The investment plan for retirement use to be fairly simple. As retirement approached, advisers use to recommend that clients reallocate their equity portfolios in favor of fixed income. The theory was that risk should be removed from the portfolio and the retiree will need greater income now that their work days have come to an end. It was conventional thinking that the retiree should eliminate market risk in favor assets with less volatility such as bonds, CD’s, annuities, etc. This conventional wisdom made sense when the average lifetime in retirement was about five years.
Times have changed and it is now a common occurrence that clients can anticipate a retirement horizon of as much as thirty years. The average lifetime is now 84.3 for men and 86.6 for women as calculated by The Social Security Administration. Interest rates over the last ten years have been at historical lows so yields on conventional retirement portfolios will fall far short of the cash flow needs of many retirees. At Delta Wealth Management we want to assist you with balancing your objectives while not taking undue risk to accomplish those goals. There are several phases to retirement planning. They include:
- Pre-retirement calculation of income scenarios given different investment allocations.
- Explore options as to altering portfolios to enhance retirement income.
- Analysis as to whether to activate Social Security at 62, 66, or some later date.
- Assistance with consolidation of Rollover Accounts from various custodians.