The most recent trend in retirement is to focus on retirement income. However, many conversations revolve around believing that only one reputable retirement strategy exists. In this new Fiduciary Training, we review data and research explaining the many facets of retirement planning and the multiple avenues one can take to achieve monetary prosperity.
Approximately 10,000 baby boomers will turn 65 in the U.S. daily for the next ten years. By 2030, all baby boomers will be 65, accounting for over 20% of the U.S. population. These numbers highlight the necessity to understand the unique needs of this age group:
- Retirement can be unpredictable and overwhelming.
- Inflation, future expenses, health issues, and life expectancy are difficult to anticipate.
- Lifetime Income can aid the adjustment period and address the forthcoming financial challenges.
What is Lifetime Income?
Lifetime Income is a crucial concept representing a financial strategy or product designed to create a continuous and dependable income stream through a person’s entire retirement period. Options include Social Security, pension plans, annuities, and self-managed portfolios.
The Problem at Hand
People often question if there is one optimal retirement solution for all circumstances. This is unrealistic, as the “right” answer depends on the client, not the advisor. Also, whom you ask, whether investment advisors, insurance companies and brokers, or other opinion sources, plays a role. Additionally, pursuing specific wealth and flexibility levels can be achieved by deciding what returns you value most in a particular retirement plan strategy, and there are many to choose from.
What is the RISA™ Matrix, and How Can it Help?
The RISA™ Matrix is an analytical device for defining risk levels. It plots the likelihood of risk against consequences of different severity levels and provides a basic framework for retirees to express preferences regarding their desired retirement income strategy. The categories are listed in a four-box matrix, inferring no superior retirement plan solution exists.
Multnomah Group is a registered investment adviser, registered with the Securities and Exchange Commission. Any information contained herein or on Multnomah Group’s website is provided for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Multnomah Group does not provide legal or tax advice.