EWA of CT, formally Shoreline Financial Advisors, believes that goal-based planning can help you explore the opportunities and possibilities you have in retirement. When it comes to planning for a fulfilling retirement, each of us has a unique perspective, and a unique set of expectations.
- Traveling and other personal exploration activities
- Buying a second home or relocating
- Being able to give to cause
- Starting a new business
- Passing a legacy on to the next generation
7 Questions to Ask Yourself as You Think About Retirement
Retirement should be a time of excitement and hope. Planning for retirement involves deep conversations about your goals. Further, there are many questions that you may need to explore. Below, please scroll through the slider to help you think about the issues you may face in retirement. As always, we are here to help you on your journey.
Because we are living longer, we need to plan for a longer retirement. Inflation will:
- Decrease the purchasing power of your portfolio.
- Increase the prices of the goods and services that you buy.
To maintain the lifestyle you enjoy today, you should plan for a portfolio that will be larger in 30 years.
Contrary to what many people assume, you should not plan on spending all of the annual returns that your investment portfolio generates.
To keep pace with inflation and afford the same lifestyle, you will need to continue to grow your portfolio to pay for future spending.
First, we will look at three different withdrawal amounts over a 25-year timespan. To keep things simple, we will assume a well-diversified portfolio that is invested 60% in stocks or equities and 40% in bonds or fixed income, earning a long-term return of 7%.
Let’s look at different retirement lengths and assume a $50,000 annual withdrawal. It is important to understand how long your assets may need to provide for you and how increasing life expectancies can impact your portfolio.
Finally, we vary the assumed rate of return by changing the asset allocation. This involves increasing or decreasing the allocation to higher risk/higher return asset classes. All other assumptions are held constant. Increased return comes with an increase in the variability of those returns.
Retirement is different for everyone. Our software lets you pick your goals. You’ll need healthcare. We can help estimate what it will cost. Maybe a big trip, updating your kitchen, helping your grandkids with college.
You can easily set your goals by a simple drag and drop of your computer mouse.
We are a fiduciary. We offer independent advice with no hidden charges, incentive structures, or third-party payments of any kind. Ready to take the next step? Let’s talk about how we can get you there.