A Recipe for Retirement Success: Use a Crockpot not a MicrowaveSubmitted by Orange CA Financial Advisor | Sterling Wealth Partners on June 26th, 2017
A recent article in Financial Planning magazine by Dr. Craig Israelson had a great analogy for the benefits of saving for retirement early. He compared using slow and steady saving, which allows for time to do the work of growing your next egg to using a crockpot to cook. The alternative of course is to do nothing and wait until the last moment and then try get something accomplished, which is like trying to microwave a roast quickly right before dinner.
We think this analogy applies perfectly to retirement income planning. Cooking with a crockpot requires careful planning and more work up front, but you are usually rewarded with a better meal than just throwing something in the microwave last minute. Planning for retirement is the same way. Doing planning and preparation just a few years before retirement will usually lead to better results than retiring and then figuring out what to do. When we are preparing a retirement income plan for our clients, we are looking at every available strategy and throwing them in the crockpot so you end up with the proper mix of strategies that are right for your situation. For example, we may combine a diversified multi-asset portfolio that matches your risk score and time horizon with risk management strategies like income annuities and long-term care insurance. We may also consider tax location planning, optimized Social Security claiming strategies and options to utilize home equity along with the investment and risk management strategies. This can all blend into a comprehensive and coordinated retirement income plan that can improve your chances for a successful and rewarding retirement.
We are frequently asked if it is “too early” to plan when we are consulting with people who have 3-10 years before their expected retirement. The answer to that is clearly no. With a little time and by taking a holistic look at your retirement income goals, we can help create the right recipe for retirement success for you. It just takes a crockpot approach instead of a microwave.
We are always pleased to offer a complimentary retirement income consultation. If interested, please contact us at (714) 592-7705 to schedule your consultation.