At Riverplace Capital, we help clients plan for their retirement. We consider all special circumstances and have experience managing and preparing for the tax implications of retirement. Once we make a retirement plan together, we then revisit the plan periodically to measure progress. We can help you plan, implement, execute – and ultimately enjoy – a comfortable retirement.
Managing assets through your retirement.
Just as important as developing a retirement plan is to create a strategy to manage retirement assets, not only through the accumulation phase, but also through retirement itself.
Sometimes the instinct during retirement is to play it ultrasafe, perhaps rolling funds into CDs and other “safe” fixed income assets. No one has to tell you what the current returns are on these safe investments. These returns may not be enough to sustain the asset base for as long as needed.
As one depends on their asset base for their livelihood, safety and stability become more important. So the challenge becomes how to provide that safety and still earn sufficient returns to maintain a sufficient income for as long as 25 years or more. Part of the answer is in the investment allocation and part is in the overlay of protection as part of the investing strategy. To learn more about investing in today’s low interest environment, go to our FAQ section or click here.
How Much Money do I need to retire?
An important question for investors saving for their retirement is how much is needed to provide a reliable stream of income?
Each situation is unique but some rules of thumb can be used to guide you. To keep sustaining the pool of retirement assets, one should not withdraw more than 3-5% annually.
Using these parameters, a retiree needs 20 to 30 times the annual income desired from the pool of assets. For example, if you need $100,000 annually and receive $30,000 from Social Security, that leaves $70,000 to provide from other sources. Using the multiple factor suggests that they will need approximately $1,400,000 to $2,100,000, but can change for any number of circumstances. If keeping the asset base in place is not an objective, then the need will not be as large.
We understand that it is also possible that you may be behind in your retirement planning. We can help you develop a plan to get back on track.