The 2016 elections have certainly brought about some changes in the political landscape. One thing hasn’t changed however—an ageing population that is moving toward retirement. Baby boomers began turning 65 in 2011 and their number is increasing by about 10,000 per day. In 2017, the leading edge of the boom will turn 70 (complete with required minimum distribution requirements from retirement accounts). Considering this trend, we are beginning a series of postings on navigating the road to (and through) retirement.

First, we’ll look at some of the possibilities facing individuals as they approach retirement. Will older Americans continue working? How long is “retirement”? What about Social Security? How should one plan for spending and inflation?

Then, we’ll look at some of the “pre-retirement” planning that should be done. How much should one save for retirement? Should it be done in company savings plans? IRAs (traditional or Roth)

Spending in retirement is a key factor. How much is “too much” for investment withdrawals? Tax management (for investment withdrawals, taxes paid (income-federal and state; and local (personal property, real property) are no minor consideration. Health care (and long term care) costs are also an item of uncertainty and concern.

Finally, how does one pay for retirement? The reduction in defined pension plans and replacement with 401k plans has put the investment risk on the retiree. Quality of retirement is, in large part, how successful one is in managing his/her financial resources. We will begin some discussions on these topics.

“Plan your work, then work your plan.” That is the basis of financial planning that we at Paragon Financial Advisors assist our clients in doing. Please call us to discuss your specific circumstances, and stand by for more discussions on navigating the retirement road. Paragon Financial Advisors is a fee-only registered investment advisory company located in College Station, Texas.  We offer financial planning and investment management services to our clients. 

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