FOR IMMEDIATE RELEASE
5 TIPS FOR RETIRMENT SUCCESS
Everyone knows they should plan for retirement-but too many people never get around to doing it. Following are five simple ways to make the process easier, courtesy of the financial planning firm Egan, Berger & Weiner, LLC
Washington, DC, July 2, 2012 – Although many people are concerned about the economy, planning ahead for a secure financial future isn’t something that most people have mastered. And that can be a big mistake, especially during turbulent financial times.
“Planning for retirement is the equivalent of deciding to go on a trip to a place that’s far away and unfamiliar,” says Bryan Beatty, a partner at Egan, Berger & Weiner, LLC, who has been a financial planner for more than two decades. “You need to figure out how much gas and food you’ll need, and which transportation methods you will use. Then you have to chart a route or series of paths you must take to get to your destination without getting stuck at an impassable bridge or diving into a ravine or missing your target entirely and getting lost in a desert. You get the picture.”
Following are some of the tips that Beatty shares with his clients:
1. Understand the risks of longevity and aging. Part of any retirement plan should be to live a healthy and enjoyable life. However, living a long life presents a challenge you may not be fully aware of-longevity risk. The fear of outliving ones assets is one of the highest fears expressed by today’s Baby Boomers. Today the average 64-year-old couple retiring has about a 20 percent chance of one of them living to be older than 95, according to the Single Life Expectancies Based on Annuity 2000 Mortality Table, which can be found here: www.pgcalc.com/pdf/singlelife.pdf.
2. Have clearly defined goals. Start by asking yourself some practical questions:
- When do you want to retire? At 62, 65, 73? There is no correct age; this is a very personal decision.
- What would you like to be doing when you retire? Sailing, golfing, traveling internationally, learning to skydive? Think about your favorite hobby, and set your sights on it. If you don’t have any hobbies that capture your imagination, then get some-because you will be retired for a longer time than you think!
- Where will you live in retirement? At the beach, in Atlanta, San Francisco, or maybe Costa Rica? Since each state, and country, has different tax rules, it is important to think about where you want to live. If such a big decision depends on where your family is, you aren’t alone. For many people, family is a very big part of the healthy later life they envision. What shouldn’t be your answer to this question is, “Wherever I can afford.” That choice means you don’t have a clear goal. Get one.
3. Develop a plan (with some flexibility). Check back to your response to Tip #2. Until you know what you are trying to accomplish, you can’t design a plan to get there. Your plan must include the risks you face in getting to your goals. What stands in your way? You simply need to figure out how to mitigate the potential impact on your plan of all the obstacles you face. This step requires calculating the present value of your goals and determining what the future cost of your goals might be. Once you know the costs and obstacles, map out a strategy to get you safely to your goal.
- 4. Have an Asset Allocation Strategy.* If you think I am speaking a foreign language here, let me explain. An Asset Allocation Strategy helps you balance risk versus reward. The important thing is to know what you want to do with the money you have saved. So ask yourself some more important questions:
- How much risk are you taking now, and is it appropriate given your age and your goals and even your investment experience?
- Do you need to take more risk, or could you get away with less risk? Risk means potential for return, but in the shorter run it means potential for loss.
The key is not just to have a plan, but to truly understand your long-term strategy for accomplishing your goals. That’s how you will best determine why you have the investments you have, and whether or not they are right for you.
- 5. Differentiate between your needs and your wants.* Sometimes people set goals and design a plan-and then when they see what it will take to reach their goals they are overwhelmed. Don’t quit because it seems impossible. Go back and break apart the goals into categories: needs versus wants. You must achieve your needs, and the basics of your plan should contain the steps you’ll have to take to meet your needs. Then build in a plan of alternate action to achieve your “wants.”
About Egan, Berger & Weiner, LLC
Egan, Berger & Weiner, LLC is an independent financial services firm based in Northern Virginia whose associates offer decades of experience in many areas of financial planning. The firm’s team of Certified Financial Planners™ specializes in financial planning and coaching, and helps clients realize their dreams by skillfully navigating them through life’s myriad financial decisions. For additional information about Egan, Berger & Weiner, LLC, visit www.ebwllc.com.
About Bryan D. Beatty
Bryan Beatty is a Certified Financial Planner® and partner at Egan, Berger & Weiner LLC, which is based in Northern Virginia. With more than 20 years of experience in the financial industry, he is a principal of this independent financial services firm, which is experienced in all aspects of investment and retirement planning. An active member of the Financial Planning Association’s Career Development and College Outreach Committees, Beatty is a graduate of the University of Maryland with a BS in Finance. He is a past president of the Finance, Banking and Investment Society, and he is an avid musician who plays guitar and writes music in his spare time, and occasionally plays area venues. Originally from Baltimore, Beatty has lived in Northern Virginia since 1992. For more information, contact Beatty at firstname.lastname@example.org.
_Securities and Investment Advisory Services offered through Voya Financial Advisors, member
SIPC. Egan, Berger & Weiner, LLC is not a subsidiary of nor controlled by Voya Financial Advisors._