Financial Planning In Retirement

Most people look at retirement as the finish line, the point after which financial planning and investing become moot.

The reality is far different. Forty percent of baby boomers expect to work until they die, according to data from AARP. The very idea of “retirement” is up in the air, since many folks in their mid-60s cannot afford to quit work and might never do so.

Here are some steps to help you approach financial planning in retirement:

1. Do estate planning now

Financial advisors regularly bemoan the fact that their clients operate under the presumption that they will never die. If you have any money at all, you have to have a plan in order to realize the tax benefits of leaving it behind intelligently.

At a minimum, an estate plan will give you a target, an end goal for whatever wealth you control, that helps you make better choices today.

2. Figure out your income streams

The Social Security Administration will help you get a solid projection of how much to expect and what happens if you delay taking benefits. This can get tricky, so take your time on it, especially if you are in a two-earner household.

If you have a pension or annuity, get a solid idea of your income from that. Now add in any work you continue to do and income from your retirement savings.

3. Be smart about spending

Advisers often toss out broad numbers, such as 80% of pre-retirement income. Your situation could be wildly different.

If you pay down your mortgage and have no other debt, your cost of living will be driven by health spending, taxes, food, insurance and travel. If you have major debts, however, things change.

4. Review insurance needs

Around 60 or so, most term life policies convert into much more expensive voluntary coverage. You might or might not need disability coverage, if you have it.

As you near 60, it will be harder to find long-term care coverage, so consider taking out a policy soon if you feel the need. A financial advisor can help you make smart choices here.

5. Stay invested

How long will you live in retirement? According to Centers for Disease Control data, maybe 20 years or more. That’s a long time, long enough for inflation to zap your nest egg. A conservative investment portfolio can generate income while protecting your wealth from inflation.

Retiring on time and living well are not conflicting goals, so long as you maintain a strong sense of the realities of financial planning in retirement. It’s not about “getting by” but effectively using the resources you have to make the best choices along the way.


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Credits: Mitch Tuchman

About the Author

How can you know what you should do if you don’t know what you can do? Author, radio personality, educator and financial planning pioneer Stephen Kelley shares his secrets to More Now, More Later™ retirement income planning. Most planners regard income planning as a “zero‐sum game,” a “Rob Peter to pay Paul” exercise. In these self‐serving, Wall Street‐dictated scenarios, people must limit the amount of income they receive to ensure they don’t run out of money in retirement. But there is an alternative to this “less now, more later,” or “more now, less later” mentality. Using state‐of‐the‐art income planning techniques, and his own trademarked “Last Things First™” planning process, Stephen Kelley blows the lid off the traditional Wall Street‐serving methods and brings retirement planning home to the individual retiree. In his books you will learn how to: - Unleash as much as 3 times the lifetime income using half the money with Kelley’s trademarked planning process, Last Things First™ - Ensure your Social Security benefits enhance, rather than impede, your plan. - Reduce, or even remove, taxes and fees from your retirement plan. - Maximize market returns while minimizing market risk. - Regain control of your pension so you not only get all the income you can, but so you can also leave it to your heirs. - Take control of the planning process so you can spend freely without worry. - Much, much more.

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