Achieving financial security in retirement has never been more challenging. The old “three-legged stool” of retirement - a company pension, social security, and individual savings - is now teetering on one and a half legs. That’s why having a personal retirement plan has never been more important.
And while company pension plans become rarer, if you are lucky enough to have one (along with social benefits), you still have to navigate taxation to achieve successful long-term retirement planning.
Your personal retirement plan must consider issues like:
1) Diversification and asset allocation.
2) Sequence of returns.
3) Withdrawal strategies and “burn rate”.
4) Taxation at all retirement stages, using all credits and deductions available.
5) And using different accounts and strategies together to stabilize income.
A good retirement plan, mapped out in stages, should help quell any trepidation you might feel when thinking about your financial future.