The 4 Pillars Your Retirement Plan Must Include: Income, Growth Potential, Protection, and Liquidity

Are you one of the many retired Americans who feel uncertain about your financial future? You’re not alone. According to a recent survey, 32% of retired Americans don’t feel like they have enough saved up, and a staggering 58% have no idea how long their nest egg will last. It’s clear that creating a solid retirement plan is more important than ever in today’s ever-changing financial landscape.

So, what makes a retirement plan successful? According to experts like Jaqueline Schadeck, CEO at Golden Wealth Strategies, every retirement plan needs to have four key pillars: income, growth potential, protection, and liquidity. Let’s break down each of these pillars to understand why they are essential for a successful retirement plan.

Pillar #1: Income
Generating income is the foundation of any successful retirement plan. You need to have enough income to cover your expenses both now and in the future. Without a steady stream of income, it can be challenging to enjoy your retirement years to the fullest. Planning for how you will earn money to support yourself and your family after you stop working is crucial for a comfortable retirement.

Pillar #2: Growth Potential
As we live longer, our money needs to work harder for us. Investing for growth is essential to ensure that your savings outpace inflation and rising costs. Your retirement funds should be growing consistently over time to provide you with a larger nest egg for your golden years. It’s important to invest in a way that can offer higher income over time to match rising costs and maintain your standard of living.

Pillar #3: Protection
In today’s litigious environment, unexpected lawsuits or medical bills can derail even the best retirement plans. Income protection, such as guaranteed income sources like Social Security or annuities, can provide a safety net for retirees. Asset protection is also crucial, as market-based investments can experience volatility and losses. Setting aside assets that are not correlated to the market can help protect your finances in case of market downturns.

Pillar #4: Liquidity
Having easy access to your funds is essential, especially in retirement when unexpected expenses can arise. Liquidity ensures that you can ride out market storms without sacrificing your long-term financial goals. Cash in a checking or savings account is one of the best options for liquidity, providing flexibility without waiting for the next paycheck or payment.

In conclusion, these four pillars – income, growth potential, protection, and liquidity – are essential components of a successful retirement plan. Each pillar plays a crucial role in ensuring your financial security and peace of mind as you transition into retirement. By incorporating these pillars into your retirement plan, you can better prepare yourself for a comfortable and worry-free retirement.