How do we recreate the reliable pension of yesteryear ?

Times have changed , most of us don ’ t generally stay with one employer for life and get a nice pension at the end . We need to save for retirement ourselves now , and most of our paths to this goal are complex and unique .

CFP ®, AAMS ®, RICP ®

FOUNDER / PRINCIPAL FINANCIAL ADVISOR , RJFS

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Starting with the end game in mind is an excellent first step . What do I mean by that ? Where is the finish line to achieve work optional status or retirement ? What will you be doing ? Please don ’ t be afraid to be generous here ; this is your life , and it should be on your own terms . Will you volunteer locally or abroad ? Treat your grandchildren and relatives to family vacations ? Perhaps you ’ ll start writing that book with the time you have . Or perhaps work on your health by reducing stress and getting into shape . There are a myriad of things you can envision doing and everyone is unique !

Once you ’ ve created a vision and a timeframe is established , we will want to “ dollarize ” what this lifestyle will cost . This process is key and utilization of a cash flow analysis ( and / or forecast ) will help in this step of the analysis . Interestingly , the process will reveal how much is needed to sustain your intended lifestyle . When is enough , enough ? And when you do have enough , then perhaps it is time to protect what you have . If you fall short , you can look at paths forward to help get you there sooner rather than later ?

Now it ’ s time to live your best life possible .

Since most of us do not have the luxury of a nice pension , we need to recreate the stream of income ourselves . One of the niceties of a pension is , in most cases , protected income . The same can be done even if you don ’ t have a pension . Coordinating the starting point of social security with all your different retirement assets should be analyzed , as well as calculating how to maximize the amount of social security so as to rely less on your wealth .

Another often overlooked form of creating a potential dependable income stream is the use of annuities . The great thing is there are many different options you can utilize . It ’ s just a matter of figuring out how they fit into your holistic work optional or retirement financial picture ?

We should also be mindful of the minimization of taxes on your money . Less tax translates to more wealth you can use to generate income . This in turn can help further protect your wealth and income stream from unwelcomed changes in the tax law .

From proper timing of social security , potential use of annuities to tax minimization of income , etc there are a multitude of strategies which can be deployed to help recreate the pension income of yesteryear and help you be work optional .

Are you there yet ?

Raymond James does not provide tax or legal services . Please discuss these matters with the appropriate professional . Investments mentioned may not be suitable for all investors . The material is general in nature . Every investor ’ s situation is unique and you should consider your investment goals , risk tolerance and time horizon before making any investment . Prior to making an investment decision , please consult with your fi nancial advisor about your individual situation . Investing involves risk and you may incur a profi t or loss regardless of strategy selected , including diversifi cation and asset allocation . This material is being provided for information purposes only and is not a complete description , nor is it a recommendation . Any opinions are those of Vivian Investment Partners LLC and not necessarily those of Raymond James . Securities offered through Raymond James Financial Services , Inc ., member FINRA / SIPC . Investment advisory services are offered through Raymond James Financial Services Advisors , Inc . Vivian Investment Partners is not a registered broker / dealer and is independent of Raymond James Financial Services .

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