To have a successful retirement, one must plan.
All stages of life have their own unique challenges.
Retirement is no exception.
You may no longer carry the stresses of a job, but retirement can also cause anxiety.
According to a recent Kiplinger article titled “Near Retirement? 5 Plans You MUST Have in Place,” this is especially true if you have failed to think and plan ahead.
You may run out of money in retirement.
How can you prevent this?
Plan for your income and expenditures.
You want to have enough money to cover your expenses for the standard of living you desire.
To do this, you need to estimate your probable costs and begin saving now.
Plan for emergencies.
What happens if you (or your spouse) become ill or injured?
What will happen when you (or your spouse) die?
How will you pay for care or funeral costs?
You need to consider both potential and inevitable scenarios.
Evaluate your investment growth.
If you are nearing retirement, chances are you will want to reduce risk in your portfolio.
You will also want to provide enough growth to cover inflation.
Plan for taxes.
Just because you are retired does not mean you are done with taxes.
Not by a long shot.
No, you will still owe the government money, especially as you begin taking required minimum distributions from your retirement funds.
The amount of taxes you pay will depend on how carefully you plan you cash flow from taxable (think traditional retirement funds, like your IRA) and non-taxable sources (think non-traditional retirement funds, like your Roth IRA).
Create an estate plan.
What persons or charities should inherit your assets when you are gone?
Work with an experienced estate planning attorney to help you create a plan to meet your goals and needs.
Ultimately, a successful retirement takes forethought and wise counsel.
Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.
For more information about estate planning in Overland Park, KS (and throughout the rest of Kansas and Missouri), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.
Reference: Kiplinger (May 2017) “Near Retirement? 5 Plans You MUST Have in Place”