{"id":41528,"date":"2022-01-13T15:29:43","date_gmt":"2022-01-13T20:29:43","guid":{"rendered":"https:\/\/ilgfinancial.com\/staging\/2370\/?p=41528"},"modified":"2023-08-17T16:04:03","modified_gmt":"2023-08-17T20:04:03","slug":"daves-pick-every-retirement-plan-should-include-these-5-points","status":"publish","type":"post","link":"https:\/\/ilgfinancial.com\/staging\/2370\/daves-pick-every-retirement-plan-should-include-these-5-points\/","title":{"rendered":"Dave&#8217;s Pick: &#8220;Every Retirement Plan Should Include These 5 Points&#8221;"},"content":{"rendered":"<p><em>Article originally published by <a href=\"https:\/\/www.kiplinger.com\/\" target=\"_blank\" rel=\"noopener\">Kiplinger.com<\/a>.<\/em><\/p>\n<p><em>Written by Chris Wilbratte<\/em><\/p>\n<p><img decoding=\"async\" class=\"wp-image-43553 alignright\" src=\"https:\/\/ilgfinancial.com\/staging\/2370\/wp-content\/uploads\/2022\/01\/Five-1024x724.jpg\" alt=\"\" width=\"504\" height=\"356\" srcset=\"https:\/\/ilgfinancial.com\/staging\/2370\/wp-content\/uploads\/2022\/01\/Five-200x141.jpg 200w, https:\/\/ilgfinancial.com\/staging\/2370\/wp-content\/uploads\/2022\/01\/Five-300x212.jpg 300w, https:\/\/ilgfinancial.com\/staging\/2370\/wp-content\/uploads\/2022\/01\/Five-400x283.jpg 400w, https:\/\/ilgfinancial.com\/staging\/2370\/wp-content\/uploads\/2022\/01\/Five-600x424.jpg 600w, https:\/\/ilgfinancial.com\/staging\/2370\/wp-content\/uploads\/2022\/01\/Five-768x543.jpg 768w, https:\/\/ilgfinancial.com\/staging\/2370\/wp-content\/uploads\/2022\/01\/Five-800x565.jpg 800w, https:\/\/ilgfinancial.com\/staging\/2370\/wp-content\/uploads\/2022\/01\/Five-1024x724.jpg 1024w, https:\/\/ilgfinancial.com\/staging\/2370\/wp-content\/uploads\/2022\/01\/Five.jpg 1135w\" sizes=\"(max-width: 504px) 100vw, 504px\" \/>&#8220;Life expectancy is longer today. Interest rates are low, and inflation is creeping back up. Taxes will likely increase in the next few years. Will the stock market continue its steady climb? You can hope, but who knows? Volatility could be part of that long-term equation.<\/p>\n<p>All of these factors create financial uncertainty in the future and make planning for retirement more complex. With that in mind, here are five key components of preparing for retirement:<\/p>\n<h2 class=\"polaris__heading\">1. Get an income plan<\/h2>\n<p>How much money do you need, and where will it come from?<\/p>\n<p>Those are two very important questions. As you enter your prime earning years, it\u2019s important to think ahead about how much income you will need in retirement. Then invest accordingly.<\/p>\n<p>When you are working, investing is fairly straightforward. All your money has to do is grow. When you retire, your money has to provide income, pay taxes, and grow in order to support your lifestyle. Investing becomes much more nuanced and even more challenging once you start taking income.<\/p>\n<p>As you near retirement, here are a few steps to get you started on an income plan:<\/p>\n<ol>\n<li>List all your guaranteed sources of retirement income \u2014 Social Security, pension, an annuity with a guaranteed minimum amount, etc.<\/li>\n<li>List retirement savings and investment accounts, such as a traditional IRA, 401(k), Roth IRA or Roth 401(k).<\/li>\n<li>Ask yourself whether your projected income will cover your expenses and the kind of lifestyle you desire. Remember, a common rule of thumb is that in retirement, most people need to replace roughly 60% to 80% of their pretax, pre-retirement income in order to maintain their lifestyle.<\/li>\n<\/ol>\n<h2 class=\"polaris__heading\">2. Maximize your Social Security income<\/h2>\n<p>To maximize Social Security benefits for you and your spouse, you need to know which of the estimated 567 separate claiming strategies for married couples is right for you. Sometimes, it makes sense to start taking Social Security while letting your nest egg grow. For others, it makes sense to draw down on investments to let your Social Security benefits continue to grow until full retirement age (usually around 67) or to when the\u00a0<a class=\"polaris__link hawk-link-parsed\" href=\"https:\/\/www.kiplinger.com\/retirement\/social-security\/601475\/3-reasons-to-wait-until-70-to-claim-social-security-benefits\">benefit amount peaks (age 70)<\/a>\u00a0before claiming the benefits.<\/p>\n<p>An important note: If you and your spouse were born on Jan. 1, 1954, or earlier and have both reached full retirement age, you can claim spousal benefits and let your own benefits keep growing. At age 70, you can switch to the higher benefit. The strategy is an\u00a0<a class=\"polaris__link hawk-link-parsed\" href=\"https:\/\/www.kiplinger.com\/retirement\/social-security\/602749\/whats-your-strategy-for-maximizing-social-security-benefits\">option called \u201crestricted filing,\u201d<\/a> and it isn\u2019t available for those born on Jan. 2, 1954, or later.&#8221;<\/p>\n<p>Click <a href=\"https:\/\/www.kiplinger.com\/retirement\/retirement-planning\/604034\/every-retirement-plan-should-include-these-5-points\" target=\"_blank\" rel=\"noopener\">here<\/a> to read the remainder of this article.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Article originally published by Kiplinger.com. Written by Chris Wilbratte &#8220;Life expectancy is longer today. Interest rates are low, and inflation is creeping back up. Taxes will likely increase in the next few years. Will the stock market continue its steady climb? You can hope, but who knows? Volatility could be part of that long-term equation. All of these factors create financial uncertainty in the future and make planning for retirement more complex. With that in mind, here are five key components of preparing for retirement: 1. Get an income plan How much money do you need, and where will it come from? Those are two very important questions. As you enter your prime earning years, it\u2019s important to think ahead about how much income you will need in retirement. Then  [&#8230;]<\/p>\n","protected":false},"author":48,"featured_media":43553,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","footnotes":""},"categories":[3259],"tags":[],"class_list":["post-41528","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-retirement-planning-2"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Dave&#039;s Pick: &quot;Every Retirement Plan Should Include These 5 Points&quot; - ILG Financial<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ilgfinancial.com\/daves-pick-every-retirement-plan-should-include-these-5-points\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Dave&#039;s Pick: &quot;Every Retirement Plan Should Include These 5 Points&quot; - ILG Financial\" \/>\n<meta property=\"og:description\" content=\"Article originally published by Kiplinger.com. Written by Chris Wilbratte &#8220;Life expectancy is longer today. Interest rates are low, and inflation is creeping back up. Taxes will likely increase in the next few years. Will the stock market continue its steady climb? You can hope, but who knows? Volatility could be part of that long-term equation. All of these factors create financial uncertainty in the future and make planning for retirement more complex. With that in mind, here are five key components of preparing for retirement: 1. Get an income plan How much money do you need, and where will it come from? Those are two very important questions. As you enter your prime earning years, it\u2019s important to think ahead about how much income you will need in retirement. 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