Shawn Kelley was appointed Managing Partner Northwestern Mutual Cincinnati in March 2008. Shawn is the 10th Managing Partner in the Cincinnati region since 1865. The organization has $125MM in total premium, $2.8B in Assets Under Management and the total amount of life insurance Inforce is $18.3B. Dividends paid out in 2013 totaled $60MM to approximately 49,000 clients.
The definition of financial security changes as we age: The needs and wants of a newly married 30-year old are, not surprisingly, very different from those of a 70-year-old retiree. There is one thing that stays the same, however: planning and achieving your retirement goals is a lifetime process — one that requires you to first build assets and manage retirement risks for the future, and then to turn those assets into a stream of income in retirement that will last as long as you need it to.
To understand how these steps work throughout your life, consider the following:
Stage 1: Saving for Retirement
The key to affording the lifestyle you want in the future is maximizing your savings opportunities now. That’s because, by saving as much as you can, as soon as you can, you can put time on your side. Time to plan, time to weather market cycles and, most importantly, time to let your savings and their earnings grow and compound.
The specific investment strategy you use to maximize your savings will vary with your age. In general, the younger you are, the more aggressive your investments can be. How can you get on the right retirement path? Consider the following steps.
Stage 2: Approaching Retirement (10-15 years before retirement)
As you approach retirement, begin to focus on the kind of lifestyle you want. Share your dreams with your spouse; now is the time to work out any differences you may have about how you’d like to spend your time once you stop working.
Financial experts often recommend that you “practice” for retirement. For example, if you’re thinking about relocating to a warmer climate, try visiting there several times – and not just during high season. What other key issues should you consider?
Stage 3: Entering Retirement (3-5 years before retirement)
For many, retirement represents a new and exciting chapter in their lives. To prepare, you’ll need to shift from accumulating assets to creating a plan that turns your savings into a steady stream of income that supports your lifestyle for the rest of your life. Consider these steps to get started:
Stage 4: Living in Retirement
Retirement planning doesn’t end once you stop working—your needs and wants, the economy and the financial markets are likely to change over time. As a result, it’s crucial to review your retirement plan on a regular basis.
Financial security is the confidence that comes from taking action today to provide for tomorrow. It’s an ongoing process during which you should be disciplined but flexible to adapt to changes over time. Working with a qualified financial professional can help you manage these decisions as you approach, enter and live in retirement.
Article prepared by Northwestern Mutual with the cooperation of Shawn F Kelley. Shawn F Kelley is a Managing Partner with Northwestern Mutual, the marketing name for The Northwestern Mutual Life Insurance Company (NM), Milwaukee, Wisconsin, and its subsidiaries. Shawn F Kelley is based in Cincinnati, OH. To contact Shawn F Kelley, please call (513) 366-3600, e-mail at s.kelley@nm.com, or visit cincinnati.nm.com.