The Landings & Bay Colony

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Now that our careful retirement planning is
close to paying off, it’s important to make sure
your assets can last as long as you need them.
Even if you have considerable assets saved for
retirement, it’s wise to apply a thoughtful
strategy around which funds you draw down
and how quickly you do so. We thought this
information about managing your income
during retirement might be helpful.

Retirement challenges

As retirement approaches and your preparations proceed, it’s important to consider
any potential obstacles to a secure financial future. Of course, you cannot control
external factors such as inflation or market volatility, but you can prepare for them.
For one thing, Americans in general are living longer, so your assets simply need to
last longer.1

In addition, markets remain volatile and retirees are particularly susceptible to these
ups and downs. If a major market correction occurs during your retirement, the
decline in portfolio value could force you to withdraw less from your accounts or risk
running out of assets later.

Finally, inflation can reduce the value of your savings, forcing you to withdraw more
from your accounts to maintain purchasing power and ultimately increasing the chance
of outliving your assets. While inflation has been low in recent years, many experts
expect it to climb in the decade ahead. And even at a 3% rate, your assets would have
to increase by more than 80% over a 20-year period to maintain today’s purchasing
power. Note that healthcare inflation runs at a rate nearly double that of general
inflation.2

Know your retirement spending needs

The first step in planning for retirement is to know how much you’ll need and how
you’ll spend it. When talking with clients about spending, we try to think of all costs
fitting into one of three categories:

Planning Matters

Creating A Retirement Income Plan

You Can Rely On

Darren Blake

The Blake Group