Enjoying a comfortable retirement depends on how well you prepared ahead of time to support your desired lifestyle, and how well you keep a pulse on your financial well-being after you retire. You may need to check periodically to ensure you can continue to afford retirement and health-care needs, no matter how much planning you did beforehand. To help you analyze your financial standing, here are 5 financial planning questions to ask yourself in retirement.
1. Should I downsize my home?
Retirees often end up living in homes that are larger than they need. With these homes, you can have higher property taxes, increased utilities costs, larger mortgages, greater maintenance needs, and other excessive expenses. All of these ongoing costs add extra financial burden to your monthly expenses. To determine if downsizing will help you financially, add up all these expenses to determine how much your home is costing you. You should also ask yourself other financial planning questions, such as what are the costs for selling your current home and buying another, and how much will your living expenses be at your new residence?1
2. Do I still have debt holding me back?
The baby boomer generation is entering retirement with an increasing amount of debt. In fact, 28% of middle-income boomers’ state that more than 40% of their monthly income goes toward debt.2 Gaining a realistic perspective of how much debt you’re carrying is essential for your budgeting efforts. You may find that you can pursue financial strategies that help you reduce your liabilities and free up that money for other needs.
3. Should I consider a part-time job?
While many people hope to retire and never work again, the reality for some retirees is that they need supplemental income to support their lifestyle. In 2017, 674,000 people 55 years old and over held part-time positions for economic reasons.3 If you find that you have gaps in your income, working part time may be a helpful financial planning strategy for you. Whether it’s for additional “fun” money or essential living expenses, the extra boost in income could make your retirement more financially comfortable.
4. Am I paying into unnecessary life insurance policies?
Once you retire, life insurance may not be as important as it was earlier in your adult life. While people need this protection while they are working and raising a family, their needs evolve once they stop working and their children move out of the house, among other factors. For this reason, you may be carrying life insurance policies that no longer reflect your current needs. Revisiting these policies is a good place to look for money you could use for other reasons.
5. Am I efficiently managing my health-care expenses?
A 65-year-old couple who retired in 2017 can expect to pay an estimated $275,000 on health-care costs during retirement.4 With people living longer than ever before, retirees need extra money to ensure they can cover health-care expenses for a longer time than in previous generations. Take an audit of your average medical costs and compare them with how much coverage you currently have. From there, you can see where you have gaps and any ways that you can reduce your expenses.
Maintaining adequate income throughout retirement can help ensure you are able to enjoy the quality of life you prefer. Feel free to contact us to explore ways that you may be able to restructure your financial responsibilities and create the additional income you need. Call our Denver office at 303-741-9772 or contact us by clicking here, we are ready to help you retire comfortably with the income you need for life.
Important Disclosure Information
Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Dechtman Wealth Management, LLC [“DWM”]), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from DWM. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. DWM is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the DWM’s current written disclosure Brochure discussing our advisory services and fees is available for review upon request or at www.dechtmanwealth.com.
Please Note: DWM does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to DWM’s web site or blog or incorporated herein, and takes no responsibility for any such content. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.
Please Remember: If you are a DWM client, please contact DWM, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. Unless, and until, you notify us, in writing, to the contrary, we shall continue to provide services as we do currently.
Please Also Remember to advise us if you have not been receiving account statements (at least quarterly) from the account custodian.
Join our newsletter
"*" indicates required fields