Like so many transitional periods, Autumn makes us consider what lies ahead, and the need to be prepared. We enjoy the cooler breezes, we feel the change of season in the air. Fall whispers of the winter around the bend. It’s a time to pull the boat out of the water, test the furnace, and pull out our long-sleeves. We consider how we need to prepare for the season ahead.
Steps toward and throughout retirement have different objectives and rhythms. In the younger years, folks save and sacrifice towards a nest egg for retirement. They dream a bit too, imagining what they’d do with all the free-time, and hopefully with enough financial wiggle-room to splurge a bit (or a LOT!) The closer they get to the golden years, the more they want assurance that their plan is good and will provide a stable retirement before they actually retire and can enjoy the fruits of their preparation. It’s important for pre-retirees to review their resources, test their plan, and see if they really are retirement ready.
Some key areas to consider are how to generate income, reduce risk, and minimize taxes in retirement years. Pre-retirees can ask themselves how prepared they are by comparing their Life Goals, Hopes, and Dreams for retirement with reality to see how on- or off-track they are:
- How much income do I need to live the retirement I want and will my retirement income and portfolio support it?
- How long should I wait before starting Social Security to balance my need for income sooner with getting more income by waiting later?
- Which accounts should I draw money from and when, to account to minimize taxes and to account for inflation?
- What should we do if my spouse or I are at financial risk if one of us should pass away or need care?
It’s helpful to gauge one’s comfort with the answers to these questions, by reaching out for professional guidance in areas that are less familiar (and honestly, getting expert input is helpful for identifying blind spots as well).
Alongside financial planning, we have a deep need to prepare for LIFE in retirement. How will we spend our time? What will our lifestyle and those extra-special experiences look like? With who will we be sharing life? Often, we forget to think about our deeper needs for fulfillment… so, what will it take for our lives to feel fulfilled? It’s vital that we make a plan and prepare for what our IDENTITY and PURPOSE will be in this new season.
Some important thoughts to reflect on:
- What will one’s IDENTITY (the core of what is most important to who a person is) be in retirement?
- What part does career (and raising children) play in giving us purpose and meaning and what will provide that for us when we are retired?
- What will we need to shift in retirement for us to have the structure, connection and fulfillment we need?
Life is full of seasons with their inevitable change. Surrounded by the fun of fall festivities and looking toward the holidays to come, think about the changes in seasons of life. In this time of transition, take time to lean into preparing for what’s coming around the corner. Why not ask retirees for their insights on how their life has changed and how they’ve learned and grown? And consider connecting with a Life Coach who can guide you in this journey. Most importantly, press more deeply into those relationships that make your life special. The AMAZING retirement you will live starts with deciding what changes you will have in your life by doing the necessary LIFE planning.
By Len Hayduchok, CEO and owner of Dedicated Financial Services. As a fiduciary and Certified Financial Planner™, Len offers his wealth of experience to guide others through the mire of Financial and Retirement Planning. As a Certified Life Coach, he pairs his financial expertise with a heart to help others who want to make the most of their retirement plan. Len’s latest book MaxAMAZING™ Your Retirement, combines both his financial and life coaching expertise to help guide retirees into a more enjoyable and fulfilling season of life. For free, helpful resources, Len offers both his websites for public access: www.DedicatedFinancialServices.com | www.MaxAMAZING.com. (Investment Advisory services offered through Turner Financial Group, Inc. an SEC Registered Investment Advisory Firm)
