Things to Consider When Preparing for Retirement

Planning for retirement can be complex and overwhelming for some. It’s basically assigning goals or levels of importance for the things that you want to do for the rest of your life and making sure you have enough of the right resources to accomplish those goals. Working with a financial professional can certainly help you plan accordingly and invest your money so that you can achieve your retirement goals. But for those of you who are starting to think about retirement, here are a few things to consider as a starting point:

Determine When You Want to Retire

Determining when you want to retire can be a big decision and involves more than just picking a date on a calendar. It requires proper planning to ensure that you have enough in savings and in your retirement accounts to help you maintain your lifestyle and achieve your retirement goals. What time of the year do you want to retire? Are you eligible for a bonus through work if you stay for a certain number of months? Working with a financial professional will help you plan accordingly so that you can maximize those benefits offered through your employer before you retire.

Decide How You Want to Transition into Retirement

How you want to transition into retirement is a personal choice. Do you want to be fully retired or find ways to stay busy? Do you want to continue working for additional income or are you interested in starting a second career? There are different ways to cut it when you think about what retirement could look like for you. Most importantly, you should have a good understanding of your overall financial picture to help you with this decision.

Be Aware of Your Income Sources for Retirement

Part of your retirement conversation should focus on the financial resources that will be available once you retire. What are your income sources going to be like? Will you be able to take a distribution from an investment account? Will you have a guaranteed source such as Social Security, a pension, or an annuity? Knowing your income sources and how they will impact your cash flow will help you achieve or maintain your lifestyle goals in retirement.

Identify Where Additional Support is Needed

Whether you’re taking care of an elderly parent or assisting a family member, it’s important to know how your money can help in situations where support is going to be needed. Try approaching that type of situation from an analytical standpoint so that you can weigh out the pros and cons. Are you willing to sacrifice your personal retirement success? Are there other appropriate means where you can still provide some semblance of support but not be fully responsible? Consider setting proper expectations or boundaries when helping family and friends to ensure that you have the support you need in retirement.

Consider Working with a Financial Professional

Families and individuals who choose to bring on a financial professional have a good understanding of the value proposition that they provide. A financial professional can help you with anything from tax planning, to navigating medical expenses, to accounting for inflation as part of your financial plan. They can help you invest your money appropriately so that you can achieve your long-term financial goals. Having a financial professional do all the heavy lifting can help you free up your time and energy for other needs and wants.

At Financial Dynamics, we offer a suite of financial and lifestyle management services that can be customized to help you create your retirement plan. Our advisory team is committed to helping you make informed decisions about your money so you can move closer to achieving your financial and lifestyle goals for retirement.

Advisory services offered through J.W. Cole Advisors, Inc. (“JWCA”). Financial Dynamics & Associates, Inc. and JWCA are unaffiliated entities.