An investment plan can serve as a tool to help you create a calculated and dynamic retirement income strategy. Calculated because it takes into account important financial aspects of your life like cash flow needs, investment horizon, and risk tolerance. Dynamic because it can be adjusted as your family and financial needs change.
Retirement Income Needs Shape Your Investment Plan
Let’s say you are 65, in good health, and have $1,000,000 saved with a long-term goal of growth because you want to pass along assets to heirs. You’ll also need $1,000 of monthly income from the portfolio starting at age 70, to supplement Social Security retirement benefits.
An investment plan can show you various scenarios for you to consider. Will you have enough money if you allocate your portfolio to 70% equities and 30% bonds and live to age 90? How about with a potentially less risky 50% equity / 50% fixed income portfolio? Would it make sense to delay your retirement income needs (if possible) to age 75? How would changing your monthly retirement income need to $2,000 alter the outcomes?
Your Investment Plan Should Change With You
Whether it’s a newfound desire to travel the world, a health-related expense, or an unexpected event, changes to your financial life should trigger changes to your investment plan. When these changes occur, it’s important to tell your financial advisor so they can incorporate the resulting change in income needs, expenses and even time horizon into your investment plan. In some cases, your shifting needs can result in changes to your asset allocation, designed to keep your portfolio on track.
WrapManager Can Help You Create a Retirement Income Strategy
At WrapManager, we can build a calculated and dynamic investment plan with you. Having a conversation and building a framework for your next steps won’t cost you anything but a little time, so give us a call today at 1-800-541-7774, or click here to get started.
