What is Retirement Planning?
Retirement planning encompasses many strategies and solutions, but ultimately it has one goal: to accumulate a source of income for retirement. This last part is a growing concern for many Americans, as things like taxes, inflation, market volatility, and constrained earning power challenge achieving sustainable retirement resources. Retirement planning begins with assessing your readiness to retire, based on your ideal lifestyle and retirement age. From this, strategies are designed to achieve your unique retirement goals and needs.
Although there are many ways to plan for retirement, retirement planning has three basic phases: accumulation, preservation, and distribution. During the accumulation phase, you allocate funds toward retirement through saving or financial products such as life insurance, annuities, or employer-sponsored retirement accounts. In the preservation phase, you work to maximize your accumulated wealth and prepare for distribution. Within the distribution phase, you start depending on your retirement resources.
Throughout all three phases, it is critical to evaluate the performance of your overall financial plan. There are many different strategies that work to enhance each phase and ensure that you see the most out of your hard-earned retirement money.
Because retirement planning is so incredibly important, it is crucial to seek out professional help. Going at it alone may lead to irrevocable mistakes, errors that cost you money and affect a long-lasting retirement. Cambridge Financial Group is your resource for all of your retirement needs. No matter what phase of retirement planning you are currently in, we can provide solutions that help you achieve independence in retirement.