The thought of saving enough money to last through your lifetime can be daunting. With the unknowns of the future and how long your money needs to last, it’s important to start planning early. Fidelity offers advice on 3 keys to your retirement income plan and this includes a diverse portfolio. It’s important to build income plans that have guaranteed income, growth potential, and flexibility.
- Use Guaranteed Income to help pay for your essential expenses. When creating your plan, the most important aspect is to ensure your day-to-day expenses such as housing, food, and healthcare are covered by your lifetime guaranteed income. The three main sources of guaranteed income include Social Security, pension plans, and fixed income annuities.
- Seek growth potential to meet your long-term needs. Another important aspect of your plan is including investments with growth potential to keep up with inflation in retirement. Consider a mix of investments that will take into account your timeline, financial situation, and tolerance for market shifts. You will want to use this source to pay for the fun things in retirement such as travel, hobbies, etc. Using this strategy will allow you to cut back on some of these expenses in times of market fluctuations.
- Be flexible and refine your income plan over time. Inevitably, life will throw you some curveballs along the way so it’s important to ensure that your plan can be adjusted as things change. This is why it’s important to have income that is combined from multiple sources to create diversified income. These incomes can work together to reduce the effects of inflation and market volatility.
For the full Fidelity article on the Three Keys to Retirement Income, click here.
To begin developing your retirement plan, contact CAPTRUST for unbiased investment advice. Fidelity and TIAA are also available for one-on-one appointments to discuss and develop your retirement plan.
