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Retirement Planning

Your financial well-being requires time, the right choices and ongoing management. At Cornerstone Wealth Management, we will work with you to make the right choices by helping you understand where you are and where you want to be.

We know that planning for a successful retirement doesn't happen by chance. It requires a disciplined focused process that is built on your goals, objectives and time frame. The following four steps will be implemented to assist you in this important process:

PRE-Retirement Planning:

Step 1: Determine the cost of YOUR retirement

The first step in this process requires you to determine what the cost of your retirement will be. While this may seem like the impossible question, many of the following factors will help guide us through this process:

  • Your monthly retirement living expenses: A common rule of thumb is somewhere between 70% and 100% of your current annual income prior to retirement.
  • Your retirement age: This is the age that you plan to stop working full time and start withdrawing income from your retirement portfolio.
  • Your life expectancy: This will help define how many years your retirement costs will continue to be incurred.

Step 2: Review your sources of income and cash flow

Once we have established your cost of retirement assumptions, we can begin to look at all of the guaranteed income sources that will be available to you. These income sources may include, among other things:

  • Social Security
  • Pension income
  • Immediate annuity payments
  • Annuity income benefit payments

Step 3: Develop a "Retirement Income Plan"

A "Retirement Income Plan" is designed to help fill in the gap between your guaranteed income streams and your cost of retirement. We will review all of your portfolio assets and create a withdrawal sequence to address your needs. Assets commonly used include but are not limited to:

  • Brokerage accounts
  • Money Market accounts
  • 401-K's, 403-b's, Deferred Compensation, and other employer-sponsored retirement accounts
  • IRA's
  • ROTH IRA's
  • Annuities
  • Rental income
  • Other income

Step 4: Review, Monitor and Modify when needed

If you determine that you are not on track to achieve your retirement objectives, or if somehow get off track during retirement, you will need to consider making some of the following changes:

  • Save more before you retire
  • Spend less before you retire
  • Redefine your retirement age
  • Consider part-time employment during retirement
  • Spend less during retirement
  • Combination of any of the above

POST-Retirement & Distribution Planning:

Thinking about retirement can be daunting! It is difficult to plan for something that may not start for many years and can last multiple decades. Nonetheless, it is very important to create a realistic strategy for funding your retirement that balances current financial needs with your expected future retirement needs.

Click here to view a sample Retirement Plan.

At Cornerstone Wealth Management, we have identified “12 Risks in Retirement” that we consider when building a retirement plan. Our clients find comfort knowing that we take into consideration each of these retirement variables, as it relates to their personal life, and managing these risks may offer a better chance for retirement success. The retirement risks are as follows:

  1. Longevity
  2. Entitlement
  3. Excess withdrawal
  4. Stock market volatility
  5. Lifestyle
  6. Asset allocation
  7. Sequence of portfolio returns
  8. Inflation
  9. Medical expenses
  10. Taxes
  11. Personal or other event
  12. Incapacity

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