Putting Your Retirement on Firm Footing

by Paul G. Provencher, CRPC Special to PRIME "Retirement planning" has become a popular phrase in recent years-and rightfully so. Most certainly, everyone has their own specific expectations and dreams about retirement, but how does your current plan stack up against your long-term objectives? Today, more than ever, planning for retirement is a necessity. Proper planning and follow-through can help you avoid shortfalls in meeting your income needs and help assure you of a smooth, secure transition from the world of work to the world of retirement. Zeroing in on change Planning ahead means setting goals and deciding how they will be met, within the framework of a changing financial picture. Many retirees find themselves torn between balancing a satisfying lifestyle with one that lacks many of the comforts that make life easier. In the absence of a solid financial foundation, you may be faced with some hard choices over the course of your retirement years. A successful financial strategy carried out faithfully will help soften many of them. The keys to success Unfortunately, time is a luxury only available to younger individuals. Therefore, as retirement approaches, there are some key points you should take into consideration in order to best position yourself for an enjoyable retirement: 1) Building foundations. Certainly, younger individuals may be able to afford taking greater risk with more aggressive investments. However, regardless of your age, you should always make a concerted effort to maximize contributions to your 401(k), IRA, or other retirement savings vehicle. In addition, it may be more prudent to gradually shift your retirement assets to more conservative, income-producing investments as you approach retirement. An asset-preservation strategy may be especially difficult for those who begin retirement planning later in life. In such situations, it is particularly critical for investments to align with personal risk tolerance. 2) The longevity game. The culture of retirement is changing. Today, it's not uncommon for someone to spend one-third of his or her lifetime in retirement. Therefore, your retirement assets will need to last longer and be able to accommodate cost-of-living increases. Consider your retirement life span if it is 20 30 years that may indicate a need for some long-term growth investments to be included in your portfolio. And you may still find yourself in the workforce in some capacity, if you need greater income. 3) Main Street or Park Avenue? Some individuals are under the impression that they will be able to live the same type of lifestyle they enjoyed during their working years, and some will. However, it''s important to keep things in proper perspective. In reality, you may have to downscale living arrangements and unnecessary expenditures in order to ensure your retirement assets will be sufficient over a long period of time. And, get a review Regardless of how close you are to retirement, it is important to keep realistic goals and expectations. Factors such as how much you have already accumulated, or how far financially you are from your objective, should play a key role in determining your course of action. A review with your financial professional can be a good first step to ensure that you have chosen the best path to fulfill your retirement lifestyle. Paul G. Provencher, CRPC is located in Wilbraham, MA. Financial information is available by calling Paul at 413-596-0000. Paul Provencher is a Registered Representative of and offers securities and investment advisory services through MML Investors Services, Inc., Member SIPC 1500 Main St., 12th Floor, Springfield, MA 01115, (413) 781-6850. Provencher Financial Services is not an affiliate or subsidiary of MML Investors Services, Inc. C: 059605-000 07/04 PRA18