Most people look forward to their retirement years as the payoff for the hard work they put in during their work career. Plus, being able to travel, spend time with loved ones, and check off bucket list items is a great reward!
However, without proper planning, these retirement dreams may never see fruition.
That is where we come in! At SK Wealth Management, the satisfaction we get from seeing clients reach their retirement goals is tremendous. For most people, their dream is attainable with the right pre-planning. Naturally, the earlier the planning starts, the easier it is to be successful.
We are here to walk you through a comprehensive checklist of items that will set the course for the retirement you have worked for, and have dreamed of.
- What will be a realistic budget for your retirement years?
Consider what your average monthly expenses look like — and what type of travel, entertainment, and special events do you need to save for? Budgeting for retirement is more complicated than budgeting in the present because there are many factors that play into both sides of the balance sheet.
- Look at all sources of income (401k, pension funds, Social Security, investments, inheritance, etc.) and anticipate what the tax implications of those income sources will be.
- Look at expenses, some of which may not be readily apparent. Increased healthcare and living assistance costs, moving costs, and other unexpected expenses can add to your existing bills.
By anticipating these, you can ensure that your plans will stay on track.
[The first step is to look at what will be a realistic budget for your retirement years. What will your average monthly expenses look like — and what type of travel, entertainment, and special events do you need to save for?] [Budgeting for retirement is more complicated than budgeting in the present because there are many factors that play into both sides of the balance sheet. You need to look at all sources of income (401k, pension funds, Social Security, investments, inheritance, etc.) and you need to anticipate what the tax implications of those income sources will be. Then, you need to look at expenses, some of which may not be readily apparent. Increased healthcare and living assistance costs, moving costs, and other unexpected expenses can add to your existing bills. By anticipating these, you can ensure that your plans will stay on track.]But, what about the truly unexpected?
- Your SK Wealth Management advisor will help you properly prepare for unforeseen expenses by developing a plan for a well-financed emergency fund to meet these challenges.
This is critical in retirement, because your income will be much more limited than during your work life, so the buffer needs to be sufficient to weather the storm.
[Your SK Wealth Management advisor will help you properly prepare for unforeseen expenses by developing a plan for a well-financed emergency fund to meet these challenges. This is critical in retirement because your income will be much more limited than during your work life, so the buffer needs to be sufficient to weather the storm.]Even without unexpected expenses, a proper retirement plan needs to look at some one-time expenses from items on your bucket list, and account for your long-term (or snowbird) residence choices. Retirement is about living out your dreams — doing the travel and living the lifestyle you have worked your whole life for. With the proper planning, you can do the things you want and have a retirement life in the locale you choose without worrying about your finances. The real beauty of a well-crafted plan for retirement is the peace of mind that it provides in the present day.
- Your long-term planning needs to take into account the management of your 401k and other pension plans to maximize the value of their return while minimizing the tax burden.
The way you start withdrawals and how you schedule them impacts every aspect of your retirement plan. Properly managing these complex decisions requires a multi-disciplinary team approach that views the big picture of your financial well-being.
This is why a fiduciary like SK Wealth Management, with expertise in all phases of financial planning, is so valuable. We can combine the professional knowledge of tax planners, investment managers, and pension planners to create a roadmap that avoids speed bumps and detours. We also will help navigate the waters of estate planning with the same multi-disciplinary approach. Crucial decisions, such as whether or not to create trust, and reviews of wills and insurance policies are a vital part of any good retirement plan. At SK Wealth Management, we leave nothing to chance.
- You need to know the status of your Social Security account, and how best to manage these funds.
Having a true fiduciary work through the options is helpful, and can save you from pitfalls of tax penalties and lost opportunities.
[When planning your retirement, you will also need to know the status of your Social Security account, and how best to manage these funds. Again, having a true fiduciary work through the options is helpful, and can save you from pitfalls of tax penalties and lost opportunities.]- Always remember your health and supplemental insurance that might be advantageous.
While no one can guarantee good health, a proper retirement plan will prepare you to meet health-related challenges without endangering your savings and long-term security. For many, it is the single most important element of retirement planning.
[The final piece of the puzzle is your health and the supplemental insurance that might be advantageous. While no one can guarantee good health, a proper retirement plan will prepare you to meet health-related challenges without endangering your savings and long-term security. For many, it is the single most important element of retirement planning.]All of this can feel like a lot to absorb: Retirement planning calls on expertise from the full range of financial specialties; having a planner that can bring those diverse pieces together is crucial.
If you would like to start the discussion about your retirement plans, get in touch with the team at SK Wealth Management. We look forward to helping you live out your dreams!
