Retirement

People are living longer and have more opportunities to form their own path for retirement. With so many avenues to take, it’s more important than ever to have clear and defined plans to reach your unique retirement goals.

Farah Financial Services will help you:

• Define your goals
• Save and invest before retirement
• Invest and draw down in retirement

Defining Your Goals

Financial independence is the goal of retirement planning. Having enough assets to provide an income that will support the lifestyle you desire. Defining this lifestyle and what you will need to support if is the first stride in retirement planning.

Estimating Expenses

You may see yourself living more simply or doing things you always dreamed of. Whatever your plan for retirement is, planning for expenses is as important as planning your investments. It’s true that work related expenses will go down, but you may find that savings are offset by more frequent dining out, travel, entertainment and health services. You will also need to plan for the amount of tax you must pay when drawing income from 401(k)s and other tax deferred accounts. A Farah registered advisor with many years of retirement experience will help you plan for every aspect of your retirement and establish a realistic plan.

Setting Goals

For most, pensions and Social Security will not be enough to completely cover your retirement plans. This gap must be filled with revenue from invested assets. A Farah registered advisor will help you set asset and target investment return goals by considering key factors like taxes, inflation and the length of time you plan to spend in retirement.

Points to consider when setting goals:

• How much will I spend while in retirement?
• How long will I spend in retirement?
• What other sources of income are available?
• How much will taxes and inflation affect my income?
• What percent of return will I likely earn on my portfolio?

The core of every retirement plan is the investment portfolio.

Saving and investing prior to retirement

After establishing your retirement goals, you will be ready to develop an action plan.

You will need to consider:

• Monthly assets to set aside
• Eligibility for new higher contribution and catch-up limits
• Returns needed to meet retirement goals
• Investments to reach those goals
• How to take full advantage of taxable and tax-deferred accounts

Your Strategy

A Farah registered advisor will help you choose investments for your portfolio to meet your goals and recommend an asset allocation strategy that reflects your risk tolerance, time frame and objectives.