Leading Edge’s own, co-founder and CFO, Kevin “The Professor” Gormley, CPA, PFS, CFP® is our special guest today. 

We think of a 5-year runway to take off for retirement.  It can take that long to mentally prepare for the end of your career.  It also may be enough time until retirement to make significant course corrections if necessary.  At a minimum, this is the time to make sure you run that last Before Takeoff (retirement) checklist, and you are ready for a great retirement!

A quick peek into the discussion with the Pilot Money Guys and “The Professor.”

Understand the difference between risk tolerance and risk capacity.  You may not have the capacity for investment risk at age 60 due to your income requirements in retirement.  

You should have an idea, the more clarity the better, on how much you want or need to spend in retirement.  You need to know if your portfolio and other sources of income can support your desired level of lifestyle spending in retirement. 

What is the best way to ensure you do not run out of money in retirement?  One way is to use a Monte Carlo analysis.  But you must understand what the results actually mean.  

As you head into retirement, it may be beneficial to have the required spending needs in retirement covered by guaranteed sources.  This includes military pensions, social security, and possibly annuities.  

The good news is the annuity marketplace now offers commission-free annuities!