Once you’ve retired and the paychecks stop, how will you make ends meet? Recently my colleague Angela Coleman and I had the opportunity to discuss this very topic with The Washington Post. Click here to read the article.
The article offers helpful tips to soothe anxieties which accompany the transition into retirement. While we all recognize there is no single approach that guarantees a worry-free retirement, there are a few fundamentals that should be part of your retirement strategy.
First, make sure you have a plan. Prior to retirement think about what you want to do and how you want to spend your time once your working years are over. Setting some goals for yourself will then help you focus on specific steps needed to achieve those goals, and naturally that will lead to creating a budget.
Second, get help from an advisor. The Washington Post article makes it clear that retirement income planning is very complex. While you are planning your transition seek help from the experts who can guide you through Social Security, Medicare, investment and tax related issues. Even if you are confident you are making all the right decisions it doesn’t hurt to have an expert review your plan.
Third, be mindful of specific risks. While not explicitly stated in the article, retirees are subject to special types of risks that can potentially derail an otherwise sound plan. For example, if your investment strategy doesn’t emphasize enough growth-oriented assets then your purchasing power over time could erode due to inflation. Since retirees spend a significant amount of their financial resources on health care items – a category with much higher rates of inflation than typical consumer goods – it is important to ensure an investment portfolio continues to grow.
Our Unified IncomePlan is designed to keep you on track for a successful retirement. Our Fiduciary Investment Advisors will help you develop a plan to ensure you achieve your retirement goals. Importantly, we take steps to mitigate those unique risks to give you peace of mind.