PLANNING Your Retirement Income
Frequently Asked Questions
Since retirement income planning is a relatively new discipline, we thought it would be helpful to present and answer some frequently asked questions. This is consistent with our goal at Retirement Income Center to educate our clients about their financial situaton, available planning strategies, and the potential consequences of choosing various courses of action.
What is Retirement Income Planning?
Retirement Income Planning is the process of planning for a predictable income stream from one's assets, that when combined with other sources of income, is designed to meet an individual's or family's financial needs for the duration of retirement.
Why is Retirement Income Planning Important?
It's a fact of life that, unlike our parents' generation who could depend on a monthly pension supplemented by Social Security, most individuals retiring today from the private sector don't receive a pension. Unless your lifestyle allows you to survive solely on Social Security or a comparable monthly benefit if you don't qualify for Social Security, it's necessary for you to create your own pension or retirement paycheck.
Similar to private sector pension plans that were prevalent years ago, your retirement paycheck needs to last for an uncertain period of time, i.e., your lifetime as well as your spouse's lifetime if you're married. The major difference and challenge is that our lifetimes today are generally several years longer than those of our parents and grandparents.
How is Retirement Income Planning Different From Retirement Planning?
Traditional retirement planning as it has been, and continues to be, practiced by most financial planners, focuses on the accumulation and "spending down" of one's assets. This is, in essence, retirement asset planning.
While this type of planning works well in the accumulation stage, it often proves to be inadequate for meeting one's needs when the plan plays out in retirement. As a result of the uncertainty of traditional retirement asset planning as a solution for providing a predictible income stream to match one's financial needs in retirement, retirement income planning was born.
When Should You Do Retirement Income Planning?
Retirement income planning should supplement, and not replace, traditional retirement asset planning at the appropriate stage in one's life in order to provide a total solution. Commencement of retirement income planning ideally should overlap with the latter stages of retirement asset planing.
Retirement income planning is logically and emotionally more appealing than traditional retirement asset planning for individuals who are within ten to fifteen years of retirement. Retirement income planning should be a dynamic process, continuing for the duration of retirement.
What is a Retirement Income Planner?
A Retirement Income Planner is an individual who is professionally trained, licensed, and experienced in developing and managing strategies for creating and optimizing retirement income to meet one's financial needs for the duration of retirement.
Why Should You Choose Retirement Income Center as Your Retirement Income Planner?
Retirement Income Center is an independent holistic retirement income planning firm. We're driven by our fiduciary responsibility to provide advice and solutions that are suitable for you.
We never put a square peg in a round hole. Unlike many financial planning firms that are driven by a single compensation model that dictates solutions recommended to their clients, this isn't the case at Retirement Income Center.
See Robert Klein's article, Is Your Retirement Tied to Your Adviser's Bias?, that was published in The Wall Street Journal on February 21, 2013.
Robert Klein, the founder of Retirement Income Center, is licensed to recommend and implement tried and true retirement income planning, management, and protection strategies that aren't available, and often aren't discussed, in traditional stand-alone investment advisory firms.
Using our retirement income planning expertise, we help our clients maintain their independence and dignity and increase their opportunities to provide for a legacy if that's their goal.