Soon to be Retirees – What to Know When Plans Change
You have worked for 25+ years and are approaching retirement, however, a life change arises and brings uncertainty. Maybe it is a loss of employment, a health crisis of a spouse, the kids need you to assist with daycare needs for the grandchildren, we have seen a laundry list of trigger events over the years. Whatever it is, you are asking yourself, now what?
What does this mean and how does it relate to your plan, especially in the late stages of your career. What scenarios are even possible given the issue at hand. Maybe you would like to assist with childcare or spousal care, however, you may not be in a position to do so. Either way when financial plans change it is a call to action.
Financial Tip #1: Assess your Resources
Build out your net worth statement to complete a one-page view of your wealth. Make a complete list of your assets and liabilities. Understand how these assets will work in retirement. Take inventory of all your investments and assess your overall investment allocation. Have an appropriate investment allocation that is aligned with your long-term needs and goals.
Financial Tip #2: Outline your Needs, Wants and Wishes
Take time to visualize and assess what your future retirement could or should look like. Outline your general expenses or needs (“think basic living expenses’) such as house-related maintenance, mortgage/rent, utilities, cars, insurance, groceries, etc… Next think about miscellaneous annual expenses or wants such as vacations, travel, gifts to children or grandchildren, golf trips or family outings. Finally consider the what if’s or wishes such as weddings, European vacations, buying a boat or a collectible auto. After your goals are defined and accounted for, you will be able to drill down into various scenarios. You can begin to make choices that align with your resources.
Financial Tip #3: Create a Confident Financial Plan
Work with a Certified Financial Planner to understand your income needs, your resources in retirement, and how markets may impact them. Review and establish an investment allocation that is appropriate given your circumstances. You should then be able to answer the original question you had regarding the change at hand. The plan should illustrate how the timing of your retirement impacts your income amount, Social Security strategy, and healthcare expenses over time. Knowing all of these numbers upfront will have you prepared and comfortable for years to come.
We have seen how life’s events will increase your financial questions and uncertainty. Plan ahead and build a solid foundation heading into your distribution years. One of WPC’s core commitments is to guide the retirees confidently into retirement. We have a library of blogs, resources, and client stories available at www.wealthp.com/resources
Here is another blog we shared for retirees I Miss My Monthly Paycheck. Help! – Wealth Planning Corporation
If you would like to work with an advisor, we have lead advisors available for a complimentary Discovery Meeting. During a Discovery Meeting it is an opportunity to meet and ask one of advisors your financial questions so you can determine if working with WPC would be worthwhile.
Read more about our services and investment approach at www.wealthp.com
