January 23, 2008

We are seeing a shift in financial planning for retirement in Ohio. The past 10 years have been a period of major ACCUMULATION of investment assets by baby boomers in Ohio, while the next 20-30 years will see a DE-CUMULATION of growth investment assets. In other words, Ohio baby boomers have been saving up for retirement with growth investments. Once they retire, they will need to start shifting their nest eggs from growth to income.

How do you do that? Well, some people retiring today have pensions which will support them. However, most people who are soon to be entering retirement in Ohio will have to work with a financial planner to create their own "retirement paycheck". This often means a combination of Social Security, having a plan to shift a portion of their investment accounts to income assets, and the purchase of annuities which can provide a guaranteed lifetime income.

Your current age, your spending, and your planned retirement age have major impacts on how much you will need to support your retirement. An Ohio financial planner or investment advisor can work with you to analyze your financial plan. After meeting with their advisor, some people will change part of their plan, like working a little longer or spending less. Others will be happy to hear their Ohio advisor tell them their income should last. Younger savers can also benefit, by looking at the various savings "buckets" (401k, IRA, Roth IRA, taxable accounts, etc) you are using for retirement income.