Why it’s hard to plan for retirement on your own

While many people rely on retirement calculators or make decisions based on generalized advice, the reality is that no one-size-fits-all solution exists. A calculator or retirement age-based model may tell you how much you need to save based on averages, but it doesn’t account for the unexpected—such as market volatility, health expenses, or a longer life than anticipated. Many tools also fail to consider the emotional side of planning for retirement finances, which can lead to costly mistakes.

Retirement is not just about reaching a magic number. It's about helping to ensure you have enough to sustain your lifestyle for 20, 30, or even more years after you retire. That's where personalized planning becomes essential.

Planning for retirement means planning beyond retirement

One of the biggest misconceptions people have is that their planning stops once they retire. In reality, you need to continue thinking about your financial future well into retirement. As your situation and the economy shift, your strategy needs to as well. It’s not just about getting to retirement; it’s about making sure you can sustain your lifestyle all the way to the end of your life.

This means you’ll need a plan that considers things like:

• The impact of inflation on your purchasing power
• The mix of investments most likely to protect your quality of life
• How that mix should change leading up to and during your retirement
• Long-term healthcare costs
• Where you live or want to retire
• Whether you want to leave a legacy or provide for loved ones

The key point we want to stress here is the importance of thinking long-term, helping ensure that your retirement plan has the flexibility to last through various stages of life and different economic and market situations.

Why relying only on fixed income can be risky

Many people believe that as they approach retirement, they should shift most of their investments to “fixed income” assets, such as bonds or annuities. While this may seem like a safer option, it can also be a risky strategy in that it leaves you vulnerable to inflation and rising costs. If all your money is tied up in assets that don't grow, you will likely lose purchasing power over time.

Fixed income investments don’t adjust to the increasing cost of living, which is compounded by inflation. To put this in the context of a general “retirement calculator,” even though you may save an ideal amount, if you keep that amount in fixed assets, it still may end up being too little. That’s why we believe it’s critical to strike a balance between stable, low-risk investments and growth-oriented assets that can help maintain your purchasing power over the long haul.

One of the best ways to do that is to work with a practice, like ours, that specializes in creating personalized, diversified, and balanced portfolios that include growth investments. This helps you to benefit from long-term growth while having a cushion of accessible cash to meet your short-term needs.

Key questions to consider as you plan for retirement

As you approach retirement, ask yourself the following:

• What are your current and expected living expenses?
• Do you have multiple income sources, such as a pension, rental income, or Social Security?
• What are your health care needs, and have you planned for potential long-term care?
• What do you envision for your retirement—travel, new hobbies, or perhaps relocation?
• Do you want to leave an inheritance or contribute to charities?

If you don’t know the answers to some or all of the questions, that’s ok. A good investment planner will help and guide you in answering these questions and many more. One of the reasons our advisors feel so passionate about knowing and understanding our clients and their goals and values is that it allows us to craft personalized strategies designed not only to help you plan for the retirement you envision, but also to help weather the potential ups and downs during that time.

How Granite Wealth Management can help you plan for and enjoy retirement

Retirement planning isn’t just about numbers—it’s about having confidence in your plan and the sustainability of your retirement strategy. We have decades of experience helping people enjoy their retirement without the fear of running out of money. Our team understands that retirement is a big transition, filled with uncertainty and emotion, and we’re here to guide you through it.

Here are a few examples of ways we can help you plan for and enjoy retirement:

• Personalized cash flow planning: We’ll help you understand your current financial picture, including discretionary and necessary expenses, so you have a clear idea of how much you are likely to need in retirement.
• Proper asset allocation: We avoid the outdated age-based allocation strategies that tie your asset mix solely to your age. Instead, we take into account a comprehensive range of factors, including the economy, to help you balance growth and security.
• Inflation protection: We build portfolios that include a blend of equities and fixed income and continually reevaluate those over time, helping you maintain your purchasing power even as the cost of living rises.
• Tax optimization strategies: We work with you to help minimize taxes and strive to ensure your retirement accounts are structured to help maximize the value of your withdrawals.
• Legacy and charitable giving: If leaving money behind is important to you, we can help you create a plan that aligns with your values and financial goals.

Retirement planning is about so much more than just saving enough—it’s about aiming to ensure your financial security for the rest of your life. Granite Wealth Management is here to help you navigate the complexities, ask the right questions, and create a plan that aims to meet your unique needs throughout your entire retirement.

Reach out to us today for a second opinion on your current retirement strategy. We want to help guide you toward a fruitful, fulfilling, sustainable retirement.

Wells Fargo Advisors Financial Network does not provide legal or tax advice.