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Retirely in The things you own end up owning you,

Retirement Planning Essentials: Things you Need to Know

Dan White is a Chartered Life Underwriter (CLU®), a Chartered Financial Consultant (ChFC®), and a Retirement Income Certified Professional (RICP®) Dan White and Associates was founded in 1987 to provide stability in the face of this unknown. Firm founder and licensed insurance professional, Dan White has focused his niche practice solely on addressing the distinctive financial needs for those nearing retirement and those who are retired. Dan White and Associates is one of only a handful of their practice to transitional planning.

“What people have to try to do in retirement is to come up with an accurate budget including necessities, wants, and wishes.  Necessity expenses are essential expenses that must be covered, wants and wishes are discretionary expenses.  Compare the expenses to the income coming in – pensions, Social Security, and conservative withdrawals from retirement assets.  If you have all the expenses covered with guaranteed income, life is good.  If not, we either have to decrease expenses or increase the return which may entail moving into riskier assets.

Withdrawing a fixed amount is a good strategy but may not be realistic when factoring in inflation.  Ideally we would build inflation protection into the income plan with inflation protected investments or by laddering when we desire income payments to begin.

We use annuity products quite a bit today because the average person no longer has access to a defined benefit pension plan which is essentially an annuity.  So when people come in with large defined contribution plan (401K) balances, often it makes sense to set up guaranteed income streams through the use of an annuity product.”

For more information on Dan White, click here: http://www.danwhiteandassociates.com/