Everyone’s idea of retirement is different – some dream of traveling, some want to stay home and spend time with grandchildren and some actually can’t wait to get to work, either on long “honey-do” lists or part-time jobs that keep them busy. How to structure your day in retirement is up to you; however, regardless of how that time in your life is envisioned, every pre-retiree should prepare ahead so they can live the retirement lifestyle they want.
We at PAX prefer the word “pivot” over “retirement.” We believe that you simply pivot into the next phase in life, as opposed to retiring and taking yourself out of service.
To comfortably pivot from years of working, we suggest a six-step process:
- Prepare for difficult decisions that may come up in your Golden Years.
- Review your cash flow and learn how to save to spend.
- Discuss emergencies and health care.
- Build a strategy of financial length.
- Make smart investment withdrawals.
- Create a legacy.
Learn more about PAX Financial Group’s PIVOT retirement planning and how it can help you.
Retirement is more than just a financial decision. It’s more than investments and savings. The end of your working career can be a complex and emotional time in life. Many decisions that are made at this stage of life can potentially impact your way of living for the next 20 to 30 years. One wrong move could change where you live, what you do and what you’re able to leave behind.
So, let’s break down these six steps:
Prepare for Difficult Decisions
Unexpected needs and wants will come up. Maybe with the kids or grandkids. Maybe with the house. With this in mind, instead of investing all of your money, make sure you keep a portion available for the unforeseen to gain comfort when a difficult decision does arise. Our country is on the tipping point of a cash-flow crisis, and we want to help avert bad decisions and ultimately reduce the anxiety that leads to premature death.
Review Your Cash Flow
Remember, no debt equals greater peace. Post-retirement spending doesn’t have to stop, but if it doesn’t adapt to your change in life, there could be long-term ramifications. That’s why establishing a flexible budget is so important. When you leave your working years, earning your way out of financial problems is no longer an option. If you save to spend, you’ll be able to take that amazing trip or pay for the house remodel you dreamed of. Imagine a house that’s paid off. Or future bills that were taken care of ahead of time. Reviewing your cash flow ahead of time allows you to better prepare for your post-retirement years.
Discuss Emergencies and Health Care
There can be emergencies. There may be health care concerns. We encourage setting up an emergency fund so when something does come up, you’re financially prepared at the least. The amount in an emergency fund depends on the family and its specific situation. Is there guaranteed income, like a pension or Social Security? We encourage you to plan for the unexpected, because it is the only certainty in life.
Build A Strategy of Financial Length
I love what I do and I have advised thousands of individuals and families through difficult financial decisions. In these years of experience, I realized that many financial troubles are not just about the numbers. They stem from behavior and poor decision-making. Being wise and preparing for a long life of vigor and happiness can get you there easier.
Make Smart Investment Withdrawals
When making withdrawals from your investment accounts, consider tax ramifications and stipulations. Pulling money out early could result in expensive penalties or lessen the value of a certain fund. Talk with a financial advisor before making decisions with your savings accounts.
Create a Legacy
Imagine leaving this world better than you found it. Establish a will, make sure all beneficiaries are updated and look into life insurance. In order to leave something behind for your children, you will need to take the little time, money and effort it requires to help ensure they are taken care of should anything happen to Mom and Dad.
Retirement is an exciting time that you work hard to reach. A little extra time to plan and prepare will make these later years even more enjoyable. PAX Financial Group offers financial assessments, retirement planning courses, investment management and practical advice to help you remove financial stress and implement a retirement strategy. Once you decide how to structure your day in retirement, we want to help you plan so you can make that happen.
- Start planning now – don’t put off the planning until it’s too late.
- Commit to the planning process.
- Run the numbers and know where you currently stand and where you need to be.
- Tackle blind spots.
- Avoid costly mistakes that can send you backward.
PAX Financial Group is here to help.
This material is provided by PAX Financial Group, LLC. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. The information herein has been derived from sources believed to be accurate. Please note: Investing involves risk, and past performance is no guarantee of future results. Investments will fluctuate and when redeemed may be worth more or less than when originally invested. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All market indices discussed are unmanaged and are not illustrative of any particular investment. Indices do not incur management fees, costs and expenses, and cannot be invested into directly. All economic and performance data is historical and not indicative of future results.
