Retirement is something we all hope will last for years. Yet most of us spend hardly any time planning for it.
At RINA, we provide focused, tailored retirement planning services that are built around your individual goals and objectives.
The basic objective of our financial analyses is to determine if your projected cash flow will cover projected expenses. We then fit this analysis into an overall plan that may include succession planning for business owners, estate and gift planning.
It’s never too early to start your retirement planning. Starting early includes setting aside cash along with financial planning. For example, if you put $500 per month into a Section 401(k) plan beginning at age 25, you will have $1,000,724 by the time you reach age 65, assuming a growth rate of 6%. If you wait to start your deferral of $500 per month at age 55, the amount at age 65 will be $82,349. For the 55 year-old to have the same amount as the 25 year-old at age 65, the monthly contribution must be $6,076.
Your projected cash flow is the centerpiece of our financial analyses. The minimum goal is to have your projected sources of cash equal to or exceed your projected expenses.
Projected sources of cash include:
- Income from employment or self-employment
- Pension and other retirement pay, including the required distributions from company retirement accounts and IRAs
- Social security benefits
- Projected income from investments in securities and annuities
- Projected income from rental real estate or other investments
Projected expenses include:
- Living expenses: food and lodging, etc
- Medical expenses: insurance and payments to medical providers
- Commitments to family members, religious and other charitable organizations.
Other factors to consider in the financial analysis:
- Cost of living increases
- Life expectancy
- Life changes and changes in lifestyle
The financial aspects of the retirement plan should be reviewed periodically and as life changes occur. Retirement planning is the first step in developing an overall financial plan that will include other services provided by RINA, and services provided by others including investments, insurance and the law. RINA can be the adviser who helps you work with other advisers to formulate and monitor your retirement planning.