Many people view retirement as a prize they’ll win if they work long enough, save enough, and invest well. But when you think about it, retirement isn’t the finish line, it’s the starting line. It’s the start of a new lifestyle and for many it’s an opportunity to enjoy family, hobbies and travel.
THE RETIREMENT CHALLENGE
Retirees commonly face three major hurdles when trying to secure a reliable stream of income in retirement. The first challenge is called ‘Sequence risk’ which is the danger that you’ll retire at the “wrong” time and your savings will suffer from the effects of an economic downturn. Those that retired in late 2007 or 2008 experienced Sequence Risk. The nearly 37% drop in the stock market in 2008 caused irreparable damage on their retirement savings.
‘Inflation Risk’ is another major challenge for retirees. A retiree must be able to build enough growth potential in their retirement investments to guard against future increases in the costs of goods and services, especially healthcare. Even a relatively benign 3% annual inflation rate could boost a $500 monthly grocery bill to $903 over 20 years. Addressing the potential effects of inflation is important for protecting purchasing power during retirement.
‘Longevity risk’ or the risk of outliving ones retirement resources, is a major concern for those in or nearing retirement.
WHAT’S YOUR PLAN?
Another study found that three out of four of preretirees think that developing a plan with a financial advisor is important, yet 83% have no written plan. It went on to report that 67% of preretirees ‘plan’ for retirement is to keep working1.
A BETTER CHOICE
Whether you want to travel the world or stay close to home, your retirement should be exactly what you want it to be. It should be a time for you to enjoy all that you have worked for without having to worry about your funds running out. But as we’re learning, retirement can be challenging and the first step is to make sure that you have a fiduciary, like Unified Trust, by your side. A financial expert that’s bound by law to act in your best interest.
We also know that retirement isn’t a one size fits all solution. So it’s important that you have a personalized retirement solution that addresses the retirement challenges in terms of your goals and expectations — a solution that anticipates lifestyle changes as you age and professionally manages your assets to provide you with a reliable and sustainable income stream throughout your retirement.
Unified Trust, a fiduciary based in Lexington, KY, has spent years prudently developing a retirement income solution to help you achieve a reliable income stream in retirement. Unified Trust’s solution, called the Unified IncomePlan® integrates all your financial components — your investments and other financial assets, tax-efficiency planning, trust and estate planning, health care and insurance coverage, lifestyle spending, and cash flow planning — and addresses the challenges that can get in the way of enjoying your retirement years.
Retirement is the starting line. Are you ready?
Dr. Gregory W. Kasten, MD, MBA, CFP®, CPC, AIFA®, began his career as a board certified anesthesiologist. In 1985 he founded what is now known as Unified Trust Company, a nationally chartered trust company with offices in Lexington and Louisville. Dr. Kasten was inducted into the Advisor Hall of Fame by Research Magazine in 2012 and was named the 2013 Retirement Plan Adviser of the Year by Employee Benefit Adviser Magazine.
Contact Dr. Kasten at (859) 296-4407 x 202 or Greg.Kasten@unifiedtrust.com