Retirement is arguably the largest saving goal you’ll have in your life. While saving for your golden years may not always seem like a top priority, it can creep up on you — fast.
Retirement planning requires a strong strategy to support the goals and dreams you have for your future. Your retirement plan will take a comprehensive look at your finances, your physical and mental wellbeing, and your lifestyle. The best way to be assured that your retirement plan is in order is to have a certified financial planner or a fee-only financial advisor work with you.
How retirement planning with a financial advisor can help
Your finances are at the heart of your retirement plan. After all, your goals for retirement rely on your financial ability to support those goals, and that is where a financial advisor comes into play for support and guidance.
One of the main goals of retirement planning is to understand your financial state. This way, when you want to go on a trip around the world, you’ll be able to do so (with no financial surprises).
A financial planner will be able to help you make a plan for your finances in retirement by looking at:
- Your changing risk tolerance and how that will impact your future investments
- Your current and expected cash flow
- Additional options for income (if needed)
- Creating a plan for Social Security benefits
- Implementing a tax planning strategy
- Charitable contributions
Even though the average cost of retirement was $49,000 per year in 2014, that does not mean that specific number will fit into your lifestyle. All aspects of your financial plan will help work to support the life you want to live in retirement. Your financial planner will be able to help you create a strong plan for your finances that aligns with your future goals and current values.
Retirement planning analyzes your future health costs
Healthcare is one of the leading costs for retirees over the course of their lives and more often than not, it can be one of the most overlooked. Retirement planning can help you know how much you will need to prepare.
According to a Fidelity study, a 65-year old couple retiring in 2019 could expect to pay an average of $285,000 over the course of their retirement on medical expenses alone. This makes healthcare one of the most important parts of your retirement plan.
Health insurance in retirement has many moving parts, making it crucial to understand the options you have. When you’re employed, your employer pays a majority of your health insurance, but when you’re retired, it gets far more complicated. This is another area where strong retirement planning can be truly invaluable.
It’s imperative to have a discussion with your financial planner about Medicare so that they are able to create a plan that will provide you with suitable coverage and payment options.
The Medicare system often leaves people with many questions, so it is important that you know what your plans will and will not cover along with the payments (copay, coinsurance, deductibles, premiums, etc.) you will be responsible for. On average, Medicare will only cover between 50-60% of your healthcare expenses.
In addition to the above, you will need to make a plan for your physical and mental health. Staying active in retirement can boost your metabolism — keeping you healthier and stronger for longer.
Your mental health is also an extremely important facet of your health plan. Mental health is arguably just as important as physical health, if not more so. Staying mentally healthy can include engaging in activities and communities that challenge you, are in line with your passions, and force you to think in new, interesting ways.
Your retirement planning should support the lifestyle that you love
The last pillar of retirement planning is to build a life that you are excited about living — one that makes you happy to wake up in the morning.
Retirement can be a time for you to pursue passions and find joy, meaning, and fulfillment in the things you do. Your financial planner will be able to help shape your plan to accommodate whatever you wish to do — the sky’s the limit.
Lifestyle planning is an intricate process and asks you to think through many parts of your day-to-day life that may come naturally to you now, but can drastically change when you retire. These areas can include:
- Where and how you want to live
- How you want to spend your time
- The ways you will develop a community and relationships
- How you find fulfillment
These areas look very different for each person. You may be interested in pursuing an encore career, sitting on a board, volunteering regularly, going back to school, or spending time with your grandchildren and loved ones. Whatever your goals are, your retirement planner will help create a plan tailored to your future aspirations.
More golden retirement planning with Platt Wealth Management
It can feel intimidating, almost impossible, to plan for all of the moving parts within the retirement world. Don’t worry — you’re not expected to do it alone!
If you are searching for a certified financial planner that you can trust to help plan the next stage in your life, look no further. At Platt Wealth Management, our financial advisors put your needs first and provide completely transparent services to best prepare you for all stages of retirement.
Are you ready to take control of your retirement plans? Give us a call at (619) 255-9554 to set up a complimentary review or email us here.