Life is unpredictable and there are a number of events that can impact our finances, from global pandemics to personal crises. But no matter what’s going on, you’ll want to make sure you can retire on your terms. The first step is to know what parts of a retirement plan you need to cover. Here are some of those topics.
- Market volatility: If the past few months have caused you to rethink your investing strategy, the first step may be to assess or reassess your risk tolerance. Having a well thought out investment strategy that suits you specifically might help you avoid panic and hasty decisions based on emotion in times of market volatility.
- Social Security: The financial state of the program may be in trouble, but that doesn’t mean your benefits will be affected, or that a claiming strategy is any less important. There are many ways to claim, and the right way depends on your unique financial situation.
- Tax Burden: Taxes can be one of your biggest expenses in retirement, so a tax minimization strategy that looks long-term and is updated when the tax code changes is important.
- Health care expenses: Did you know that the average 65-year-old couple retiring today will need an estimated $363,946 to cover their healthcare costs? Covering unexpected healthcare expenses can be difficult. This is why it’s important to address these issues when setting up a plan to help make sure there are no issue.
An advisor can help you with all areas of retirement planning, including a tax minimization strategy, Social Security optimization strategy, health care expense plan, and an investment strategy. All of these parts should work together as part of a singular integrated retirement plan. If your advisor hasn’t gone over some of these points or if you have questions about one of these aspects of your plan, then please schedule a call with us.
