Retirement planning is one of the most important financial strategies. It ensures that you have enough money to live comfortably in retirement without having to worry about running out of cash. But if you've never looked into retirement income planning in Oakland County before, the process can seem complicated and overwhelming.  

Retirement planning is an important financial decision. But sometimes, it can feel like a daunting task, especially if you're not quite sure where to start. Unfortunately, most people don't think about it until they're in their 40s or 50s. The good news is that it doesn't have to be complicated. All it requires is a little bit of knowledge and some honest introspection to get started. 

In today's economy, it's more important than ever to have a plan in place to ensure that you can maintain your current lifestyle in retirement. But not everyone is ready for this kind of talk. For some, the mere mention of retirement can trigger a serious case of jitters. But the earlier you start, the better off you'll be. 

A note of retirement income planning in Oakland County 

Steps You Need to Take in Retirement Income Planning  

Determine How Soon You Want to Retire 

The first step advisors recommend you think of is to decide what age you want to retire. This can vary from one person to another, so there's no fixed answer to this question. Knowing your retirement age sets the bar for how flexible you can be with your investment options.  

The higher the gap between your current age and your retirement age, the wider the possibilities for you to invest in riskier investment types, such as stocks. Although stocks can be volatile, they have been proven to work best in the long run (say, more than ten years). 

On the other hand, you should focus more on income security and preserving your capital if you are older. This means that you should participate in less risky investment types, like bonds. Another factor to consider under the same circumstances is the inflation rate that can accumulate every year.  

The inflation rate can mean a significant difference when you're 45 years old and planning to retire five years from now compared to when you're still in your twenties and thinking of retiring 30 years after. In this case, the former only has fewer considerations regarding factoring in the inflation rate given the time they will have.  

Calculate How Much Retirement Spending You'll Need 

Understating your expenses can result in outliving your portfolio, while overstating your expenses may risk not living the kind of lifestyle you want to have during your retirement years. Therefore, this step in retirement planning is crucial because it determines how much you need to withdraw each year.  

As fiduciary experts would say, the estimate should be close to 100 percent of your current expenditures. This is because although you will have fewer expenses on work-related stuff in the future, being a retiree grants you all the time in the world to splurge in travels, shopping, or doing expensive activities.  

People who understate their retirement spending soon realize they don't have enough money to sustain the lifestyle they want to have.  

Benefits of retirement income planning in Oakland County 

Get Help with Retirement Income Planning in Oakland County 

Identifying your retirement age and spending habits is crucial in securing your financial future. However, so many things come between these decisions, such as taxes, investment risks, and portfolio design and management. These are the nitty-gritty sides of retirement planning and can seem daunting for an ordinary person.  

Thankfully, you are not alone in this rather scary task, as ABB Wealth Strategies vows to help individuals better shape the future they so desire for themselves and the people they love. If you're ready to start securing your future, give us a call to get the best advice.