The 4 P’s Of Retirement
The 4 P’s Of Retirement
Retirement is viewed as a major life event, and it’s a GOOD one. Although this can be something to look forward to throughout your whole life in the workforce, without the proper planning it is a bit tedious. Most people often think there is all the time in the world to plan so it is no big deal.. until all of a sudden you wake up and think how you really wish you would have planned a little bit better. When it comes to planning your retirement, the younger the better.
So you might be wondering, where do I start? Well, lets look at the Four P’s of the planning process.
Protection: While planning, constantly think about your most important assets and what you want to protect. Balance, income, estate, legacy? Maybe all of the above. This P is a major part of the overall planning process.
Production of an investment return: Income, where is my income going to come from in retirement and will it be enough to sustain my lifestyle? What is your expectation of growth? Of course, the expectation of growth is going to differ from person to person. Also take into consideration that as we age, our expenses tend to go up, so it is crucial to take the time and do the math to make sure the amount coming in and the amount going out aren’t going to drain your account too fast.
Preservation: If we preserve the balance for as long as possible, then the income or ability to draw income is going to preserved for a longer period of time as well. This part can be kind of difficult early in your life when the urge arises to buy a new car, or a new boat, or take an extravagant vacation around the world. The less money that is spent early in life and is preserved, the more your earnings will compound in the years to come.
Passing on the legacy: Although it may be hard to think about, figuring out what will happen to the remainder of retirement savings after you pass away is the 4th P. Will it go towards your kids, or a charity? Figuring out these details sooner rather than later will help provide confidence.
Retirement planning is always a hot topic, if you have any questions you can contact The Resource Center anytime at 417-882-1800.
We are an independent firm helping individuals create retirement strategies using a variety of insurance and investment products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic financial planning strategies and should not be construed as financial advice. All investments are subject to risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.
The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions.
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