Growing older requires most of us to think about the road ahead and things we have never approached before. A big one is the “R” word. Yes, retirement starts to get closer and retirement isn’t for sissies! If you have taken the time to prepare, then it’s probably an exciting time. But if you didn’t prepare, the thought of retirement can fill you with a sense of dread.
First we look at retirement income. The inflation adjusted income provided by Social Security makes it a significant retirement asset. Especially with the decline of guaranteed pensions. Because they had historically been a major income source, maximizing your Social Security benefits is a crucial foundation to building a successful income plan. Do you know when to file for benefits and which filing strategy best meets your needs?
Second, health care expenses are predicted to continue increasing. Because of this, a health care strategy containing provisions to meet your health care costs, and possibly long-term care costs is also important. According to a 2018 Fidelity study on Retiree Health Care Cost Estimate, a 65-year-old couple who retired in 2019 should expect to spend $285,000 in health care and medical expenses throughout retirement. For single retirees, health care cost was estimated at $150,000 and for men at $135,000. Do you have a health care strategy?
Third, you also need to understand the relationship of risk (volatility) to return. Your income strategy should take into consideration different types of investments for short term and long-term needs. In summary, you need to understand how your final income strategy may perform in different market environments.
Finally, do you have a tax strategy?
Download Retirement Isn’t For Sissies now to answer these questions and more.