Putting Your Retirement on Firm Footing

Zeroing In on Change

Today, more than ever, planning for retirement is a necessity. Proper planning and follow-through can help you avoid shortfalls in meeting your income needs and help assure you of a smooth, secure transition from the world of work to the world of retirement.

Planning ahead means setting goals and deciding how they will be met, within the framework of a changing financial picture. Many retirees find themselves torn between balancing a satisfying lifestyle with one that lacks many of the comforts that make life easier. In the absence of a solid financial foundation, you may be faced with some hard choices over the course of your retirement years. A successful financial plan carried out faithfully will help soften many of them.

Unfortunately, time is a luxury only available to younger individuals. Therefore, as retirement approaches, there are some key points you should take into consideration in order to best position yourself for an enjoyable retirement:


(Mr. Wallace holds NASD Series 7 (General Securities) licenses and Group I and IV Life-Health Insurance Licenses. He is a Registered Representative of MML Investors Securities, Inc., an Investment Advisor Representative of Spectrum Strategies, LLC, and an Investment Advisor Representative and Registered Representative of MML Investors Services, Inc. You may reach him @ ejwallace@finsvcs.com or visit his website at spectrumstrategiesllc.com.)

Building Foundations

Certainly, younger individuals may be able to afford taking greater risk with more aggressive investments. However, regardless of your age, you should always make a concerted effort to maximize contributions to your 401(k), IRA, or other retirement savings vehicle.

In addition, it may be more prudent to gradually shift your retirement assets to more conservative, income-producing investments as you approach retirement. An asset preservation strategy may be especially difficult for those who begin retirement planning later in life. In such situations, it is particularly critical for investments not to exceed or under-exceed personal risk tolerance.

The Longevity Game

The culture of retirement is changing. It's not uncommon for someone to spend one-third of his or her lifetime in retirement. Therefore, your retirement assets will need to last longer and be able to accommodate cost-of-living increases. As a result, it may be necessary for some retirees to return to the workforce (perhaps consulting on a part-time basis) in order to help supplement their retirement income.

Main Street or Park Avenue?

Some individuals are under the impression that they will be able to live the same type of lifestyle they enjoyed during their working years — and some will. However, it's important to keep things in proper perspective. In reality, you may have to downscale living arrangements and unnecessary expenditures in order to ensure your retirement assets will be sufficient over a long period of time.

Regardless of how close you are to retirement, it is important to keep realistic goals and expectations. Factors such as how much you have already accumulated, or how far financially you are from your objective, should play a key role in determining your course of action. A review with your financial professional can be a good first step to ensure that you have chosen the best path to fulfill your retirement lifestyle.

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