Your Guide To Life After the Paycheck
Plan Today
Enjoy Tomorrow
The journey starts with making a handful of simple decisions.
While we work, we get a regular paycheck. But what happens when we retire? What replaces that paycheck, and where will our income come from? Retirement income security means we can still live comfortably after we retire. It’s not just about getting a new paycheck, it’s about having enough money to cover our expenses as prices keep going up. It’s about retiring with peace of mind that we can replace our current paycheck every year of our retirement. Erisa RetireReady is a super personalized and easy-to-understand plan that helps you figure out how much you need to save and how to make the most of your investments to enjoy a comfortable retirement. With clarity, confidence, and success, you’ll be well on your way to achieving your retirement dreams!
Retirement Income Security
Ensuring that after you stop working, you can maintain a reasonable standard of living that keeps life ticking along.
Sources of retirement income:
- Social Security (similar to a government pension)
- Side Hustle – business or secondary job during retirement years
- Retirement Savings – 401(k), personal savings, pension, etc.
How to Get There
Saving for retirement involves two key factors: saving enough and investing wisely. Matching investments to when you will need the money is crucial. Pension funds follow this principle. For example, if you do not need funds for 10 years, you can invest in the stock market. Historically, the stock market has yielded positive returns every 10 years for the past 124 years and has mostly been positive over periods as short as 7 years. These periods, called investment cycles, form the basis for the three phases to and through retirement.
Planning Phases
Accumulation
01
During the Accumulation Phase, focus on contributing sufficiently and maximizing investment growth. Align investments with the timing of future needs, such as retirement. Expect short-term fluctuations, but maintain a long-term strategy to secure a comfortable retirement income
Taper
02
The Taper Phase begins about 10 years before retirement and continues until the retirement date. During this period, your investment plan gradually shifts to safer options. By retirement, you should have sufficient funds in a fixed-income account to cover monthly withdrawals for the first 10 years, while the rest of your investments focus on growth.
Retirement
03
At retirement, your assets divide between a Growth Account and a Fixed Income Distribution Account. This strategy aligns funds with their use during the first investment cycle, the initial 10 years of retirement. Near the cycle’s end, the Fixed Income Account replenishes from the Growth Account. This process repeats throughout retirement. It is a mathematical asset allocation method designed to reduce overreaction during market volatility.
01
Accumulation
During the Accumulation Phase, focus on contributing sufficiently and maximizing investment growth. Align investments with the timing of future needs, such as retirement. Expect short-term fluctuations, but maintain a long-term strategy to secure a comfortable retirement income
02
Taper
The Taper Phase begins about 10 years before retirement and continues until the retirement date. During this period, your investment plan gradually shifts to safer options. By retirement, you should have sufficient funds in a fixed-income account to cover monthly withdrawals for the first 10 years, while the rest of your investments focus on growth.
03
Retirement
At retirement, your assets divide between a Growth Account and a Fixed Income Distribution Account. This strategy aligns funds with their use during the first investment cycle, the initial 10 years of retirement. Near the cycle’s end, the Fixed Income Account replenishes from the Growth Account. This process repeats throughout retirement. It is a mathematical asset allocation method designed to reduce overreaction during market volatility.
Ready to sort your plan? Combine disciplined savings with thoughtful investing for a secure and fulfilling retirement. Follow the action items on your personalized Erisa RetireReady report. Fill out the form below to request an updated Erisa RetireReady report.
Get your
