Retirement planning is just one of the ways Opes Advisors can help you to make better financial decisions today to ensure that your desired financial future and ambitions are obtainable. Millions of Americans are unprepared for retirement and the average U.S. family faces a 37% shortfall in the income they will need in retirement, according to a recent McKinsey & Company study.*

Interestingly, this shortfall is caused less by stock market declines and more fundamentally by insufficient savings rates, poor investment choices and the limited accessibility of retirement plans. Furthermore, the study showed that U.S. families of all ages and income groups — not just lower- and middle-income households — are unprepared for retirement. According to McKinsey, more than one third of households with access to a qualified retirement plan, such as a 401k or 403b, do not take advantage of it, and those who do participate do not contribute nearly enough to sustain them through retirement.

In the book, Wealth Management in the New Economy: Investor Strategies for Growing, Protecting and Transferring Wealth, co-authors Norbert M. Mindel and Sarah E. Sleight outline the six things you need to know before you retire. Our approach at Opes Advisors reframes this as “The six most important things you need to know in order to understand the financial and economic aspects of your retirement and the impacts of your financial decisions.”

1. Your retirement planning should consider the likelihood that you will live to 100 and that during your retirement the cost of living will double at least once.

2. You must establish in advance a concrete idea about how much money you will need during retirement.

3. You should expect to withdraw no more than 4% annually from your savings while in retirement if you want to avoid outliving your income.

4. You will most likely need to be invested in equities and manage the risk of that equity exposure.

5. Certain kinds of protection are essential to prepare you for unexpected changes in your health and your income sources.

6. Your retirement planning will be more accurate and comprehensive if you work with an advisor.

The above points are invaluable, though they are frequently overlooked. It’s surprising how often we hear our clients discuss their retirement finances without having a clear idea about how much money they're going to need in retirement. Preparing for retirement can be difficult, but with comprehensive scenario analysis and in-depth planning you can be sure that your finances will be sufficient to support you through a long and vibrant retirement.

Call me if you'd like to discuss your financial goals and how we can help you get your retirement plan on track.

 *Click to read the PDF version of the McKinsey & Company Restoring American’s Retirement Security study.

Andy Block - Mortgage Advisor & Financial Advisor
Opes Advisors
Email Me 
Direct: 650.931.0605
Fax: 650.931.0601

License #01096311
400 S. El Camino Real
Suite 250
San Mateo, CA 94402
Fax 650.931.0601

Opes Advisors is licensed as a registered investment advisor with the Securities and Exchange Commission (SEC) and is licensed as a Residential Mortgage Lender by the CA Dept of Real Estate.

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