Prefer to watch? Click here to watch and listen on YouTube.

The retirement landscape has changed dramatically. Today’s retirees bear much more of the responsibility for securing their financial future. With people living longer than ever, what was once expected to cover 10 years of retirement may now need to last 30 or more years. So how do you plan for that kind of longevity?

In this episode of Money Wisdom, Jake Doser, CFP®, CPWA® and Nicholas J. Colantuono, CFP® explore this big-picture challenge and what it means for your long-term financial success.

A New Approach to Planning

Retirement is no longer just a final chapter; it’s often the back third of life. How do you balance meeting today’s needs while planning for tomorrow? That’s at the heart of what we help our clients achieve.

During your working years, you earned, saved, and built up your retirement accounts. But once you retire, that steady paycheck stops, while the expenses continue. As the cost of living rises and key health care decisions become more complex, retirement today requires a more thoughtful, flexible approach than it did for previous generations.

Taking Inventory and Closing the Gap

The first step in this planning process is to take inventory. Assess your current financial situation, including your income, expenses, and savings. Factor in “what-ifs” like taxes, long-term care, and life goals such as legacy planning or gifting.

Once you have a clear picture, the next step is to understand the gap. What’s the difference between your income and expenses, and how will you make up for that shortfall? From there, consider your risk tolerance and how hard your money needs to work to generate sustainable income.

Navigating Retirement’s Three Stages

Retirement often unfolds in three stages, each of which brings its own financial needs. The “go-go years” are for travel and bucket-list adventures. In the “slow-go years,” travel slows, but you still enjoy life. The “no-go years” come when health concerns arise, and activities become more local.

To navigate these stages, you need a sustainable income plan that not only covers essential expenses but also allows for enjoyment and prepares for unexpected costs such as long-term care, medical expenses, or the loss of a spouse’s income. The goal is a well-rounded plan for every stage of retirement.

It’s crucial to align your investments with how you’ll use your money in each stage of retirement. Too much in cash may feel safe but can lose value to inflation, while too much in high-risk investments can expose you to poorly timed market downturns. The key is finding a balanced approach that fits your goals and risk tolerance.

Are you wondering if you’re ready to retire? Get your free Are You Ready to Retire? Starter Kit by texting “KIT” to 800-757-0436.