10 Common Retirement Planning Tips

Here at 210 Financial, we talk a lot about the importance of making a plan for retirement. You might even say making a plan is our #1 piece of advice!

While that is still the best piece of advice we can offer, let’s dive a little deeper into the specifics of certain aspects of your retirement planning.

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Whether you are considering retiring in the next few years or it’s still a ways off, we’ve got ten retirement planning tips you won’t want to miss! We’ve included everything from financial strategies to potential tax considerations to maintaining your feeling of purpose in the retirement years, plus some specific tips for those who are approaching retirement soon.

 

1. Understand “sequence of returns.”

As you plan to pull from your investments to fund your retirement, be aware of how that will affect the growth of your investment. As you pull money out, it will begin to earn less interest and therefore have less growth over time. It’s important to know which investments you may want to use first so that high-earning investments have the most time to mature before you start taking money out.

 

2. Lose your fear of inflation.

Especially now, inflation can feel very concerning. However, inflation comes in cycles and many analysts believe it will level out. Property taxes and healthcare are actually more concerning as these items have a greater impact on your overall retirement plan. It is unlikely that inflation will remain where it is forever.

 

3. Start thinking about Social Security.

Social Security can be a complex topic and the rules are constantly being tweaked. It’s important to consider how and when you will “turn it on.” There are many factors that impact when the right time to start taking Social Security is.

As a general rule, if you need Social Security to live, you should consider taking it! And if you are still working or have other investments, consider delaying taking Social Security in order to get the maximum benefits. You should plan to meet with a financial advisor to help you determine when and how Social Security can fit into your retirement based on your specific circumstances.

 

4. Rethink where you want to retire.

Housing costs and state taxes vary from state-to-state. If you have the option or if you have family spread across the country, consider if another state has more benefits to warrant a move in retirement! You may end up getting to move to a state that not only is more retirement-friendly, but is also a place you’ve always wanted to live!

 

5. Have a game plan for healthcare.

While it may seem daunting, planning to get your healthcare needs covered can actually be really manageable. By setting up a plan in advance, you can be confident that everything you may need in your retirement will be taken care of. With Medicare kicking in at 65, many people primarily need to consider how they will cover healthcare until Medicare takes effect, in addition to the potential need for long-term healthcare.

 

6. Be ready to retire early.

Depending on your retirement options, it may make sense to retire early. Many people who had a lump-sum pension opted to retire in 2022 rather than 2023 or 2024 to avoid the total amount getting depleted by rising interest. There are many situations just like this one where it may make the most sense to retire early, which a financial advisor can help you identify. If that is the case, it’s important to have a plan!

 

7. Consider part-time work.

It can be hard to settle into the retirement lifestyle after being tied to an alarm clock for the majority of your life. A part-time job is a great way to not only make a little extra money to supplement your fixed income, but also to ensure you get out of the house and fill your time purposefully.

 

8. Do not neglect your self-care.

It’s not uncommon for retirees’ health to begin to decline as they go from working to retirement. One of the reasons for this is that some retirees don’t know how to fill their time and default to becoming sedentary. It’s important to start planning how you are going to fill your time, whether that be volunteering, picking up a new hobby, exercising with friends, or spending time with family.

 

9. Do the math on retirement.

We’ve said it time and time again: you need to have a retirement plan. That doesn’t mean throwing money in a 401K and hoping for the best. You need to sit down and crunch the numbers. While we can’t estimate how long you will live, there are ways to help make an accurate plan to make sure you have enough income to have the retirement you are hoping for.

 

10. Get professional help.

We know how hard it can be to make a financial plan and figure out how much you need to fund your retirement. That’s why we are here! We can help you plan out your retirement, whether you are just starting to plan for the future or are quickly approaching this milestone. It never hurts to get professional help to make sure your retirement is set up to be all you’ve dreamed it can be!

 

We hope these tips can be helpful to you wherever you are with your retirement planning. And if you are looking for specific support, we’d be happy to help! Together, we’ll decide how to move forward. Schedule a free Retirement Blueprint Financial Review here >>

 

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Additional source utilized: https://www.schwab.com/learn/story/timing-matters-understanding-sequence-returns-risk

210 Financial is more than just numbers. The “210” in our name stands for a childhood home that represented safety, love, and family. That is what we want to provide for everyone that we care for. Welcome home. Welcome to 210.

Insurance products are offered through the insurance business 210 Financial. 210 Financial is also an Investment Advisory practice that offers products and services through AE Wealth Management, LLC (AEWM), a Registered Investment Advisor. AEWM does not offer insurance products. The insurance products offered by 210 Financial are not subject to Investment Advisor requirements.

Investing involves risk, including the potential loss of principal. Neither the firm nor its agents or representatives may give tax or legal advice. Individuals should consult with a qualified professional for guidance before making any purchasing decisions. 210 Financial is not affiliated with or endorsed by the U.S. Government or any governmental agency. 1938066-8/23

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