What curve are you on?
Although most Americans have began planning for retirement, many feel they do not have effective retirement plans. This could be due to the lack of knowledge of employer sponsored plans or the benefits of having individual retirement accounts. The ideal retirement plan consists of a balanced saving to spending ratio. When a retirement plan is not balanced, people find themselves on either end of the strategy spectrum, the red curve or green curve. However, Olson Associates has implemented a third curve, which allows a future retiree to save for retirement while also enjoying their earnings now.
The Red Curve
Have you ever walked into a McDonald’s or the grocery store and wondered why the cashier is still working at 78 years old? This is the reality for those on the red curve. The reason for this was the person failed to save accurately for their retirement. Many do not consider health conditions and other unexpected financial responsibilities that could occur later in life. Our goal is to help you create retirement plans that can sustain emergency situations while still providing you with the lifestyle you worked for.
The Green Curve
On the other end of the spectrum is the green curve, where retirees save so much money there is no way they could possibly spend it all during the rest of their lifetime. This can happen for a variety of reasons, such as fear of spending, not leaving enough to future generations, or accumulating faster than they can spend. These are the people who have surpassed their retirement goals but never reap the benefits of their financial literacy. You may be asking, “How is it a problem to have too much money?” The problem arises as you are building your retirement plan because you are forcing yourself to live a frugal lifestyle to prepare for the future. In other words, you are waiting until retirement to do the things you have always wanted to do.
The Blue Curve
The middle curve is what every retiree should strive for. Also known as the blue curve, it is the perfect balance between spending and saving throughout retirement. The blue curve is what Olson Associates helps each client implement into their financial planning strategy. With the blue curve retirees can go on their dream vacations or make a luxury purchase, while not having to worry about running out of money later in retirement. This curve bases cash flows on the changing needs of retirees as they get older. The natural slowdown that occurs for each retiree is where the curve begins to dip down, as they are no longer going on vacations or making larger purchases. As a result, the need for a growing cash flow is not as exponential as it once was in the beginning of retirement. At Olson Associates we work with each of our clients individually to find their perfect balance and get them on the blue curve.
Everyone deserves to live a retirement lifestyle that fulfills all their desires but still maintains the necessities to life. Retirement looks different to everyone and can be an overwhelming time. Let Olson Associates help take some of these worries away and help ensure you get a blue curve retirement plan. As we say, we want all retirees to be in a blue ocean of calm. Start today and prevent yourself from being on the red curve. Contact us at 770-740-8744 or visit our website https://www.olsonretirement.com/.
Securities offered through Osaic Wealth, Inc. member FINRA/SIPC. Investment advisory services offered through OLSON ASSOCIATES. Osaic Wealth is separately owned and other entities and/or marketing names, products or services referenced here are independent of Osaic Wealth.