5 Things to Know About Retirement Planning According to William Schantz

William Schantz
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Retirement planning is no easy feat but it is one of the most crucial aspects of a person’s life. Not only does it determine whether a person can have a comfortable, stress-free life once they stop working but also secure the financial future of any dependents. Planning for retirement is a multistep process that transforms over time. The process starts with thinking about goals that an individual wants to fulfil with respect to their retirement.

There are certain factors that are important to consider when planning for retirement according to William Schantz. The different types of retirement accounts, investment options and whether to hire a financial planner or not are all critical factors.

Think about the Time Period, Urges Schantz

The foundation of a successful retirement strategy is laid by your current age and expected retirement age. The longer the period between now and retirement, the bigger the risk your portfolio can tolerate. If you’re young and have more than 30 years till retirement, you should invest the majority of your money in risky assets like equities.

Schantz Asserts to Determine Retirement Spending Needs

You can determine the required size of a retirement portfolio by having realistic assumptions regarding post-retirement spending patterns. The majority of people predict that after retirement, their annual spending will be just 70% to 80% of what it was before. This assumption is frequently proven to be impractical, particularly if the mortgage is not paid off or if unexpected medical expenditures arise.

Retirees may also spend their first years after retirement splurging on travel or other bucket-list items as per Schantz.

Taxes Are Crucial to Consider

As soon as individuals know the time frame that they are looking at and the expenses that they will incur during the retirement period, the real after-tax return becomes a point of consideration, states William Schantz. This is vital because it helps determine whether the current investment portfolio will be able to provide the necessary costs post-retirement or not.

Compare Risk Tolerance and Investment Objectives as Schantz Explains

The investment options that you choose for retirement planning must create a unique balance between risk aversion and generating a certain amount of return. What is the amount of risk that you are willing to take and how much return do you expect are the two most vital questions that should factor into the retirement planning equation.

Focus on Estate Planning

Estate planning is another key step in a well-rounded retirement plan, and each aspect requires the expertise of different professionals, such as lawyers and accountants, in that specific field. Life insurance is also an important part of an estate plan and the retirement planning process. Together, William Schantz notes that these elements can make a sound plan for your financial future.

Conclusion

Retirement planning is no easy task. It requires considerable attention and research before people can even begin to take action asserts William Schantz. With abundant discussions, consultations and studying of relevant materials, individuals can secure their financial future for the time when they retire and also do the same for their next of kin.