The thought of retirement can be both exciting and daunting for those approaching this milestone in their life. Many people feel ready for retirement and the adventures and changes it will bring, but not all are as financially ready for their retirement years as they should be or would like to be. More so than just having enough money saved, a financial plan should be in place that works to ensure your assets are protected for years to come so that your retirement years can be as peaceful and stress-free as possible.
A Portfolio Is Not A Plan
You’ve spent your adult life accumulating wealth and expanding your portfolio in an effort to ensure comfort and stability for the years ahead, but now you have to make decisions as to how these assets can be best utilized to both fund your retirement and ensure your loved ones are cared for in the event of your passing. Having multiple investments and miscellaneous income streams does not equate to having a retirement-specific income strategy in place that protects your savings and ensures they are able to last for the rest of your life and beyond.
In the event that you lived 30+ additional years, saw a massive market correction, or encountered extensive medical bills, would you feel secure in your ability to continue not working? Would you be worried about running out of savings? Having a plan in place is a way to address these worries in a way that simply having a portfolio cannot.
Potential Healthcare Costs
We live in a country where individuals are often financially devastated by burdensome medical costs. Ongoing inflation can lead to increased prescription and medical supply prices in the short-term and healthcare costs overall typically rise beyond inflationary rates in the long-term, no matter the ongoing market conditions. Healthcare costs can be a massive retirement expense that must be included in your budgetary planning.
A model developed by Vanguard in collaboration with Mercer Health estimates average healthcare costs, even with Medicare, often reach beyond $5,000 per year. If retiring before the age of 65 and not yet eligible for Medicare, it’s important to know how you will navigate your medical expenses and insurance costs. If you will be retiring after the age of 65, it is important to know all your Medicare options and what the associated costs will be.
When someone passes without having a will or estate plan in place, their estate goes to probate court which decides how the property of the deceased will be distributed amongst the claimants. If managing those decisions, yourself, is important to you, it is best to consider creating an estate plan. In addition to having a will or trust for your personal possessions and properties, retirement accounts can have beneficiary designations specific to that account that can also be changed as needed.
Retiring without having a plan in place is like driving across the country on a road trip without a GPS – there would be no way to be sure of where you’re actually headed. At Moore’s Wealth Management, we can assist you in mapping out your retirement so that you know where your money will come from and after your passing, your estate will be given to who you would like to receive it. To schedule a complimentary financial review with Moore’s Wealth Management, click here or call our office at 770-535-5000, where a staff-member is awaiting your call Monday through Friday, 9AM to 5PM.
This material is provided as a courtesy and for educational purposes only. Please consult your investment professional, legal or tax advisor for specific information pertaining to your situation.
Advisory Services Network, LLC does not provide tax advice. The tax information contained herein is general and is not exhaustive by nature. Federal and state laws are complex and constantly changing. You should always consult your own legal or tax professional for information concerning your individual situation.