Principles Of Retirement

When you plan with principles, you increase your probability of success. 

The Principle Of Income

The Principle Of Income suggests that you only draw retirement income from accounts that have not received significant losses.

For example, if you draw retirement income from an account that has been flat for a while or made money over the last year, you’re probably fine to use it as a source of income.

However, if your assets have taken a recent hit, like a 20% loss or so, according to this principle, you’ll want to take income from other sources until the accounts can recover. If you are drawing income from an account that is losing money, that account will be depleted much more quickly, making it difficult to recover. This principle is known throughout the industry as sequence of return risk

The Principle Of Diversification

The Principle Of Diversification suggests that you diversify your assets by objectives, like taking income, minimizing taxes, leaving a legacy, buying a boat, or whatever else you may want in retirement.

Up to this point, you have probably only experienced risk diversification with the objective of growth. Makes sense since you were in the accumulation phase of your life. Once you retire, you’ll have other objectives that must be addressed. Your accumulation strategy may fall apart if you don’t diversify your assets and investments by objectives.

The Principle Of Planning

The Principle Of Planning suggests that pre-determined guidelines increase your probability of future success. Winging your retirement is a great way to run out of money early. 

If markets go down and you have a pre-determined plan on what to do, those down markets are easier the bear. If a spouse passes and you know what to do, financially speaking, it makes a difficult transition a little easier to handle.

Don’t make decisions in the moment. That is how many emotional decisions are made, which can lead to compromising the bigger picture. 

Principles Of Retirement – The Book

Let’s face it: some retirements fail. Why? When you retire, the rules change.

If you’re tired of confusing advice and are searching for retirement strategies that work for you, you’ve come to the right place. Join Mike Decker as he breaks down the ins and outs of how to put together your retirement, built on the principles he’s cultivated over the past decade in the financial world. He understands the problems plaguing retirees and the financial planning industry today and seeks to rectify this by providing straightforward guidelines for a successful retirement.

Decker walks readers through the process of building their own retirement with simple instruction. This is not a technical book. This book is for those seeking to take control of their retirement that can weather market up and downs and the changes that inevitably occur during the post-work years. From dealing with the fear of running out of money to Social Security to tax minimization, Principles of Retirement is a must-read for anyone wanting to retire their way.

Aspects Of Retirement Planning To Consider

Retirement Planning is complicated. We are here to shed a light on the different areas you may need to consider as you put your plan together, whether that is with us or someone else. 

Income Planning

How much do you need, net of tax, to be able to retire? If markets go down, can you still afford that lifestyle?

Investment Planning

Are you still diversified for growth, like when you held a job and had a paycheck coming in? If so, it may be time to consider adjusting your portfolio and investments.

Healthcare Planning

Can you afford the cost of declining health? Some will self-insure while others may choose other options. What will you do?

Tax Planning

If taxes are relatively low and national debt is historically high, do you believe taxes will go up? If so, do you have a plan to anticipate the possible change? 

Estate Planning

Do you have an updated trust? A great way to ruin family relationships is to leave it to them to figure it out. Are your documents in order?

Retirement Overview

Do you have a retirement plan that you understand? It should include income, investment, healthcare, tax, and estate planning.

*Diversification does not ensure a profit or guarantee against losses.

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