Ask the expert: Planning for retirement

WEBVTT FORECASTCOMING UP IN A FEW MINUTES.rtJAMES: WHEN IT'S TIME TO RETIRE,REPLACING YOUR WORK PAYCHECKWITH A RETIREMENT INCOME ISN'TAS SIMPLE AS IT SOUNDS.CHINH: CREATING A PLAN CAN HELPSMAKE SURE YOUR MONEY WILL LASTTHROUGH YOrtUR WHOLE RETIREMENT.AND PAT RICKTTS IS HERE TODISCUSS HOW TO CREATE ARETIREMENT INCOME PLANIT IS NOT THAT EASY.rtPAT: NO, IT IS NOT.CHINH: FIRST, WE ARE TAUGHT TOSAVE FOR OUR FUTURE, BUT WHENTHE DAY FINALLY ARRIVES TO STARTDISTIBUTING THE MONEY rtWHAT DOES A RETIREMENT PLAN LOOKLIKE?PAT: IT IS TAKING A PERSONALSTRATEGY AND ASKING HOWrt TOCREATE SAVINGS INTO INCOMESTREAM.IT STARTS WITH CHAIRMAN IN WHATARE THE OVERALL NEEDS AND WANTSON A MONTHLY BASIS.PLAN OUT YOUR MONEY.rtIDENTIFIED IN COURT - INCOMESOURCES AND UNDERSTAND HOW THESAVINGS WILL BE APPLIED ON ACASH FLOW BASIS.rtTHEN DETERMINE WITHDRAWAL RATE.IS IT SUSTAINABLE IN RETIREMENT?JAMES:rt HOW DO YOU BUILD THEPLAN?PAT: START WITH THE BASICS.WHEN DOES MIGHT RErtTIREMENT DATE?WHAT ARE THE NEEDS AND WANTS INRETIREMENT?WHAT WILL BE THE INCOMrt SOURCES,SOCIAL SECURITY, PENSION?GET A SECOND SET OF EYES.LOOK AT THE EXIT -- ASSETS.rtBUT YOUR ASSETS THROUGH A STRESSTEST.JAMES: I'M SURE IT CAN BE SCARYGOING FROM A PAYCHECK TOrtCREATING FROM SAVINGS.WHAT ELSE CAN THEY DO?PAT: IT IS A MIND THAT SHIFT YOUWILL BE FACED WITH, DO Irt LEAVEMY CURRENT ASSETS IN ARETIREMENT PLAN DO I TAKE A LUMPSUM -- LUMP SOME DISTRIBUTION?rtYOU'LL HEAR MANY DIFFERENT TERMS.YOU MAY BE FACEDrt IF YOU HAVE APENSION OF HOW TO WHY TAKE THEMONEY OUT AND WHICH DO I CHOOSE?YOU WILL BE FACE WAS SO MANYDIFFERENT OPTIONS THAT YOU NEVERTHOUGHT OFrt DURING THEACCUMULATION YEARS, AND YOU MAYBE USING DIFFERENT INVESTMENTVEHICLES THEN USED TO.WHEN IT COMESrt DOWN TO IT, YOU'LLWANT TO BE METHODICAL ANDCALCULATED WITH A PERSONALIZEDAPPROACH TO MAKE SURE WHAT --YOU ARE CREATING THErt RETIREMENTMONEY.