Your Retirement Income: Prepare For Later | Fidelity

Watch this video to learn how couples can manage their retirement income with Fidelity when they are a few years away from retiring. To find more resources about retirement income, visit: https://www.fidelity.com/calculators-tools/retirement-income-planner To see more videos from Fidelity Investments, subscribe to: https://www.youtube.com/fidelityinvestments Facebook: https://www.facebook.com/fidelityinvestments Twitter: https://www.twitter.com/fidelity Google+: https://plus.google.com/+fidelity LinkedIn: https://www.linkedin.com/company/fidelity-investments Meet June and Ed. Both are 62 years old, and work full time now, but they can see retirement around the corner in 3 years. They have done a good job with their investment strategy so far, saving diligently over the years. Now that retirement is getting closer, they want to make sure that they are preparing for what lies ahead. Fidelity is ready to help June and Ed prepare for retirement, and learn how to manage their money once in retirement in a way that is comfortable for them and gives them confidence. While there are many different ways to interact with Fidelity – online, via phone, or in person - today the couple is meeting at their local branch with Ellen, a Fidelity investment professional. It is the first in a series of conversations that the couple will have with Ellen. It’s an important time for them to work together as a team, so the focus today is for the couple to share with Ellen their retirement goals and concerns – to help Ellen get to know June and Ed, and their financial objectives. In their next conversation, Ellen will review Fidelity’s analysis with the couple. Then they will work together on how to make June and Ed’s retirement income plan come together, using Fidelity’s best thinking. June and Ed share with Ellen that they do not have an extravagant vision of retirement. Ed wants to spend more time golfing with his friends, and June plans on enhancing her home garden. Right now, their big splurge every other year is to rent an RV and visit national parks and museums that peak their interest. Once retired, they would like this to be an annual event. Bottom line – they want the freedom to enjoy their leisure time without worrying about finances or spending a lot of time managing their investments. They do mention that they have not ruled out working a bit in retirement – they just don’t want long hours or commutes. Ellen learns that the couple has two grown children, both married and established in their careers. They feel that leaving their house behind, free and clear, should be enough of an inheritance. June and Ed are in good health, so they think a lot about how long they will live – many of their relatives lived into their late 80s and early 90s. So naturally, they want to ensure their money lasts throughout their retirement years. In other words, have they saved enough? One thing does keep the couple up at night – their concerns around market volatility. They feel anxious about what the stock market may do over the next three years before they retire, and how this volatility may impact the value of their retirement portfolio. What if there is a big decline and their portfolio drops significantly? While they’ve read up on how it is important to stay invested in the market in order to have growth and make their savings last, it still troubles them. Ellen understands these concerns – they are very real. She will introduce the couple to some different strategies on how to address, and minimize, market risk. Ellen starts to take a closer look at the couple’s financial picture - income, savings, and expenses. First, they discuss the income the couple expects in retirement. Neither has a pension, but they have not ruled out working part time. Both plan to begin taking Social Security at age 67, but question if that is really the right time to do so? Ellen prepares June and Ed for the idea that they will likely need to create cash flow in retirement from their savings once they stop working full time at 65 and loose that income stream. Next, they review their savings. June and Ed have saved diligently, and have accumulated approximately $950,000 in savings across retirement accounts, non-retirement accounts and a reserve fund. [...] Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, Rhode Island, 02917 700496.6.0

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