In the world we are living in right now, many are considering retirement for a myriad of reasons. If that’s you, here are 4 things to consider.

1. Have a vision for your retirement. It can be quite depressing when individuals retire without knowing what they are going to do. They can become extremely bored and feel unfulfilled. In severe situations it can lead to depression and other emotional troubles. So, in tandem with figuring out the financial aspects of retirement, people should have a plan in place. Obviously, nothing is set in stone, and they may ultimately end up enjoying a lifestyle they never envisioned.

Pre-retirees often dream and question: What am I going to do in retirement? Am I going to volunteer? Will I travel? Will I be active with hobbies and sports? Will I be more social? Answering these questions and others like them will help them prepare.

Of course, sometimes we “do not know what we do not know.” However, other times we can have an idea. The end of a career is much like the beginning in that we don’t know where it will take us. When it comes to retirement planning, it helps to start with a vision of what retirement might look like, so expense estimates can be calculated.

A realistic assessment of what you will need and what you can save is crucial, because the answers will help a pre-retiree structure a plan that is both attainable and satisfying. We all dream but being realistic will give you a higher level of confidence that you have saved enough to partially or fully retire. It also helps answer the question of when to retire.

2. A budget. Numerous statistics show that most Americans do not know what they need to have saved to maintain their lifestyle in their retirement years.

Anyone considering retirement should have a sense of what they spend now and what they will spend in retirement. With more free time, it is easier to have increased expenses. Plus, inflation will likely increase expenses with each year lived in retirement. In other words, what you have saved today will likely not go as far tomorrow.

We see health care costs skyrocketing. This is a trend that does not seem to have an end. On top of that, longevity is improving. As we live longer, we have more years to spend. Plus, we might have more needs, and costs in those later years will likely further increase.

Debt and other liabilities also factor into the equation. It helps to work with a professional financial planner to evaluate these factors and others that go into creating a dependable budget.

3. An income strategy. Retirement income needs to provide for a comfortable lifestyle, but in a low-interest environment, it becomes more challenging to limit risk, while also having a steady flow of money to spend.

Many questions can arise about when to withdraw investments, how much to withdraw, and where to withdraw the money from. For example, there can be tax advantages in waiting to withdraw money from taxable accounts, such as IRAs and 401(k)s, but there are also required distributions that must be made at certain ages. For many reasons, there are also benefits in picking the right taxable or non-taxable accounts to sell from, when needed. Portfolios including non-retirement accounts, 401(k),

403(b), IRAs and pension plans all should be reviewed, along with certain forms of insurance to determine if they should be changed from growth to income-producing vehicles.

4. A firm grasp on government programs. Know how to take advantage of Medicare, Social Security and any other support you qualify for.

For example, Social Security can be tricky. Everyone’s situation is unique. Have you lost a spouse? Divorced? Been married for over 10 years, then divorced and remarried? Each situation is unique and treated differently.

My suggestion is that you make an appointment with the manager of your local Social Security office to explain your available options. They can’t advise you on what your best option may be, but they can answer your questions about the various choices. Also, with the help of a professional understand the laws and how they directly impact both your financial plan and estate plan.

I am taking new clients. Please call 509-707-0311 or email mike@iwa.us to schedule a free initial consultation.

My Value Proposition:

As a Wealth Advisor, I work with individuals and families who recognize that making informed financial decisions today is a key component to long term financial prosperity. I strive to act with honesty and integrity and to genuinely care about the success of the households I serve. As a local, fee-based advisor my advice is not given to generate commissions. I am competent, professional, and able to explain complex financial planning topics in a way that can be easily visualized and understood so that my clients can have confidence that their financial strategy is well thought out and sound.

The information provided here is for general information only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone.

All investing involves risk including loss of principal. No strategy assures success or protects against loss. Past performance is no guarantee of future results.

Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice and financial planning offered through Financial Advocates Investment Management, DBA Integrity Wealth Advisors, a registered investment advisor. Financial Advocates Investment Management, DBA Integrity Wealth Advisors and LPL Financial are separate entities.