Do you have a written income plan for retirement?
have your golden years covered? Get it in writing! says expert
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[August 29, 2013]
"Age 85 is a bad time to go
broke," says expert retirement planner Jeff Gorton. Personal
savings, various investments and, yes, Social Security may prove to
be short of what you'd expected.
"Budgeting how you spend money
before retirement can often be a misleading measurement of how
you'll actually spend it during retirement," says Gorton, a veteran
certified public accountant, certified financial planner and head of
"Spending 40 hours a week at work not only earns you a paycheck,
it also keeps you from spending money on more vacations, matinee
screenings at the movie theater, extra trips to the mall or shopping
online. You need to be exceedingly realistic in your planning, and
the five years before retirement are actually the most crucial in
solidifying post-employment stability."
To prevent a rude awakening during retirement, Gorton makes
certain his clients start with a written income plan, or WIP. He
reviews the benefits and importance of this "living document":
65-year-old married couple today, there is a 72 percent chance
that at least one spouse will live to age 85; a 45 percent
chance that one will live to age 90 and an 18 percent chance
that one will reach age 95, according a recent study from the
CDC National Center for Health Statistics. You may not think of
listing things like pet care, yard maintenance and regular
visits to salons or spas. But if you enjoy those services now,
you may want them during retirement, and you might find that you
underestimated the real cost of maintaining your desired
lifestyle. And, that's not including gifts to children and
The forecast of a two-legged stool.
A WIP helps you appreciate the reliability of retirement income.
What sources of income do you anticipate having? Traditionally,
retirement funding has been viewed as a "three-legged stool,"
implying a balance between Social Security, retirement plans,
and savings and investments. As the baby boom generation ages,
Social Security benefits may decrease -- and the age at which an
individual can collect benefits may increase. Changes in
employment may affect retirement plans. As a result, the third
leg of the stool, savings and investments, may become even more
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all written documents, you must always consider the source. What
you may not realize is that a financial planner is liable to
have a stake in selling you a financial product. Just like a
retailer may have an incentive to move certain brands of
products, many planners are incentivized to have you invest in
specific financial vehicles from major institutions. What plan
works best for you? Seek advice from an expert who isn't trying
to sell you something, such as an independent firm.
Who is authoring your WIP?
"If you don't have a written income plan, then you're just hoping
things will work out," Gorton says.
Jeff Gorton is a certified public accountant and a certified
financial planner specializing in individual tax and retirement
planning. He is also an investment adviser representative under
Alphastar Capital Management, an SEC-registered investment adviser,
and has a life and health insurance license. Gorton works with
individuals and their families to create and protect their financial
legacies. He specializes in working with retirees in the areas of
tax planning, benefits, retirement planning, estate planning and
safe money techniques. He received his bachelor's degree in
accounting from the University of Oklahoma. Gorton worked for 10
years as the chief financial officer for a large retail
organization, overseeing their accounting, benefits and 401(k)
[Text from file received from
News and Experts]