Your Guide to a Secure Retirement Plan: Expert Insights and Guidance
By Cayucos Wealth
Published On January 3, 2024
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Cayucos Wealth is a financial adviser based in the Central Coast of California whose mission is to guide clients in building a strong financial future that withstands the winds of change. For those seeking to navigate the sometimes-choppy waters of the markets, they make it possible for clients to catch the trade winds and live an adventurous retirement.
Cayucos Wealth is an investment adviser located in Cayucos, CA. This website should not be construed as a solicitation to effect, or attempt to effect, transactions in securities or the rendering of personalized investment or tax advice for compensation, over the internet. Advisory services offered through Sowell Management, a Registered Investment Advisor. Additional information about Sowell Management (CRD# 127145/SEC# 801-63991) is available on the SEC’s website at www.adviserinfo.sec.gov or FINRA’s BrokerCheck at https://brokercheck.finra.org/.
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Retirement is a significant life event. When someone decides to retire without a well-thought-out plan in place, it can lead to a range of challenges and uncertainties. Retirement is a major life transition, and without proper planning, individuals may find themselves facing financial stress, unexpected expenses, and a sense of aimlessness.
Many of us spend years dreaming about our ideal retirement, whether that’s traveling the world, spending more time with family and friends, or pursuing long-lost hobbies. Although planning the financial aspects may not be as thrilling, it’s an essential step to get you where you want to be in your golden years.
Retirement planning can be overwhelming, but with the right financial advisor, it doesn’t have to be. At Cayucos Wealth, we help you navigate uncharted waters like retirement planning.
Retirement Planning Explained
Put simply, retirement planning is determining how much money you’ll need for your dream retirement and how to make it happen. This involves identifying income sources, what you’ll spend your money on, and setting up a savings plan.
The good news is, you can kickstart your retirement planning anytime, and honestly, the sooner you begin, the better. But here’s the thing: it’s never too late to start, even if you’re closer to retirement age.
In our approach to retirement planning, we consider not only your financial aspects but also the non-financial aspects that shape your retirement. Factors like how you envision spending your time in retirement, where you’d prefer to live, and when you aim to quit working completely are all essential elements in creating a well-rounded plan.
Retirement planning also helps you optimize benefits like Social Security and government assistance designed to support retirees. Effective retirement planning helps you build a strong financial foundation granting you peace of mind, knowing you won’t struggle to cover expenses in the years ahead.
“At Cayucos, we help you balance your financial goals. Our expert team understands that achieving your retirement dreams involves more than just setting money aside for the future. It involves carefully aligning your retirement savings with your current financial priorities, ensuring that you can meet your day-to-day expenses, and managing any outstanding debts.”
Key Steps for Creating a Well-Crafted Retirement Plan
At Cayucos, we know retirement plans are not a one-size-fits-all. This personalization takes into account factors such as your net worth, investment portfolio, expected returns, savings rate, and, most importantly, your unique goals.
Here are the steps involved in crafting a personalized retirement plan:
Setting clear retirement goals is a crucial step in crafting a prosperous retirement plan. Once you have your goals in place, you can work backward, calculating the monthly savings needed to achieve your desired income in the future.
Ensuring your retirement plan covers basic living expenses is just the beginning. For many, retirement is about indulging in travel and pursuing hobbies they love. Health care is another vital aspect to consider. We also include factors like inflation, taxes, and the possibility of rising living costs when setting these savings goals.
To get a clear understanding of your savings goal, we’ll ask you a few key questions:
After we have a better understanding of what you want out of retirement, we can start calculating how much you’ll need to save to retire comfortably. This magic number is highly unique to you.
Once you have a savings goal to work towards, remember it’s not set in stone. Be prepared to adapt your retirement plan in response to factors such as debt, increasing expenses, unexpected job loss, or other financial challenges.
One frequently cited financial guideline is the 80% rule, suggesting that you should aim to replace 80% of your pre-retirement income in retirement. However, this is a general guideline, and there are varying opinions. Some experts recommend a more conservative 90%, while others advocate for a leaner 70%. The ideal percentage depends on your individual circumstances and preferences.
Remember to consider your other financial priorities and stick to your budget for day-to-day expenses. The higher your debt, the less you’ll have available to put towards your retirement savings.
At Cayucos, we help you balance your financial goals. Our expert team understands that achieving your retirement dreams involves more than just setting money aside for the future. It involves carefully aligning your retirement savings with your current financial priorities, ensuring that you can meet your day-to-day expenses, and managing any outstanding debts.
When you’ll be able to fully retire depends on your employer programs, Social Security payments, and personal circumstances. While age is indeed just a number, when it comes to retirement and Social Security benefits, it holds significant importance.
Because of this, the normal retirement age is typically 65 or 66. While retiring earlier might be an option you’re considering, it’s important to remember that the sooner you retire, the longer your retirement savings will need to sustain you.
Our team helps you choose your retirement age by factoring in your current situation, future goals, Social Security benefits, employer-sponsored programs, insurance obligations, tax implications, the dynamic economic landscape, and other crucial elements.
Cayucos offers a range of investment options, savings strategies, and effective approaches to boost your retirement income, giving you confidence in your ability to retire comfortably at whatever age you choose.
The Benefits of Working with a Professional Planner
The biggest mistake people make is failing to reevaluate and update their retirement plan regularly. The best advice we can give you is to make it a habit to reassess your retirement plan at least once a year. During these reviews, take a look at how you’re doing and make any necessary tweaks to your strategy. This is why we place a high priority on keeping up with our clients through regular meetings. These meetings are designed to ensure that you’re still on track to achieve your goals, and we use them as opportunities to fine-tune your retirement plan as needed.
At Cayucos Wealth, we pride ourselves on the relationships we have with our clients and the personalization we add to their plan. With years of experience and a true passion for helping others build wealth and financial security, you can trust us to create a plan that optimizes your savings and minimizes the risk of financial challenges down the road.
We genuinely care about your individual journey and are committed to helping you achieve the retirement you deserve. Our team is here to ensure that your retirement plan is not only financially sound but also aligned with your dreams and lifestyle. Our priority is to help you have a comfortable and fulfilling retirement, and we’re excited to learn what that means to you. Reach out today, and let’s get started creating a retirement plan that reflects your unique life.
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright 2023 FMG Suite.
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