Navigate your ascent to retirement video

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Video transcript

Welcome to the second video in our series

Navigate your ascent to retirement

In the first video, we talked about

Planning for Retirement in a New World Context

As we discussed in our last video,

  • The world changed quite a bit during the pandemic
  • The pace of change continues to accelerate
  • This presents certain challenges – but also certain opportunities
  • We’ve distilled our thinking on these opportunities into 5 Keys that will help you achieve your retirement goals
  • Each of these gives you tools and principles you can use to navigate your investment strategy in the new world to make sure you get to your retirement goals on time
  • Now let’s get started

Key #1 – Navigate Your Ascent to Retirement

  • Before you retire, there are 2 important questions that will set the foundation for your strategy
  • #1 – How much money will I need to retire?, and
  • #2 – When will I be able to start my retirement?
  • If you are already retired – we’re going to cover a lot of nuances to make sure you’ve set the right foundation and you are able to confidently pursue all of your retirement goals.
  • If you are not yet retired, let’s talk about what you’ll want to do to get there
    Now – let’s dive in a bit deeper into these questions…

How much do you need to retire?

  • The first million-dollar question, or perhaps multi-million dollar question is – how much do you actually need to retire?
  • This can be broken down into 2 main questions:
    • 1) How much will you need to live on during your retirement?, and
    • 2) How much will you need to save to secure #1?
  • Now let’s tackle the first question…

How much do you need to live on during your retirement?

  • Now, this depends on a number of factors
    Including, first off -
  • What kind of lifestyle will you lead during retirement?
    This includes all of your expected expenses as well as planning for unexpected and potentially major items like healthcare or other expenses
    Now – the next question can be a bit tricky, but you’ll still want to ask it.
  • When do you and your spouse plan on beginning your retirement; and how long do you both expect to live during your retirement?
    You can look at your parents, or grandparents, and your lifestyles, and make an estimate of how long you both expect to live.
  • Remember – your retirement funds have to be set aside to cover all expenses for you and your spouse to avoid any surprises

How much will you need to save to secure your retirement lifestyle?

  • Now perhaps the harder question is – how much do you need to start your retirement with to secure your desired lifestyle?
  • Obviously, this will depend on a number of factors – including your lifestyle in retirement, your earning and saving potential, and your tolerance for risk
  • An Edward Jones financial advisor can help you answer these questions – and other questions related to your goals, lifestyle needs, and financial strategies.
  • If you’d like help finding your retirement number, or have other questions around your retirement, click the button below to connect with a financial advisor and we’ll be glad to help out.
    Now let’s talk about…

How you can manage the amount of risk you take on during your ascent to retirement

  • As the pandemic recently showed us, and the financial upheavals of 2008 and 2000 demonstrated before that, our strategies will be tested – and they will need to be built on the right foundations to get through whatever comes next
  • When used properly, risk is the engine that can drive reward and growth
  • Although you’ll naturally want to avoid taking on too much risk, too little risk in your strategy  can constrain the growth required to get to your retirement – and the cashflows required to drive your lifestyle once you get there


How much risk is the right amount to incorporate?

  • This is a very personal question – and the answer can be very different for you and someone else, but as a general guideline:
  • The longer timeframe you have to build your nest egg – the more you can incorporate stocks and other risk instruments into your strategy.
  • Over short timeframes, these investments can be volatile – but over longer timeframes, they tend to outperform less risky investments
  • This is why financial advisors may recommend a mix of stock-type – or higher risk - investments and bond-type – or lower risk – investments into your strategy  depending on your timeframe to retirement and expected length

When you build out your portfolio, the goal is to balance security with upside potential.

  • Incorporate smart risk – or carefully calculated risk - to generate enough growth over time to support your lifestyle goals
  • Incorporate lower risk financial vehicles to provide a secure base
  • And, Incorporate the appropriate insurance products into your portfolio to cover all of your bases and also provide protected growth

It’s important that you get the right mix in your portfolio to balance all of these risks – and also that you rebalance over time as your needs evolve.

Let’s quickly summarize:

  • Your Retirement Number is the total amount you will need to cover your ongoing lifestyle requirements in retirement, and buffer against planned and unplanned expenses
  • You will want to properly incorporate the right level of risk in your portfolio during your ascent to retirement
  • This smart risk balances security with upside potential
  • The mix of investments in your portfolio should align with this smart risk – and it should evolve as your needs evolve

When it comes to planning your retirement, the new landscape certainly introduces new challenges – but it also comes along with new opportunities to thrive over the long term.

  • Even with all of the changes that happened during the pandemic – the same fundamentals that drive successful planning for retirement still apply – now more than ever
  • Navigating retirement is a complex endeavor –

but with the right focus on fundamentals, you can feel confident about your strategies

For a tailored approach, click the button below to connect with an Edward Jones financial advisor who will partner with you to create a long-term personalized strategy  to help you achieve your retirement goals.

Thanks for watching – and we’ll see you in the next video

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