, and rest as possible (to continue the metaphor).
I spend every day designing Financial Life Plans® helping mid-career professionals prepare themselves to get "down the mountain" one day. We help them navigate these strategies and important decisions: Helping individuals like you to turn your accumulated assets into an actionable retirement distribution plan that will properly prepare you for what's next.
It is NEVER to early to understand what you will need to do this.
Because here's what I promise you: you do not want to FIRST start having these conversations in 10 years when you only have a few quick years to get it "right." The more time you give yourself to plan for your retirement agenda, the more margin of error you create for yourself and the greater likelihood you have of actually having enough time to make the necessary changes.
This is why we focus on working with mid-career professionals...we want to help you on your journey while you have enough time for us to intentionally & purposefully build your retirement roadmap...the way that you want!
If you’re interested in exploring these concepts further, simply reply to this email or click here to schedule your free "Right Fit" 15-minute call and we can chat about your current financial situation, where you're looking to go, and if we're the right fit to help you get there!