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Wondering about Retirement, the RIGHT questions to ask before Retiring!

Wondering about Retirement, the RIGHT questions to ask before Retiring!

July 08, 2020

Are you thinking of Retiring? You may be mentally or emotionally ready but are you FINANCIALLY ready?

 Retirement is a truly exciting time in life. It is a time to begin living life on our own terms. If you are thinking about retiring in the next few months, the next year or even the next few years, you most likely have many questions on your mind that are leaving you feeling uncertain and uneasy. Let us walk through three common questions that are often top of mind for individuals facing retirement.

1. Have I saved enough money? Will I out outlive my savings?

2. When should I begin taking social security?

3. How should I invest my money, so I can begin taking an income stream?

 #1 – Have I saved enough money? Will I outlive my savings?  

 Despite what the media, your family or your friends tell you, there is no magical number you need to have saved in order to ensure you can retire and live the life you desire. How much we need to have in our savings and investments, is very individualized and depends on you and your lifestyle. HERE is how I approach this very common question…

 START with asking yourself these questions:

  • What are my goals? Are there things I want to do or places I want to see? Are there major home projects I want to accomplish?
  • What are my VALUES?
  • What does the life I desire to live look like?
  • Is leaving a legacy to my children, family, friends, or a charitable organization important?

 THEN dive into your money management skills (AKA Budget):

  • What will be your total income from Pensions, Social Security, or other retirement benefits?
  • Do you plan to work part-time or have another income source of income for example rental properties?
  • What are your average monthly expenses?
  • Have you budgeted for the increasing costs of health insurance?
  • Any big future expenses that need to plan for: a new car? Sale of home and downsize? Home renovations, etc.
  • What are your liabilities including student loans, credit card debt, home debt, car loans.

 By taking your total income and subtracting out your monthly expenses and liabilities you will arrive at a number that needs to be supplemented by your investments.

 #2 – When should I take Social Security?

 At age 62, full retirement age, or at age 70?

             Of course we cannot predict how long we will live or what the status of our health will be in the future but here are some important questions to consider…

 How is your health now?

Are you planning to continue working either part-time or full time? If you file early then you must consider how much you plan to work because that will affect your benefit amount.

Have you met your savings and investment goals?

Have your considered healthcare costs for Medicare?

 The good NEWS is that you do not have to figure this out alone, let’s design a Social Security Strategy for you! We have tools that will allow us to optimize your social security benefit and then arrive at a recommendation that is right for you.

 #3 - Building a Retirement Income Stream

 If I take $X out of my investments per month will I be okay? You might feel overwhelmed and question where to start when it comes time to determine how to begin taking income from your investments on a regular basis. But for me this is the fun part and this is why Financial Planning is so important.

 A comprehensive Financial Plan that is designed around your goals and values and that puts all the pieces of your financial life together is essential.  In designing your plan we also test for the “WHAT Ifs” in life.  “What if I sell my house and decide to downsize? What if we have a year or two with negative market returns? What if “XYZ” happens and I need to withdrawal a significant amount of money how will my plan be impacted?”  

Are you ready to take the next step let’s begin PLANNING WITH PURPOSE!

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