Set aside a modest amount of money out of each paycheck, and invest it in a balanced portfolio or fund when the market corrects.
TAKE THE HURRY, SCURRY, AND WORRY OUT OF RETIREMENT PLANNING
HOW MUCH MONEY DO I NEED TO RETIRE?
Together we can figure out how much you need to retire, and stay comfortably retired.
MY RETIREMENT QUIZ
We help you gather and organize the otherwise disparate components involved in the retirement planning process and offer lifelong structure to guide you through accumulating, preserving and enjoying your family wealth.
SUNNY SIDE UP
Sunny Side Up is a simple retirement planning guide packed with tools and insights that anyone can understand, at any age of planning.
THE GROWTH AND INCOME
The Growth and Income Bucket Strategy overcomes many different challenges faced as a retiree when it comes to managing your nest egg.
- Keep pace with inflation.
- Protect your gains as you go.
- Stagger your time horizons.
- Overcome sequence of return risk.
- Take advantage of dollar cost averaging.
- Ensure you will not run out of money.
- Maximize your income potential.
- Help you to control your emotions.
This strategy should be the cornerstone of your plan when determining how to structure your nest egg in retirement.
Financial advisor tip
Even the best-laid plans are subject to change. Your personal goals change, calling for revised structure. The world spins and markets move, calling for disciplined portfolio rebalancing. Outside influences throw you curveballs to catch or avoid, calling for adept adaptations. The point isn’t to avoid making changes, but to make them deliberately and cost-effectively, guided by reason and resolve rather than rash reaction.
Strong emotions are tied to health, family, money, and faith because a lot of emotional value is invested in each one. This causes money to be a major determining factor in many decisions made throughout your life. The pain of losing money is twice as great as the joy of gaining the same, so it is equally as important to manage your emotions, as it is to manage your money. Don’t make irrational decisions which are often made at the wrong time. When it comes to investments, what your emotions tell you to do is often the opposite of what you should do.
Fear lives in all of us and often drives our decisions. These are the three fears we have discovered while working with retirement planning clients:
1. They will run out of money
2. They are not maximizing there earning potential
3. They are not being able to enjoying retirement because they worry about their finances
The Tranel Financial Group retirement planning process, known as The Life Enjoyment Experience™, is designed to answer these three fears.
The twin destroyers of wealth
Taxes and Inflation is your retirement’s worst enemy and if left unattended, will cause you to outlive your money. Over a 20 year period, a 3% inflation rate will cause the cost of living to increase by 80%. Taxes will always go up and play a significant role in your retirement income. By combining inflation and taxes, the destroyer of wealth is created. Good news is these factors are manageable with good retirement planning in place.
Enjoy your life to the fullest by knowing exactly how much money you need to retire comfortably because you only get one shot at cracking open your nest egg.
Your time horizon is one of the most commonly overlooked scenarios because anyone can predict how long of a time horizon they have when planning for college, or the date they retire. Retirement however is until the day you die and no one knows that date. It is very important your retirement plan is designed to outlive you, so you do not outlive it.
Sequence of returns
Sequence of returns plays the largest role in retire- ment because you have no control over where the market and your investments will be, when you re- tire. When you are working and contributing to your 401k, it does not matter when the market is up or down because you are continuing to add money to your account. See the illustration below.
When you retire you will need to withdraw money from your account regardless if the market is up or down. If you retire into a down market and you are withdrawing money, you are compounding your loss. Our retirement planning process is designed to protect you from this very scenario.
Dollar cost averaging
This last section addresses Dollar Cost Averaging. Anyone who has a 401k or is contributing to an IRA, are doing this. It is a powerful way to grow your money over a reasonable period of time. As stock prices fall, you are able to buy more shares. Then when the stock price goes up, you own more stock. With the higher price, you are able to buy less.
We have helped thousands of people retire using our core strategy, known as The Bucket System. This system takes all of the above factors and scenarios into consideration to come up with a sound retirement plan. You are able to retire with dignity and independence knowing your money is going to out live you. To learn more about this system and how it works, sign up for your complimentary meeting today.
Dollar Cost Averaging involves continuous investment in securities regardless of fluctuating price levels of such securities. The investor should consider his/her financial ability to continue to purchase through periods of low price levels.
8 THINGS I WISH I KNEW BEFORE I RETIRED
From Financial professionals Roch Tranel and Tyler Braun comes the retirement how-to book that every aspiring retiree needs. Eight Things I Wish I Knew Before I Retired isn’t just about saving money—it’s a journey into triumphing over a life of purpose and passion. With a down-to-earth approach to the life events that retirees face, this guide invites readers into real-life anecdotes that both entertain and help shape your ideal retirement future. Based on a myriad of client conversations and compiled of valuable lessons, you’ll
- find purpose beyond work,
- rediscover yourself as a retiree,
- achieve debt-free freedom,
- understand your ideal time to retire,
- know how to lay the foundation for financial security,
- and much more!
Retirement isn’t just about how much money will get you through the years ahead. It’s about enjoying the process, embracing a new way of life, and triumphing over your life. And Eight Things I Wish I Knew Before I Retired is the tool you’ll need for this exciting adventure.
Financial advisor tip
Treat a credit card like a debit card. Use the credit card to protect yourself and build benefits, but make sure you pay it off at the end of every month.