Retirement planning

The goal of retirement planning is to ensure that there are sufficient resources for a long retirement which may last 30 years.

Retirement planning has become a critical issue in recent years because baby boomers have reached retirement age, and many of them realize that they have not been well-prepared for this phase of their lives for the following reasons:

  • People are living longer. For people who are 65 today, 50% may live to be more than 85 years old, and 25% may live to be over 90 years old. 
  • If people retire at 65, it means that they need to plan for their retirement for 25 to 35 years. Yet, according to the Federal Reserve, the value of the 401(k) accounts for people aged 60 to 62 constitutes only 25% of what is needed to maintain the household's current living standard in retirement.
  • Besides social security, retirement accounts such as IRAs and 401(k) are the only retirement funds for over 70% of the American workers, as most companies do not offer pensions any more.
  • But IRAs and 401(k) accounts are subject to market conditions, which may cause losses as well as gains.
  • Other factors such as inflation, growing medical costs, and long term care will have impact on the sufficiency of retirement resources for most Americans.

Accordingly, many Americans who are retired or are planning to retire need to review and to reevaluate their retirement assets to determine how far such assets will sustain them through retirement. Such review and evaluation constitute the basis of Plenaris Advisory's Retirement Plan program, which entails reviewing and evaluating clients' retirement resources, including, among others, savings plans such as IRA, Roth IRA, 401(k), 403(b), investment accounts, pension plans, annuities, social security benefits, and home equity.

In addition to retirement resources, the client's existing liabilities and expenses will also be incorporated in the analysis and projection of how well client will succeed financially in retirement, and whether different strategies should be adopted in order to ensure that there will be sufficient resources for a potentially long retirement.

For an article on “Strategies for a Successful Retirement,” click here.
For an article on "Maximize Early Social Security Benefits with Leverage©" click here