Spending is a big concern for many approaching and in retirement. Expenses such as health care, taxes, and long-term care are all taking away from the nest egg you’ve worked to build for years. Concerns have also been elevated recently due to the economic volatility brought on by the COVID-19 pandemic, and many people have lost a significant portion of their savings. The stakes are very high, and it can be overwhelming. Here are a few steps you should consider taking to help reduce the fear of spending in retirement:
Create a Budget
Creating a budget before you reach retirement is great way to see how much you can expect to spend and earn once you are no longer working. You should consider income sources you will have access to, such as Social Security, pension, and 401(k)s and factor in expenses such as taxes, health care, and long-term care. The first step is to determine what you consider a necessity and what you can do without. For example, if you plan to travel in retirement, that will be an expense you’ll need to plan for. Taxes will be an inevitable aspect of your budget, so you should make this a top consideration and plan accordingly. Creating your budget will help set your retirement plan in motion.
Plan For Every Season
No one knows what the future will hold, which is why we help you plan for every season of life. You need a plan that can weather any potential storm you may encounter. You don’t want to put off planning and have your finances suffer due to an unexpected economic event. It’s also important to understand which retirement phase you are in to help determine the appropriate level of risk for you. If you are only a few years away from retirement, you probably want to avoid unnecessary risk. Having a plan in place can help provide added peace of mind and allow you to focus on what’s important to you.
Speak to a Financial Professional
A financial professional is a valuable tool in planning your ideal retirement. We have experience helping people going through the same things you are and will create a plan designed specifically for your situation. We can answer any questions you may have and help you understand financial concepts you may not be familiar with. There is strength in numbers, and having people on your team can help you achieve your retirement goals. The good news is that with proper planning, you don’t have to live with the fear of spending your money in retirement. Create a realistic budget that you can stick to and plan ahead for every potential circumstance. Lastly, find a financial professional who can provide the right financial services for you. We are on your side and want to help you succeed and protect what you’ve worked hard to save. Let’s work toward building your ideal retirement plan together.