Retirement is an exciting prospect; the promise of full control over your own schedule, the challenge of learning a new hobby or making time for an old one, and so many other exciting changes. One of the most important factors to ensure an enjoyable retirement is making sure your finances are in order.
By working with a financial planner ahead of your retirement you can establish a long-term savings plan to prepare for retirement, and then a separate plan for income during retirement. There are many advantages working with a financial planner, here are five of the most important:
Creating an income stream from your savings
Applying and receiving government benefits
Paying down debt
Review your insurance needs
Make a budget
Once you retire and no longer receive a salary or income you will need to create an income from your savings. There are a number of ways you can accomplish this, each with different benefits to individuals with different life circumstances. Of course, one of the most important factors to creating an income stream from your savings is establishing sufficient savings and paying down debt (which significantly impacts your monthly income). The earlier you begin working with a financial planner to determine the savings you will need in retirement and the schedule for paying down your debts the more likely to will be to meet your goals.
Applying for and receiving government benefits is the easy part, the more difficult decision is determining when to apply for benefits and whether those benefits should form part of your regularly used income or be reinvested.
One of the most overlook components to a successful retirement is a realistic budget. Understanding your monthly spending is equally as important as understanding your monthly income sources. Your cash flow will dictate your standard of living in retirement.
last, but certainly not least, is the review of insurance needs. A common misconception is that retirees need less insurance. This could be true, but there are many exceptions to this, especially for those families that consider legacy planning of importance.
Contact great white wealth management, our managing advisor will work with you to establish a financial plan and give you confidence in your retirement planning.