Podcast Center
Video Center
Webcasts
Resource Center
Events
August 30, 2024 at 06:43 PM
What You Need to Know
- Clients should start by creating streams of income.
- Protecting assets is critical.
- Remember the taxes.
- If clients do the basics right, then the fun begins.
When your clients quit working permanently, their paycheck stops.
Do you know what the next step is to help them? Tough questions, but lots of strategies, tools, vehicles, and planning you can do.
But where do you start? What is the correct order of operations? What is the best way to help your client? In my opinion, and what I have been using in my practice is the simplest and most effective set of steps to help a client plan for their future.
So, what is retirement planning? It’s a comprehensive process that involves careful consideration of income, protection, tax implications and legacy planning.
Each step plays a crucial role in ensuring financial security and peace of mind during retirement.
With that in mind, let’s take an in-depth look at my four-step retirement planning process.
Important: These steps must be done in this order!
Step 1: Creating Sustainable Income
The foundation of a successful retirement plan begins with creating a reliable income stream.
Without sufficient income, all other aspects of retirement planning become very challenging.
The most important fact you need to know: is how much is being spent each month. Once the baseline is established, you can start using income-producing strategies, tools, and vehicles to create the needed income stream.
Investment strategies: Diversify investments to balance risk and return.
Annuities and pensions: Explore options that provide guaranteed income.
Social Security optimization: Determine the optimal age to begin receiving benefits.
Establishing a stable income ensures financial stability and allows retirees to focus on enjoying their retirement years without financial stress.
Step 2: Protections
Protecting assets and income against unforeseen circumstances is crucial in retirement planning.
Once you have the income streams locked in, now is the time to protect them.
Life insurance: Provides financial security for loved ones in the event of the policyholder’s death.
Long-term care insurance: Covers costs associated with long-term medical care and services.
Health insurance: Ensure comprehensive coverage for healthcare expenses.
By mitigating risks through appropriate insurance coverage, retirees safeguard their financial well-being and maintain peace of mind.
Step 3: Tax Planning
Effective tax planning can significantly affect retirement savings and income distribution. Income and protections are in place.
Jeremy B. Nason, RFC, is the co-founder of the 