By Jason LaBarge
Managing Partner, Premier Planning Group
Summer’s finally here, and it’s beautiful in Maryland. There are so many things you can add to your summer bucket list, such as sailing on the Chesapeake Bay or eating crab cakes at Chick and Ruth’s Delly before strolling down to the docks in downtown Annapolis. You’ve waited through the cold winter months for the nice weather and freedom that summer has to offer, and the possibilities seem limitless!
This is just like when you retire; you’ve worked hard through the years, diligently saving and investing your money to provide you with the retirement you’ve always dreamed of.
I like to think of your retirement in three stages. You’ve already experienced the joys of childhood, the awkwardness of adolescence and the fun of adulthood, with your ability to care for yourself being different in each stage. Your retirement will have similar stages too, where your capabilities and expenses will depend on the stage you’re currently in. I like to call them the go-go, slow-go and no-go years.
The go-go years are the years right after retirement. You’re healthy, active and ready to do everything you’ve been putting off while raising a family, accumulating wealth and going to work every day. This is the part of retirement you dream about and are most looking forward to and, much like in the early summer months, the possibilities will seem limitless! The key is to plan for the go–go years and set assets aside to pay for your vacation, boat or second home. Directly after retirement is the time when you are most likely to be healthy and able to enjoy doing the things you’ve been dreaming of for years, and we can build these expenses into your portfolio.
Have you always wanted to tour Europe? Let’s plan for that!
Have you always wanted to learn how to scuba dive? Let’s plan for that!
Have you always wanted to take an RV around the United States, visiting the grandkids along the way? Let’s plan for that!
Have you always wanted to buy a boat? We can plan for that too.
Many of the possibilities in retirement can become a reality with the proper planning, but one of the biggest mistakes I see people make when preparing to retire is not accounting for how they will pay for their dreams.
When planning your retirement income sources, I like to use Tom Hegna's terms of PAYchecks and PLAYchecks. The PAYcheck pays for all of their necessary bills and living expenses. They should be funded with dependable and consistent sources of income, such as your savings account, CDs, fixed annuities, and money market accounts. The PLAYcheck pays to fund their retirement dreams during their Go-Go Years and carry some risk by being tied to the market, but also have the potential to grow. You could use mutual funds and variable funds for this.
Just as it’s inevitable that fall will come and some items on your summer bucket list will be left undone, your slow-go and no-go years will come too. We want you to make the most of your go-go years and building “playchecks” into your retirement portfolio is the way to do it.
For more information about the author, Jason LaBarge, visit www.jasonlabarge.com.
115 West Street, Suite 400 Annapolis, MD 21401 443-837-2520
Premier Planning Group is an independent firm with securities offered through Summit Brokerage Services Inc. Member FINRA www.finra.org and SIPC www.sipc.org
Opinions expressed are that of the author and are not endorsed by the named broker dealer or its affiliates. All information herein has been prepared solely for informational purposes, and it is not an offer to buy or sell, or a solicitation of an offer to buy or sell any security or instrument or to participate in any particular trading strategy.