Q.  Robert, I enjoy reading your articles.  I was wondering if you have any advice for me.  I am thinking about retiring in 7 years.  When should I begin to look at some of the different retirement strategies that you write about?  – Michael in Kernersville

A.  Michael, I believe that retirement planning is a lifelong process.  It is never too early to start planning.  You should be looking at your portfolio at least once each year from a retirement planning perspective.  Your retirement could potentially last 30 years.  You mentioned you wanted to retire in 7 years.  I suggest you may want to also have a plan in place if you are forced to retire sooner than expected.  Many things outside of your control can happen that could change your retirement date.

You also need to put together a retirement budget.  This should include your fixed expenses; housing, food, health and/or life insurance, and taxes.  You should also calculate what income you will need for your type of lifestyle.  Lifestyles vary depending on things you like to do such as movies, sporting events, etc.  Remember that some of your expenses in retirement could actually decrease, while others, especially medical costs will most likely increase.

When I give a seminar I like to tell people “you can’t get to where you are going if you don’t know where you are at.”  You might think you know exactly what you have in your portfolio, but there could be undisclosed fees and conditions of which you are not  aware.  You need to be realistic in terms of future earning potential of your investments.  If you have little or no debt at retirement and feel that $45,000 annually is a sufficient amount to live on, and let’s say your social security is $25,000 annually, to make up the difference of $20,000, you would need to earn 4% per year on an amount of $500,000.

I know I harp on this, but make sure your will, trusts, power of attorney (health and financial), and beneficiaries are up to date.  Also, make sure your heirs know where these documents are located.

Keep the questions coming at rdcooper@globalfinancialpc.com.

If you would like a complimentary consultation with Robert, call the office at 993-2012.

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Robert Cooper, CRPC, RFC 

Investment Advisor Representative

Providing Financial Planning Services in the Triad for Over 20 Years

336-993-2012  •  www.coopercares.com  

935-E Mountain St., Kernersville, NC 27284

Investment Advisory Services Offered Through Global Financial  Private Capital, LLC, an SEC Registered Investment Advisor.

If you would like a complimentary consultation with Robert, call the office at 993-2012.

Robert Cooper and Global Financial Private Capital, LLC do not provide tax or legal advice.  Individuals should seek advice from their own tax or legal counsel for their particular situation.

Any comments regarding safe and secure investments and guaranteed streams refer only to fixed insurance products. They do not refer, in any way to securities or investment advisory products. Insurance and Annuity product guarantees are subject to the claims paying ability of the issuing company, and are not offered by Global Financial Private Capital.