This is often the time of year when we start to get calls saying I am thinking of retirement and would like to discuss a plan.
For some people it is something they have been working towards and anticipating but for others it is intimidating. There are many decisions that need to be made and a lot of opinions on the right way to do things.
As a Financial Advisor, I think it is always good to get some help. I, along with my team, sit down and discuss a variety of topics that need to be addressed. There is no one size fits all plan. It needs to be tailored to you and your individual needs.
LET’S START WITH THE DO’S..
- Do sit down with someone sooner rather than later.
- Do have information such as income sources, a budget and an idea of the lifestyle you want to have.
- Do have a plan for when you would like to claim your Social Security benefits. There are pros and cons to taking at 62, 65 or your full retirement age. You can also let it continue to grow to age 70, if you do not need it right away. 70 is the longest you can defer it.
- Do some research on Medicare Plans. Again, no one plan suits all. Your health, budget, and lifestyle all play a part in the decision.
- Do prepare for unexpected occurrences. It is always good to have an emergency fund in a separate account that is liquid, and you can easily access such as a savings or money market account.
- Do put a plan in place that you can stick to. It is important to be realistic and honest about your budget and goals. Even the best plan needs to be reviewed on a regular basis. Once a year is a good goal to review – based on factors such as life happenings, the market, and economy.
NOW FOR THE DON’TS..
- Don’t ignore inflation. It is not always obvious and can over time affect your savings and income.
- Don’t ignore taxes. Tax planning needs to be considered in your years leading up to retirement, as well as the years in it.
- Don’t get emotional. Although we all experience feelings when things are going right or wrong, a solid retirement plan should help reduce anxiety during these times.
- Don’t retire from something but to something. Retirement gives you the opportunity to explore other ventures, that you may have not had time for in your working years.
A good tip for this month of March is..
A successful retirement can be challenging. Use common sense, talk with professionals, build a solid financial plan and enjoy your retirement years.