You’ve worked nearly your whole life to be able to enjoy this stage. This is the life phase where you don’t have to set an alarm clock unless you have an early tee time or even remember what day of the week it is.
While life should be carefree, you do worry because you realize there is no longer time to recover from a major financial setback. Have you saved enough to support a retirement that could last 30 years? What are your healthcare options? What if you or your spouse needs daily assistance? Can you afford to help your kids and grandkids the way you’ve imagined?
Here are 5 to-dos to help ensure your retirement is everything you dreamed:
Meet with a Financial Advisor
Don’t let fear stop you from sitting down with a financial advisor. We have software that can analyze nearly any situation.
We also help with major financial decisions like should you keep the rental house or sell it and invest the money? Can you afford a vacation home?
A visit will give you piece of mind knowing that action has been taken to reduce volatility as much possible in your portfolio.
Maximize Social Security
There are several ways to take social security. You’ve paid into this benefit all your working life. You deserve the maximum payout.
You can take a benefit based on your spouse’s earnings. You can take it based on your earnings. Divorced and widowed people also have options.
You can delay social security until age 70 and increase your monthly benefit or you can take it at 62, thus reducing your monthly benefit amount forever.
We show you how each option will affect your long-term retirement so you can make the most informed decision.
Consider Income Needs
Know the difference between your needs (necessities like housing, food and healthcare) and your wants (discretionary costs like vacations, hobbies and summer home).
The majority of your income needs to be from steady sources like social security, pensions and annuity payouts. These need to cover your needs.
Your wants can be covered through market-dependent investments, such as stocks and mutual funds. It’s easier to revise your vacation plans during a down market than to stress about paying your electric bill.
We analyze income sources and determine ways to create a steady stream of money to pay for your needs. Then we determine what other type of long-term investments will give you an income stream, while providing for growth to keep inflation at bay.
Plan for Long-Term Care
One financial strategy is preparing for the unexpected. As we age, chronic health conditions can affect not only our quality of life, but our savings as well.
Long-term care is a fact of life. On the LongTermCare.gov site, the U.S. Department of Health and Human Services estimates that 70% of people turning age 65 will require some period of ongoing care during their lifetime.
Long-term care coverage can ease the burden on your family, cover the financial costs for care, possibly allow you to stay in your home longer and provide a higher quality of care.
There are different ways to obtain coverage. Generally carriers base premiums and benefits on your age and health so it’s important to obtain coverage before you need it. Each method has different pricing and pros and cons. A discussion on your needs is a starting point.
Create Your Legacy
You’ve saved enough to fund retirement. You planned for unexpected emergencies and now it looks like your money will outlive you. Congratulations! This is the best case scenario. So what would you like to do with that money?
Some people use the surplus to give back to the community through their favorite charity. Others leave it to children and grandchildren. This is your opportunity to make a difference.
Not only should you collaborate with a financial advisor, but also an estate planner and CPA. There are tax implications to the choices you make. While we do not offer tax or legal advice, we do create a team approach and work with your estate planner and CPA to ensure your plan is implemented seamlessly.