So you are in retirement and are searching for a less stressful approach to managing your money. Does that sound like you? If so, then you are in the right place. What you have probably found in your search for me is that much of the financial advice out there is about how to accumulate money – am I right?
The advice is focused on people not yet retired or who don’t need the money they have. Much of it seems to be based on hypothetical returns and complicated financial products like annuities. So whether you have a lot of money or less than you had hoped for, I am here to help point you in the right direction.
Let’s get started with The Revised Retirement Planning Checklist
Lists are great for getting stuff done and can be very helpful when it comes to retirement.
Understand Your Cash Flow Needs
The very first step is to know and understand your cash flow needs. In other words, how much money do you need per year to cover all your planned expenses from Jan 1 through Dec 31?
You’re going to want a retirement advisor who is knowledgeable about what you need. Many investment advisors are only focused on stock market returns and often overlook these details.
Know Your Chronological Cash Needs
This is taking into consideration big-ticket items that are separate from your regular cash needs. This would include such things as car replacements, home improvements, etc.
You’re going to want to make sure your retirement advisor is considering life events outside of just your income needs.
Fire Your Financial Advisor
Well, maybe. There are some solid financial advisors out there who I believe truly have the best interest of their clients in mind. Meanwhile, there are others I would consider firing.
How do you know if your financial advisor is the right fit for you?
Let me explain it like this, if you went out to purchase an Audi, would you go to a Toyota dealer? If you were to go to the Toyota dealer and ask for an Audi, what would they say? Imagine if there was an auto dealership that had every make and model vehicle available. Would the salesman you are working with really care which vehicle you purchased?
Watch out for financial advisors who only sell one thing and are negative about everything else. I have put together a complete checklist for you here.
Adjust Your Exposure to Market Risk
It may be tempting to keep striving for big market gains, but when you are approaching retirement, it is not the time to be taking unnecessary risks. Making the switch from accumulation to preservation is the smart choice.
Be careful here! If you have never had your risk tolerance tested, then you will want to do this now.
We have a tool in place to help you identify your risk tolerance. It’s free and you can have your answer in a minute or two.
Know Your Tax Exposure
In retirement, your income sources and tax situations will change. It is not safe to assume that your tax situation will be the same in retirement. You are going to want to have your tax advisor meet with your retirement advisor to make sure you’re all on the same page.
Think About Your Legacy
You have worked a lifetime (literally) to accumulate what you have. Make sure you organize everything to make it easy on your family.
Plan for Long-Term Healthcare
You will want to evaluate your options for protecting yourself and your family from the high cost of long-term healthcare.
Consolidate Your 401(k), Pension, IRA and Other Accounts
If you have multiple retirement accounts all over the place, you may want to consolidate them. Managing multiple accounts can be cumbersome; worse, it can result in a situation where you don’t see the big picture of your retirement portfolio.
Consolidation can make life much easier and reduce the enormous amount of paper you receive every quarter.
Please do yourself a favor and don’t skimp or take shortcuts with your revised retirement planning. Life expectancy is going up, and you’re likely going to be retired for a very long time. During this time, you’re going to need enough money to last you through your years – and there are many factors like inflation, taxes, and markets that can affect your portfolio.
If you’re not sure that you can retire and have enough money to last the rest of your life, I’m happy to help you crunch the numbers.
contact me to learn more about what I can do for you.
Questions? I’m Here to Help.
If you have any questions, I’ll be around to answer them – contact me anytime.