When discussing retirement, there are dozens of questions you can ask yourself. For example, do you want immediate access to your money or do you want guaranteed income over your lifetime (keep in mind guarantees are based on the financial strength and claims paying ability of the issuing insurance company)? Are you concerned about how long your retirement savings will last? Do you want to harness the market to potentially grow your retirement assets or prefer to be more conservative?
Thrivent Financial believes working through these questions with a financial professional is the first step towards building a more confident retirement. There is no right or wrong answer to these questions. It’s about finding a strategy that works for you and your loved ones so you can build the retirement you’ve always dreamed of.
Having a solid framework for creating and protecting your income in retirement is essential to your success. There are three main factors to consider when creating a retirement income strategy, including:
Growth - Think about your ability to potentially grow assets to help protect against inflation, a key issue when saving for long term needs. You should also consider strategies to replenish income sources by periodically harvesting gains when market conditions are appropriate.
Guarantees - Consider a strategy with a guaranteed income stream. This will help cover essential day-to-day expenses that you would have a hard time adjusting or reducing.
Near Term - Have a pool of money for immediate enjoyment and expenses. This can be used to cover discretionary expenses with a buffer of accessible funds. This is where your “fun money” can come from for travel, entertainment, hobbies and gifts.
Finding the right balance for your risk tolerance and lifestyle choices is essential. The asset mix you choose as you allocate your retirement assets can be customized to your specifications. Whether you want the protection of guaranteed income or would prefer to grow assets aggressively, finding the right allocation for you is most important.
Retirement assets are an important part of a healthy financial strategy. Make sure you think about how you will spend the money you’ve worked so hard to save.
This article was prepared by Thrivent Financial for use by local area representative Wealth Advisor Brad A. Nelson, CFP®, RICP®, CLTC®, FIC, Financial Associate Ann M. Backes and Financial Consultant Benjamin D. Weerts, FIC, CLTC®, RICP®, at 32 NW 2nd Street, Grand Rapids, MN 55744, 218-326-0068.