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Retire Right: Ditch the Traditional Plan, Embrace Your Risk-Based Freedom

You’re finally within shouting distance of retirement. 10 years away – a decade away from weekend getaways, long vacations, and finally pursuing your passions. But amidst the excitement, a worry might be creeping in: Will my 401(k) and Social Security be enough to sustain the retirement I dream of?

​The truth is, relying solely on these traditional options might leave you financially short in today’s dynamic economic landscape. Social Security, although invaluable, is projected to replace only about 40% of your pre-retirement income, and its future remains uncertain. While 401(k)s offer tax advantages, the onus of saving solely rests on you, and market fluctuations can wreak havoc on your plans.

So, what’s the answer? It’s time to personalize your approach to retirement planning, one that considers your unique financial situation and risk tolerance.

Why a One-Size-Fits-All Plan Won’t Do:

Think back to your 20s. Would you wear the same clothes as your friend with completely different style preferences? Of course not! Retirement planning is similarly individual. A generic, traditional plan might leave you exposed to unnecessary risks or miss out on potential opportunities.

Introducing the Risk-Based Approach:

Imagine a retirement plan tailored to your individual risk appetite. This approach factors in various elements like:

- Your income and lifestyle: How much do you earn now, and what lifestyle do you envision in retirement?
- Investment goals and risk tolerance: Are you comfortable with aggressive investments that offer higher potential returns but also carry greater risk, or do you prefer steadier, lower-risk options?
- Health and potential healthcare costs: Unexpected medical expenses can derail even the best-laid plans.
- Family situation and potential dependencies: Are you supporting dependents, or will you need help yourself in the future?

By analyzing these factors, a risk-based approach helps you:

- Identify potential shortfalls: Understand the gap between your desired retirement income and what your current plan provides.
- Explore diverse investment options: Go beyond traditional stocks and bonds to consider income-generating assets, alternative investments, and even annuities that offer guaranteed income streams.
-Develop a dynamic strategy: As your circumstances and market conditions change, your plan can adapt to minimize risk and maximize returns.

Taking Control of Your Retirement Future:

With 10 years or so to go, you have the time and opportunity to create a personalized, risk-based retirement plan that gives you peace of mind and financial security. Don’t settle for a generic approach that might leave you vulnerable.

Here are some steps to get you started:

- Consult a Retirement Risk Advisor: Our team can assess your individual needs and design a plan that aligns with your risk tolerance and goals, so you don’t run out of money before you run out of retirement.
- Educate yourself: Understand different investment options, risk management strategies, and the ever-evolving retirement landscape. Attend one of our many retirement risk webinars.
- Start small but start now: Every bit saved today grows exponentially over time. Even small adjustments to your budget can make a significant difference!

​Remember, retirement is not a destination, it’s a journey. By taking control of your planning and embracing a personalized, risk-based approach, you can navigate this journey with confidence and arrive at a fulfilling and financially secure retirement.

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