The key to a confident retirement today is twofold: KNOWLEDGE AND ACTION. Knowledge begins with a clear understanding of your financial picture, knowing where you’re starting from and identifying your unique retirement goals. It’s also important to grasp the challenges you might face during retirement. Action is taking steps to put you on the path toward your goals and overcoming the challenges that threaten to derail them.
Let’s face it: The days of relying on Social Security and pensions to fund retirement are disappearing. As financial professionals, it’s our job to provide a strategy that helps ensure your hard-earned money doesn’t follow suit. Read on for a basic understanding of the financial challenges you may face down the road. Then, act on that knowledge by meeting with us for a retirement income analysis.
FOREVER YOUNG
Americans are living longer. On average, men who have reached age 65 can expect to live an average of 84 years, while women who have reached age 65 live an average of 86.6 years. Longer lives mean a need for income that will cover the additional years. While many retirees have eliminated some of the costs from their working years, living an active lifestyle often creates new expenses to add to the budget.
How long will you live and how much money will you need to live comfortably until you pass away? If you knew the exact answers, planning for lifelong income would be a much more straightforward process. Instead, a solid retirement income plan must address a variety of possible scenarios, with the goal of striking a balance between maximizing annual income and ensuring you won’t run out of money in your golden years.
Through a retirement income analysis, a financial professional can help you consider strategies for maintaining finances during retirement. The objective of this analysis is to help determine how much income you’ll need every month in retirement, explore ways to potentially reduce tax liabilities and to help ensure your money doesn’t run out after you stop working.
DOCTOR, DOCTOR, GIMME THE NEWS
For many people, health care is one of the largest expenses in retirement. When building a retirement income plan, a financial professional will ask questions that may provide clues to your health care needs during retirement. Do you have an existing medical condition that requires extensive treatment or an array of prescriptions? What is your family history for health and longevity? These factors will all be considered and put into play in your retirement strategy.
TAKE GOOD CARE OF MY BABY
Longer lives also bring about an increasing need for long-term care. On average, about 70 percent of Americans turning 65 will need long-term care at some point.
Your financial professional can assist you in structuring a long-term care strategy that accounts for your unique needs. The planning conducted in a retirement income analysis can provide you with more choices and options you might not have considered, increasing the likelihood your funds will last as long as you do.
WHAT NOW, WHAT NEXT, WHERE TO?
You’ve done it: You’ve worked hard and saved for your retirement. But now you have questions. How do I make sure the money lasts? How do I cover all my expenses? Will my taxes increase? Will I have anything left to leave to my loved ones?
Today’s retirees are facing unique challenges related to longer lives, increasing health care costs, greater need for long-term care and growing demand to care for loved ones. Understanding the options and navigating the obstacles resulting from these challenges can be overwhelming for many.
An experienced financial professional can help devise a strategy that addresses your questions and “what-ifs” about retirement. They will work with you to find solutions that fit your unique circumstances, moving you along the path to the retirement you envisioned.
The journey to retirement is a long one. You should start today to help ensure you’ll have enough income tomorrow. Call now to schedule your personalized retirement income analysis and get answers for questions about your retirement. It’s your retirement—make it a great one!
Your Impact Wealth Team
(303) 645-4800 or Impact@ImpactWealth.com
The secret to living well and longer is: eat half, walk double, laugh triple and love without measure. ~Tibetan Proverb
DID YOU KNOW?
In 2000, an average American's health care cost $4,672. In 2020, U.S. health care spending grew to $12,530 per person.