Retirement isn’t always straightforward. Transitioning from working for a paycheck to living off your savings can be daunting. The fluctuations in the stock market can add to this stress. But with proper retirement income planning, you can minimize this worry.

Hi, I’m Hunter Brockway, founder of Boca Retirement Strategies. My goal is to help you achieve a successful and stress-free retirement, ensuring you can enjoy your retirement without being overwhelmed by taxes.

The market will rise and fall. That’s a given. So how can you ensure you won’t run out of money and end up in a difficult situation?

First, it’s crucial to establish a plan around your “minimum dignity floor,” which covers your essential living expenses. This can be managed through secured income or your investment portfolio, or both. Secured income might include Social Security, pensions, part-time or consulting work, annuities, or other reliable sources.

For example, if your minimum dignity floor is $30,000 per year for basic needs, and your Social Security benefit is also $30,000 after taxes, your floor is covered. This means you don’t need to constantly withdraw from your portfolio and worry about market fluctuations.

If additional cash flow from your portfolio is needed, we use a strategy called the “buckets approach.” This method categorizes investments into three buckets: cash, income, and growth. Assets are placed in these buckets from most stable to more volatile.

We aim to cover about four to five years of income needs with the cash and income buckets. If you need an additional $40,000 per year, we would set aside approximately $160,000 to $200,000 in these buckets. This doesn’t mean holding $200,000 in cash but having strategies to generate cash flow without selling investments at a loss.

Why four to five years? Historically, market peaks and troughs have shown that this time frame helps maintain retirement funds without significant losses.

The next step is using a “guardrails approach” to manage retirement spending. This approach acts like guardrails on a road, keeping your spending on track even when markets underperform. It adjusts for inflation and helps ensure your spending remains sustainable.

If you want to make a significant purchase, like an RV, and this affects your portfolio, we will assess the impact on your guardrails. You have the freedom to spend, but we will inform you of any potential risks and adjust income levels if necessary.

Remember, while the stock market has its ups and downs, historical trends show that overall, it increases in value over time. Temporary declines are not permanent losses. A well-diversified portfolio should not experience permanent losses, and market drops can be opportunities to invest in quality companies at discounted prices.

So, take action:

1. Create a retirement income strategy to enjoy a stress-free retirement.
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I’m Hunter Brockway, founder of Boca Retirement Strategies. For any financial questions, contact us at contact@bocaretirement.com. Enjoy a successful retirement, and thank you for watching!

If you’re interested in joining a group to discuss finance, healthcare, travel, and local events, email me at contact@bocaretirement.com. This group is dedicated to helping you and others retire successfully.