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Are You Ready for Retirement?Submitted by Paul B. Miller, CFP on March 10th, 2016
The word retirement and all the financial responsibilities it encompasses tend to loom over the lives of many Americans as a daunting thought. As a result, preparation for the future often shifts to the backburner. Retirement should be the best time of your life – something you look forward to, a destination you strive to reach. In order to get there, you have to plan for it, and the best time to do so is now. Indian River Financial Group has simplified the process with a free retirement projection, making retirement a reality that you can visualize and approach with confidence.
A 2014 Federal Reserve survey reported that over a third of non-retirees have no retirement savings or pension, with a handful of those older than 45. The same survey found that less than half of those who are funding their retirement are mostly or very confident in their ability to make the right investment choices when managing their retirement savings. Even more alarming are the numbers of respondents who would find themselves in a financial bind in emergency situations and those who have sacrificed necessary medical attention because they could not afford it.
The key to preparing for retirement, no matter your age, is identifying your future financial needs and mapping out a plan to meet those needs based on your current financial situation. Indian River Financial Group’s free retirement projection does exactly that in a matter of seconds. The web-powered app takes into account your personalized retirement savings over time based on your responses to a few general financial questions, resulting in a projection of the duration of your funds for retirement.
You are first prompted to enter the current ages of you and your spouse, your annual household income, monthly expenses, monthly amount saved for retirement, and total amount saved so far. Your results are automatically calculated assuming a retirement age of 65; however, the tool allows you to modify the age at which you plan to retire as well. An easily comprehensible graph is generated that forecasts your savings leading up to retirement, at retirement, and each year during retirement until the age of 90. The graph indicates your current plan in orange and provides a comparable sample plan in blue.
A hypothetical allocation of funds is also broken down into percentages of stocks, bonds, and cash. The current and hypothetical simulations are both based on a fixed return of 6.3%, and any changes between the two are a result of an assumed additional retirement contribution from excess cash flows. Although the projections are not intended to be a recommendation, do not reflect actual investment results, and do not guarantee future results, the tool is a great indicator of the steps necessary for a sustainable retirement.
Keep in mind that the output from the calculator is an analysis based on your input and may vary over time. Also remember that speaking with a financial advisor is the best way to assess what portfolio mix is right for you and to obtain the most accurate assessment of your tax liability. The free retirement projection is a great “retirement checkup” tool to see if you are on track to a bright financial future, so visit Paul Miller Advisor today for a free retirement projection, to see if you’re ready for retirement.