Retirement Income That Lasts

Make Sure Your Money Lasts Throughout Your Retirement! 

One of the most prominent passions and areas of focus for the advisors at Trusted Wealth Partners involves helping their clients create plans for a lifetime of income when they are at or nearing retirement.

The fear of outliving your money or losing your standard of living is a valid concern for most of us during retirement.  We want you to feel good about the paycheck you receive from your portfolio in retirement and we also want to see that paycheck last at least as long as you do!  At Trusted Wealth Partners, we are committed to helping you create, implement, and monitor your income for life plan with the following being some of the major challenges we must address:

  • Longevity " Risk"- A couple living to age 65 has a 50% chance of one survivor living to age 92 and a 25% chance of one survivor living to age 97.  For most, we must prepare your finances for the real possibility of requiring 20, 30, or even 40 years of post-retirement income.    
  • Inflation "Risk"- You must account for inflation when building your retirement income plan or your purchasing power will almost certainly be damaged during retirement.  At 3.5% average annual inflation, someone with annual expenses of $50,000 at the beginning of retirement will need over $70,000 per year 10 years into retirement, and close to $100,000 per year 20 years into retirement to pay for those same expenses.
  • Investment Allocation "Risk"- In short, too much equity or stock exposure can make you extra vulnerable when a serious bear market strikes.  In contrast, too much cash & fixed income instruments can make it very difficult for some retirees to keep up with inflation and protect their purchasing power, and may increase the chance they run out of money.  You need a customized plan that strikes the right balance between capital preservation and capital appreciation. 
  • Excess Withdrawal "Risk"- The amount of annual income or withdrawals you receive each year as a percentage of your total savings should be carefully reviewed and constructed based on your particular needs, wants, and circumstances.  We work hard to help our retired clients avoid being forced back to work because of poor planning or overly generous withdrawals in the early years of retirement.   
  • Health Care Expense "Risk"- Planning for medical related expenses in retirement has probably never been filled with so much uncertainty and there are things we have no direct control over. This does not dilute the need to budget for your health expenses in your retirement spending plan.  A variety of research has estimated that the average retired couple in the US spends between 20-30 percent of their income on medical related expenses.  In addition, it is important to understand the risks and rewards to obtaining Long Term Care insurance versus self-insuring for this potential need.  The US Department of Health and Human Services estimates that a person over age 65 has a 70% chance of requiring long term care services at some point.                                         

We believe a customized, well crafted financial game plan can greatly increase the chance you triumph over the above risks and allow you to maintain your dignity and financial independence in retirement.  Click here for additional insight into the income for life strategy. 

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