Retirement Planning

Retirement Planning.

No matter what your financial situation is, preparing for retirement can be difficult and time consuming. Every day, more and more Americans are finding themselves face-to-face with the difficult process of having to begin preparing for a comfortable quality of life in post-working years.

Comfortable can mean different things to different clients. Our goal at Capstone Investment is to eliminate your anxiety about retirement planning and work with you to create a roadmap on successfully achieving your retirement date with as little risk as possible.

retirement partyMany of the clients we work with come to us initially with the idea that in order to retire, you must first be wealthy. Retirement is more about financial security than wealth. We all know of someone who became briefly wealthy from a lucky bet, an inheritance, the right job at the right time, or an exceptional investment. The key, however, is to achieve financial security before you intend to retire and to use that security as a way to stay wealthy.

Helping You Succeed in the Three Stages of Retirement

Because we lead such busy lives, most individuals don’t think about retirement until they have reached an age where friends and coworkers begin discussing timelines and calculating costs for life after employment.

At Capstone Investment, we are serious about getting our clients to retirement. So serious, in fact, that we track the number of individuals that get there. We commit to each and every one of our clients looking to retire and offer them a customized road map to follow every step of the way.

Stage One: Accumulation

In order to retire comfortably, you first must determine what you need to earn to get to your goal. Every investor has a different financial goal in mind when the term “nest egg” gets brought up. This is because every investor saves and spends at a different rate. Before you can successfully retire with a nest egg that fits your lifestyle, you first must identify your earning potential and build your portfolio with the intention of reaching retirement on time.

Stage Two: Pre-Retirement

We often hear our clients asking “Can I retire early?” “When can I retire and will I have enough money for retirement?” In order to help our clients achieve their goals of reaching retirement comfortably, we first must calculate their funded income. This is the income they want and need in retirement in order to maintain a life of significance.

Stage Three: Spend Down

Preparing for retirement doesn’t necessarily mean you have to downsize your home or give up your motorcycle. Reducing your spending can come in other forms and if done correctly, may be such a minimal impact to your daily routine that it goes nearly unnoticed.

There are many ways you can rework your lifestyle to spend less in retirement. From simple strategies such as dining out less or reducing costly vacations to being mindful of the accounts you plan to withdraw from, reducing your spending in your post-working years is manageable with the right process in place.

Advice for Every Account
If you have been saving accordingly, you’ve likely accumulated a handful of retirement accounts by the time you near the age of retirement. Whether in the form of individual retirement plans like traditional IRAs, Roth IRAs, and rollover IRAs, or employer-sponsored plans like 401(k)s, Roth 401(k)s, 403(b)s, of Thrift Savings Plans, you have taken the time to contribute towards life after work for many of your years employed.
Figuring out what to do with these accounts as your retirement date closes in can be overwhelming. Our experts can help you understand the best timing to withdraw from each account, and when it may be wise to rollover or convert accounts.
Understanding Your Risk to Retirement Date
Your risk to retirement date is the amount of time it would take your portfolio to recover in retirement after a market decline. Much of this is determined by the volatility of your portfolio.

We believe the greater the volatility of the portfolio, the more significant the retirement date risk is that goes along with it. In order to keep volatility low, we implement a number of ways to help manage retirement date risk for individuals looking to secure financial stability in retirement.

Proactively managing portfolio volatility can be a meaningful way to manage retirement date risk. For more prospective retirees, the goal of retirement is a two-part equation. The first part of the equation involves a target dollar amount, which is the actual amount needed to cover spending in retirement. The second part of retirement involves the target date the amount needs to be accumulated by in order to retire comfortable. Without part one in place, the problem cannot be solved.

Our job is to organize your accounts and develop a saving and investing strategy to not only lower your anticipated retirement date, but the risk associated with it as well. A volatile portfolio that produces poor results can end up forcing a hopeful retiree to work longer and save more as the portfolio recovers. We often encourage our clients to continue working until they have either reached their accumulation goal or until the market improves before exiting the workforce.

Are you ready to take your first steps towards retirement planning? If so, contact our team of financial advisors today. We can get you on the right track to reaching financial security so you can enjoy retirement comfortably.


Our Services include Financial PlanningRetirement PlanningInvestment ManagementRisk Management & Wealth Management in and around Colorado Springs, CO.

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