Strategizing for retirement is its own unique financial planning act. Money will come in differently than it does now. Living will feel different. Goals will shift. Working with retirement experts to create a customized financial plan will help you feel confident about supporting yourself during what’s ahead and make you fall in love with your retirement strategy.
Anticipate and Itemize Expenses
Some retirees change their lives dramatically. They downsize, move to another area of the country, or travel. Others keep things status quo because they still have kids at home or enjoy the life they created and want to maintain the same in their retirement years.
When you know the category you fall into and are honest about anticipated retirement expenses, it will be easier to manage finances by anticipating monthly and annual expenses, discretionary and non-discretionary funds, and itemize the details. No matter what circumstances arise, you want to be able to manage the ongoing needs with existing resources:
- Home costs. Mortgage or rent, home maintenance, income and property taxes, HOA fees, utilities – whether you have one property or more or plan for these facts to change, every element must be taken into consideration. Home costs are non-negotiable.
- Vehicle costs. If you have one or more vehicles, payments, maintenance, and fuel are all part of the retirement strategy. Some retirees are fortunate enough to live where public transportation gets them everywhere they need to go. Budget these costs, from trains to Ubers.
- Health costs. If you’re healthy, anticipate costs for co-pays, basic annual care, and health insurance. It’s also important to set aside funds for the future, to avoid illness or disease impacting your savings.
- Fun and good deeds. You deserve to enjoy yourself in retirement. Itemize what you want to put toward food, dining out, travel, entertainment, gifts, and more.
- Charitable contributions. Your chosen obligations can fit into your retirement strategy but it’s important to be straightforward with yourself and your financial planner about the funds, charities, or groups to which you contribute. Amounts may need to change depending on where you stand financially after your work has ended.
Honest Financial Planning for Retirement
Your choices can fit into your retirement strategy, but it’s necessary to be straightforward with your financial planner about all your ideas. Be honest about your lifestyle, goals, and limitations. Have all those frank discussions with your pro so you know what’s viable based on your present portfolio and anticipated financial future:
- What is your precise retirement income?
- Do you still have children at home?
- Is there college tuition to pay?
- How will inflation affect your choices?
- What investment returns can you expect?
- What are the worst-case scenarios?
The Right Retirement Strategy for Your Family
Retirement strategy can come from multiple retirement income sources – a nest egg to investments to growth. The most important thing is to put effort into only the financial choices that make the most sense for you and your family. Rely on a budget. Know your worth and expenses. Act accordingly.
If you’re thinking about retirement but still several years out, talk retirement strategy with your financial planner at Hollander Lone Maxbauer in Southfield, MI. Get guidance and comfort from the experts. Contact us.
