John Labunski is a financial advisor and the CEO of a reputable investment company. One topic he must tackle daily with various clients is how to plan for retirement. Failing to have the right plan in place can be disastrous. There are a few things that people can do in anticipation of their retirement. First of all, make sure to save as much as possible while you are still working. Sock away any bonuses, extra tax money, etc.
Assess your health and longevity. Are you a smoker? Do you have questionable health now? These factors can help you determine how long your money needs to stretch. It can also help you plan for medical expenses that may arise.
Once you’ve calculated your life expectancy, you can gauge how much you’ll be able to withdraw from your portfolio without going through your entire savings. Most experts agree that you can take out 4% of your balance in year one of retirement, if your life expectancy is 25 years.
As an extra insurance to your current portfolio, put some of your portfolio in a deferred-income annuity, also known as a longevity annuity. These annuities differ from other annuities, which pay out right away. They take about 15 or 20 years or more, to mature. It can be thought of as old age insurance.
John Labunski provides full financial, wealth and retirement services to all his radio listeners and potential clients. He wants to m
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