Proper planning will always make a difference!
There are 3 Phases of Retirement Income Management.
These separate and distinct stages of building, conserving and spending down your retirement money describe the retirement planning money cycle. Which Phase are you in?
This is the time of building assets by saving and investing, usually from earned income which you have specifically reserved for retirement.
Keep in mind that during your retirement years your ability to maintain a comfortable lifestyle will depend on the money you saved, the investments you made, and the assets you accumulated during the Accumulation Phase.
Planning, Preparation and Preservation Phase
This is the core of your retirement planning efforts; ideally addressed, 7 to 10 years prior to your planned retirement start date. Phase 2 will include a review of; all your retirement investments, anticipated basic living expenses, lifestyle expenses, potential tax obligations, Social Security benefits start date, any expected pension, Required Minimum Distribution calculations for all qualified money, retirement risk-profile, medical and estate planning needs, and potential debt reduction prior to actually retiring. Careful attention is paid to determine your expected retirement cost of living with consideration to both your basic monthly living expenses as well as the cost of your desired lifestyle expenses and how the ongoing increase of cost of living may affect your future income requirements.
All retirement planning is done with one primary objective; to create an income stream that you cannot outlive. Phase 3 starts when your earned income stops. This is the time you reap the rewards of your retirement planning efforts; you will begin receiving your monthly Social Security benefit, potential pension, and planned income supplements from your various investments. The amount of money you will have to support your Distribution Phase is dependent on how well you prepared during your Phase 1 Accumulation phase and your Phase 2 Planning, Preparation, and Preservation phase.