|Once you’ve made these important decisions, you can then calculate just how much money you’ll need - and then you can plan your savings and investment strategies accordingly.
For starters, look at your potential retirement assets, including Social Security payments, distributions from your 401(k) or other employer-sponsored plan, and income from your personal investments.
Factoring in these resources, will you have enough to enjoy a retirement that could last two or three decades? If not, you may need to adjust your portfolio to provide more growth or contribute more to your 401(k) and IRA.
Don’t wait too long to make these types of moves. When retirement arrives, you’ll want to be prepared.
Build Retirement Savings But Don’t Forget Income
Are you between the ages of 55 and 64? If so, you’ll need to continue building your retirement savings - but you also need to think about how to achieve income during your retirement years.
Here are a couple of suggestions for accomplishing these goals: First, contribute as much as you can afford to your 401(k) and your IRA. You may also want to consider an annuity, which can be structured to pay an income stream you can’t outlive.
Next, consider other income-generating strategies. If you are within a few years of retirement, you may want to shift some - but certainly not all - of your growth-oriented investments into income-producing ones. Consequently, you might want to look at some fixed-income vehicles, such as bonds.
By following these suggestions, you can help create the cash flow you need to fully enjoy your “golden years.”
Contact Wendell at Edward Jones www.edwardjones.com.