Retirement planning doesn’t end once you stop working—your needs and wants, the economy and the markets are likely to change over time. As a result, it’s crucial to review your retirement plan on a regular basis. And, the challenge you face is creating a distribution strategy that enables you to withdraw enough money to cover your needs and wants … without prematurely depleting your savings.
The following can help ensure your retirement plan is a sound one.
- Set-up an Account to Manage Expenses
Consider putting enough money into a cash reserve or money market account to cover your expenses for up to two years. This can help avoid having to tap into investments during periods of market volatility.
- Fine-tune Your Budget
Make sure your essential and discretionary expenses are in line to provide you with the lifestyle you planned.
- Develop a Distribution Strategy
Work with your financial advisor to determine a reasonable withdrawal rate, then decide which retirement assets to use and when. Remember, the order in which you withdraw funds can have a significant impact on taxes.
- Decide When to Take Social Security
Generally speaking, the longer you postpone taking benefits (up to age 70), the larger your monthly payments will be.
- Fine-tune Your Asset Allocation
Make any needed adjustments to ensure your portfolio continues to reflect your risk profile and life expectancy.
- Review Your Estate Plan
Make sure your estate plan protects you and your heirs and that it benefits the people and organizations that you intend.
Northwestern Mutual takes a different approach to retirement planning. Rather than simply looking at income needs, Northwestern Mutual takes an offensive and defensive approach— that advises on how to optimize your income while managing the key risks of retirement. The result is a retirement strategy that provides you with a plan that includes both investment and insurance product solutions and factors in additional risk measures, such as longevity and long-term care, designed to provide up to a 90% probability of success. Learn more about our Retirement Strategy in this comprehensive white paper.
To find out how this innovative strategy can benefit you, contact a Northwestern Mutual Representative today.
Northwestern Mutual has a patent application pending on its new retirement allocation strategy planning tool.
A sound retirement income plan may include a blend of the following solutions:
- Life insurance to protect the people who matter most in your life or to use living benefits to supplement your retirement income.
- Long-term care funding to help prepare for the cost of care that an illness, physical or cognitive impairment, or the lasting impact of an accident can require.
- Income annuities to provide a guaranteed stream of income for the rest of your life.
- Mutual funds to help accumulate your retirement savings over time.
- Cash reserve and money market accounts to provide a cushion for emergency needs.