Florida Retirement Planning and Florida Retirement Income

January 13, 2008: Retirement planning shifting to providing retirement income.

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

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 Florida 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 sell and spend a portion of their investment accounts, 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. A Florida financial planner or investment advisor can work with you to analyze your financial plan. After meeting with their advisor, many people realize they should change part of their plan, like working a little longer or spending less. Others will be happy to hear their 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.