People often ask me, “When can I retire? How much money will I need?” To save enough for a financially secure retirement, it is important to start early and stay disciplined. Today’s generations are living longer, so we need to plan for our finances to take us through our golden years. Whatever you avoid spending counts just as much as what you save. But you must also be able to visualize the retirement you want. Only then can you create a plan that incorporates three essential components: protecting your assets from risk, creating income that lasts your lifetime and planning your legacy.

A ROADMAP TO YOUR RETIREMENT
Wealth accumulation typically begins with your first paycheck and continues throughout your career. How much savings will it take? It depends on the retirement lifestyle you envision. Where would you like to live? How much travel, what activities are in your plan? Will you volunteer? Work part time? Take the time to think about your future plans and you will have an easier time quantifying your needs. If you are married, consider your spouse’s input and views. They may vary from your own.

PROTECT YOUR ASSETS FROM RISK
As you contemplate your retirement goals, you need to understand and manage six key risks: (1) longevity— outliving your retirement income; (2) market downturns; (3) inflation and taxes; (4) healthcare risks and rising medical costs; (5) long-term care and the prospect of unexpected extended care needs; and (6) your desire to provide for your heirs or charities.

CREATE INCOME THAT LASTS A LIFETIME
Next, you will want to optimize your income in retirement, turning all or part of your accumulated assets into a steady, adequate, predictable income stream throughout your entire lifetime.

A sensible distribution plan will anticipate possible changes in the economy, the markets and even in your own needs. It factors in all sources of retirement income and provides a strategy to help you prioritize and manage your retirement distribution and rollover options. Finally, it considers various planning solutions, such as income annuities, to provide a stream of guaranteed income for life.

LEAVE A LEGACY FOR FUTURE GENERATIONS
Few accomplishments are more satisfying than knowing your hard-earned assets will make a difference in the lives of others. Many people wish to create a legacy for loved ones or a favorite charity. Some retirees try to plan charitable giving with the same assets used to fund their retirement. That approach may fail them. A thoughtful plan helps maintain your lifestyle in retirement while ensuring that your legacy desires are fulfilled. Permanent life insurance can be an important estate planning tool.

SEEK GUIDANCE
A strong retirement plan has lots of moving parts. It combines a clear vision with tailored solutions to address risks and optimize income. That is why professional guidance can make a difference. A qualified financial advisor can assess your circumstances and develop a customized plan to guide you not only to—but through—retirement.

Andy Schwartz offers advisory services as a representative of Northwestern Mutual Wealth Management Company (WMC), a limited purpose federal savings bank, and a wholly owned subsidiary of The Northwestern Mutual Life Insurance Company, Milwaukee WI (NM). Northwestern Mutual is the fleet name for NM, its subsidiaries and affiliates. Investments held with or managed by WMC are not insured by the FDIC, are not deposits or other obligations of, or guaranteed by WMC or its affiliates and are subject to investment risks, including loss of the principal. Andy Schwartz is an insurance agent of NM (life insurance, annuities and disability income insurance), and Northwestern Long Term Care Insurance Company, a subsidiary of NM, and a registered representative of Northwestern Mutual Investment Services, LLC (NMIS), an NM subsidiary, broker-dealer, investment advisor, member FINRA, SIPC. Bleakley, Schwartz, Cooney & Finney is a marketing name used by a group of Northwestern Mutual representatives (not all of whom are affiliated with WMC) including Schwartz (referred to as the “firm”), and is not a legal entity, partnership, investment advisor, broker-dealer or affiliate of NM. The information contained in this article is not a solicitation to purchase or sell investments or securities. The views expressed herein are those of the author and may not necessarily reflect the views of Northwestern Mutual.