November 14, 2022

Dream a Little Dream- Your Retirement Dream

Prepare now and watch your future unfold!

Do you know how long do you will spend in retirement? With life expectancies on the rise, people are living longer, in fact, well into their 80’s and beyond. This means that in order to sustain your current lifestyle or one you aspire to in retirement, careful forethought is required. Taking steps to strategically plan out your future will avoid falling short of living out the dreams you’re holding onto. The thought of how and what to do or where to start could be overwhelming but being honest and realistic with your financials and what you have to work with will help you plan accordingly. Let’s explore some areas to think about, and lay down a path for a stress-free and enjoyable retirement.

Continue to reinvent yourself

Whether through physical activity, staying socially connected, or by learning something new, engaging in physical and mental activities encourages your health and well-being as you age.

Retirement can mean continuing work

Find something you enjoy whether it is a part‐time job, an encore career, or volunteering.

Track and assess your budget and income

Remain flexible in your spending, budgeting and lifestyle. Your financial situation may change from year to year.

Take inventory of your assets

Evaluate where you currently stand financially. Consider your expenses compared to your income and budget. Be sure that your investment portfolio reflects your age and risk tolerance. Remember, generating retirement income from investment is not the same thing as growing your investments.

Be proactive in your tax planning

For IRAs and other retirement accounts, keep your Required Minimum Distributions (RMDs) in mind by planning ahead and understanding the rules and tax implications. Consider gifting money to your heirs if your financial situation allows.

Eliminate all debt

In an ideal world, we’d all enter retirement without any debt. Since your income in retirement is likely to decrease, any fixed payments will start to take up a larger share of your expenses. It is time to take a look at the debt column of your inventory. Add interest rates and terms in a new column beside your outstanding debts.

Consider a financial planner

An objective third‐party review can be critical at this stage and may assist you in developing a sustainable withdrawal strategy.

Healthcare costs are always changing and increasing

Enroll in Medicare, including a drug plan, as soon as you are eligible, in order to avoid costly and long‐term penalties.

Reassess your medical situation yearly

Take advantage of the annual Medicare open enrollment period to make changes.

Consider life insurance

When deciding if you need life insurance, it is better to sign up for a policy as soon as possible. You will save by purchasing at a younger age and in your best health.

Put your plan in writing

No one likes to think about their passing, but as you near retirement, ensuring that you have a plan in writing can give you and your family the peace of mind of knowing your final wishes. Being prepared with an estate plan can ensure your family is not plagued with financial burden after you’re gone, and that your estate is properly dispersed according to your desires.

Establish a power of attorney

In addition to creating a will, you should also assign a power of attorney and healthcare proxy. You should establish guardians for living dependents and appoint beneficiaries on life insurance plans, retirement accounts, and shared assets.

Discuss your wishes with your family

Openly discuss your finances and final wishes to your family in the event you can no longer manage your own affairs. You can also craft a letter with any information that hasn’t been accounted for, like desired funeral arrangements or dissemination of sentimentally family heirlooms.

Elder financial abuse is a growing problem

Take steps early to protect yourself. Consider confiding in relatives or a trusted friend regarding your financial situation.

Review and assess

Confirm that all beneficiary designations are in place and that you have a proper will, or other estate planning tool, to help ensure your money goes where you want it to go.

On-going monitoring

At least once a year, check your credit report to ensure accuracy. Dispute any false information.

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This guide is for informational purposes only. We are not tax advisors, financial planners, or affiliated with Medicare. KSKJ Life does not provide investment advice and this material is not intended to provide investment advice.

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