Retirement Planning FAQ

Welcome to Cohen Investment Advisors’ Retirement Planning FAQ. We understand that preparing for retirement can be daunting, and we’re here to ease that process with experienced guidance and practical advice. Below, we address some of the most common questions pre-retirees have about planning for their golden years.

What is Retirement Planning?

Retirement planning is determining your retirement income goals and the actions and decisions necessary to achieve them. This involves identifying sources of income, estimating expenses, implementing a savings program, and managing your assets and risks. Planning ahead helps ensure that you can maintain your lifestyle and financial independence once you stop working.

How Much Money Do I Need for Retirement?

The amount you’ll need for retirement depends on various factors, including your desired lifestyle, health care needs, and longevity. A general rule of thumb is to aim for 70-80% of your pre-retirement income annually. Online retirement calculators can provide a personalized estimate based on your specific circumstances.

What Are the Basic Steps for Retirement Planning?

  1. Set Retirement Goals: Determine what age you want to retire and what kind of lifestyle you envision.
  1. Assess Your Current Financial Situation: Review your savings, investments, debts, and expected sources of retirement income.
  1. Develop a Savings Plan: Start contributing to retirement accounts like 401(k)s or IRAs. The earlier you start, the more time your money has to grow.
  1. Consider Investment Strategies: Diversify your portfolio to balance risk and return.
  1. Monitor and Adjust Your Plan: Review your retirement plan regularly and adjust as needed to stay on track.

Why Do You Need Retirement Planning?

Planning for retirement is crucial to ensure financial security during your non-working years. It’s not just about having enough money saved; it’s about creating a robust strategy that addresses various aspects of your future. Without a well-thought-out plan, you risk outliving your savings, facing unforeseen medical expenses without adequate funds, or becoming dependent on family and friends for support.

A comprehensive retirement plan goes beyond merely accumulating savings. It should consider potential healthcare costs, inflation, and lifestyle changes that may arise as you age. Developing a budget for your retirement years, understanding your income sources such as pensions, Social Security, and investments, and factoring in how much you can reasonably withdraw each year are all essential components.

A solid retirement plan can provide peace of mind, enabling you to enjoy your golden years without constant financial worry. It empowers you to make informed decisions about where to live, how to spend your time, and what activities to pursue. This preparation helps you navigate financial uncertainties and allows you to focus on what truly matters: enjoying life to the fullest.

How Can I Make Sure I Don’t Outlive My Savings?

To minimize the risk of outliving your savings, consider the following strategies:

  • Diversify Investments: Spread your assets across various types of investments to reduce risk.
  • Create a Withdrawal Strategy: Calculate a sustainable withdrawal rate to ensure your savings last throughout retirement.

When Can I Get Social Security Retirement Benefits?

You can start receiving Social Security retirement benefits as early as age 62, but claiming early will permanently reduce your monthly benefits. Full retirement age ranges from 66 to 67, depending on your birth year, with benefits increasing if you delay claiming until age 70.

Am I Eligible to Roll Over Some or All of My Traditional IRA Accounts into a Roth IRA?

Yes, you can roll over funds from a traditional IRA to a Roth IRA, but you’ll need to pay taxes on the converted amount. This could be beneficial if you expect to be in a higher tax bracket in retirement. Consult with a financial advisor to determine if a Roth conversion benefits your situation.

Why Choose Cohen Investment Advisors?

At Cohen Investment Advisors, we’re dedicated to providing personalized retirement planning services that cater to your unique needs and goals. Our experienced advisors help you craft a strategy that maximizes your savings, optimizes your investments, and prepares you for a financially secure retirement. Contact us to learn more about how we can assist you in achieving your retirement dreams.

Ready to Take the Next Step?

Don’t wait to start planning for your future. Schedule a consultation with one of our professional advisors today and take the first step towards a secure and fulfilling retirement. Contact our team.