This is the single biggest question we get when working with clients approaching retirement. To answer this question we need to know a few things about our clients. First, How much money do you “need” every month to cover your fixed and non-discretionary expenses? Second, How much income will you be receiving from Social Security, pensions, or other fixed income sources? Third, How do you anticipate your expenses changing in retirement? Will your home be paid off? Do you have any other outstanding debts? Do you plan to travel more? Etc. Fourth, how much money will be available to create income at retirement?
Once we have collected all of this information we can create a strategy to help meet your desired income during retirement. If your current savings are not enough to reach your desired income, we will discuss options that can include downsizing, part time work in retirement, working longer, and/or saving more. It is always helpful to begin strategizing early to allow for more time to fix any gaps.
There are many solutions that guarantee clients income for life; we like to utilize these products to create an income floor for our clients. The income floor provides for a family’s “needs”, which they cannot outlive. The growth and income from their other investments can provide for wants. Unfortunately, many people simply have not saved enough to meet their needs.
As always, we recommend working with a Financial Representative to establish a personalized retirement income strategy.
Thrivent Financial
Northeast Ohio Group
Karen Suttman, RICP, FIC, CLTC
9930 Johnnycake Ridge Rd Unit 5C
Concord, Ohio 44060
440-354-5611 or 440-487-6999
This article was prepared by Thrivent Financial with an article from Broadridge Investor Communication Solutions Inc. ©2012
Insurance products issued or offered by Thrivent Financial, the marketing name for Thrivent Financial for Lutherans, Appleton, WI. Not all products are available in all states. Securities and investment advisory services are offered through Thrivent Investment Management Inc., 625 Fourth Ave. S., Minneapolis, MN 55415, a FINRA and SIPC member and a wholly owned subsidiary of Thrivent. Thrivent Financial representatives are registered representatives of Thrivent Investment Management Inc. They are also licensed insurance agents/producers of Thrivent. For additional important information, visit Thrivent.com/disclosures.
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