Deciding how and when to draw down your savings can have a significant impact on how comfortable you are during your retirement. It is important that you start developing a financial plan for retirement.
In this article, we take a look at a solution to create a smart, safe, and personalized drawdown plan for your retirement.
Planning for the unknown
Drawing down your assets in retirement can be a confusing and challenging task because there are many key ‘unknowns’. For example, how are you supposed to know:
- How long you and your spouse will live?
- What sort of return your investments will make?
- How much money you will need for living and medical expenses later on?
- And, what the property market will look like in five, ten, or fifteen years?
The truth is, trying to calculate exactly how long your money will last is an impossible exercise. Yet without a strategy, you may have to endure the extra stress of your retirement nest egg not lasting as long as you need.
So what’s the solution? We believe it’s Financial Mappers!
Your personalized financial solution
Financial Mappers is a one-of-a-kind dynamic modelling tool for investors with quick and straightforward inputs, clear graphs, helpful calculators, and easy to read reports.
Our advanced program is powerful enough for the serial investor, yet simple enough for beginners and casual users. Using Financial Mappers you can create a personalized drawdown plan and provide you with a financial roadmap for retirement. Some of our favorite key features include:
- Flexible drawdown planning
The ability to input the year you would like to start your retirement drawdown and how long you would like your funds to last. With a simple ‘activate’ checkbox, our calculators can prepare a detailed graph to test the feasibility of your plan (i.e. if your funds will last that long).
- Planning for goals and milestones
The ability to allocate the amount you want to spend over different time periods in your retirement years. For example, if you wish to purchase a new car in Year 5 or renovate your home in Year 10, you can budget for that in your plan and adjust your drawdown accordingly.
- Simulating economic downturns
The ability to use ‘risk sequencing’ to predict how your drawdown might be affected by an adverse event, like a collapse of the share market or a personal loss. We have in-built 10-year economic cycles and historical data so that you can easily prepare for any outcome.
Financial Planning Software for Retirement – Financial Mappers
Watch our video on how to manage income streams in retirement to learn more about how Financial Mappers can help you prepare for your retirement.
Glenis Phillips SF Fin – Designer of Financial Mappers
Here are some additional articles I have found for you:
- A complete guide to planning for retirement (The Motley Fool)
- Retirement planning checklist (Choice)